Tranche 2 AML for TCSPS

Author : Name Scan | Published On : 06 Aug 2026

Australia is strengthening its financial crime defences by implementing significant modifications to its Anti-Money Laundering and Counter-Terrorism financing (AML/CTF) laws. These revisions will subject more enterprises, known as “Tranche 2 entities”, to AML/CTF regulations. The new AML/CTF rules will affect Tranche 2 entities such as lawyers, accountants, Trust and Company Service Providers (TCSPs), real estate agents, and precious metals and stone dealers.  

AML/CTF Risks for TCSPs

The nature of the services provided by TCSPs makes them especially vulnerable to money laundering and terrorism financing. These vulnerabilities stem from several major factors:  

• TCSPs can be used to conceal the origins of criminal funds by establishing legal entities such as corporations and trusts that obscure beneficial ownership.  
• Money launderers might employ the complex layers of legal company structures afforded by TCSPs to conceal the genuine owners of assets, making it harder for authorities to trace criminal proceeds.  
• TCSPs frequently conduct cross-border operations, making it easier for money launderers to transfer illicit cash worldwide and exploit states with lax AML standards.  
• Money launderers may use TCSP services to avoid paying taxes and take advantage of known tax shelters, thereby advancing their criminal financial schemes.  
• Money launderers seek for TCSPs because they have specialised skills, technological proficiency and knowledge that can help them with sophisticated money laundering operations.