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AML/CTF Reforms - Tranche 1 Portal
The new AML/CTF Act and Rules will come into effect on 31 March 2026 for all existing Reporting Entities. Keep reading to find out how Sophie Grace can help you meet these requirements.
With the progression of Australia's AML/CTF reforms, Reporting Entities face new obligations designed to strengthen the integrity of Australia's financial system and improve the detection of financial crime.
To support you through these changes, we are pleased to announce the launch of our Tranche 1 Portal. This dedicated portal brings together key information, practical tools and clear guidance to assist you in understanding and preparing for your evolving compliance responsibilities.
We encourage you to explore our two dedicated AML/CTF webpages
which provide further clarity on your obligations under the evolving framework.
We also have a range of blogs to help you navigate the reforms:
- Frequently Asked Questions
- How to Prepare for the AML/CTF Reforms - A Practical Guide
- Understanding AML/CTF Reforms (Part 1): Existing Reporting Entities
- Understanding AML/CTF Reforms (Part 2): Value Transfers
- AUSTRAC Guidance - Tipping Off
Continue reading below.
What is a Tranche 1 Entity?
Tranche 1 Entities are existing AUSTRAC Reporting Entities. Tranche 1 entities are those that provide one or more designated services listed under section 6 of the AML/CTF Act that have a geographical link to Australia.
Tranche 1 entities include: fund managers, CFD brokers, securities dealers, remittance service providers, digital currency exchange providers, and credit providers.
AML/CTF Reforms - Simplifying and Modernising
We have prepared an overview of the upcoming AML/CTF reforms and how they may impact your business. This includes:
- key changes to the AML/CTF Programs;
- customer due diligence requirements;
- reporting group structures;
- AML/CTF Compliance Officer eligibility; and
- updates to the tipping-off offence.
AML/CTF Programs
Our AML/CTF Programs page outlines what reporting entities must include in their program, from risk assessments and governance structures to CDD processes, reporting obligations, training, and independent reviews. We can also help you tailor your AML/CTF Program to meet the updated risk-based requirements under the new regime.
AML/CTF Blogs
How to prepare for the AML/CTF Reforms - A practical guide
As the commencement date for the AML/CTF reforms approaches, reporting entities face a critical period of transition. With the finalised AML/CTF Rules now released and major changes taking effect from 31 March 2026, businesses must begin reviewing their governance structures, compliance roles, risk assessments and customer due diligence processes to ensure a smooth shift to the new regime.
Our blog outlines the key steps you should take now to prepare your organisation for these reforms.
Understanding AML/CTF Reforms - Part 1: Existing Reporting Entities
This article breaks down the key changes introduced under the AML/CTF reforms and what they mean for existing Reporting Entities ahead of the 2026 commencement.
Key AML/CTF Reforms applicable to existing Reporting Entities:
The article also summarises important amendments to tipping-off rules and AUSTRAC's expanded regulatory powers.
Understanding AML/CTF Reforms - Part 2: Value Transfers
This article provides a clear and practical breakdown of the new value transfer framework, outlining what value transfers are, who forms part of a value transfer chain, and the obligations placed on reporting entities involved in these transfers.
Parties in a Value Transfer Chain:
- The payer and payee can be the same person.
- The ordering institution and beneficiary institution can be the same person.
- In each value transfer chain, there is only one ordering institution and one beneficiary institution. There may be multiple or no intermediary institutions.
It also explains the additional requirements for virtual asset transfers and introduces the upcoming International Value Transfer Service (IVTS) reporting obligations that will replace current IFTI reporting.
AUSTRAC Guidance - Tipping Off
AUSTRAC has released updated guidance on the tipping off offence under the AML/CTF Act, which came into effect on 31 March 2025. The guidance explains what constitutes tipping off, the circumstances that may prejudice an investigation, and practical steps reporting entities can take to manage risks, including staff training, secure information handling, and careful communication with customers or third parties.
Key steps:
AML/CTF Subscription Plans
To assist entities in staying ahead of the upcoming reforms, we have launched our new AML/CTF Reforms Subscription Portal. We provide access to drafts of the new AML/CTF Policy and supporting documents, plus any updates we make as further guidance and industry best practice becomes available.
By signing up to this subscription, you will also get one (1) hour of consultation time with a Sophie Grace team member to answer any questions you may have about the upcoming reforms and how they affect your business. We have a subscription option for Tranche 1 entities and Item 54 providers. You can read more by clicking on the button below.
Shop Products
- AML/CTF Package
- AML/CTF Calendar of Obligations
- AML/CTF High Risk Register
- AML/CTF Compliance Officer Checklist
- AML/CTF Outsourcing Due Diligence Checklist
- AML/CTF Reporting Group and Lead Entity Checklist
Frequently Asked Questions
To support reporting entities in understanding their new obligations under the AML/CTF reforms, we have prepared a detailed FAQ outlining key timelines, program updates, governance requirements and customer due diligence.
To see the answers to our most commonly asked questions, and more, click on the link below.
Guidance
- Central source of AUSTRAC updates on the new reforms
- Guidance on new obligations for reporting entities
- Regularly updated timelines, fact sheets and support materials
- Sets out the detailed operational requirements under the amended AML/CTF Act
- Includes new obligations in relation to CDD, reporting groups, governance and tipping-off
- Consolidated version of the updated AML/CTF Act reflecting all recent amendments
- Provides the legal foundation for the new reforms
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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