With Tranche 2 due to be rolled out in the next few years, we summarise what Tranche 2 is all about and why it's important that it is implemented in Australia.
Transcript
Tranche 2 is the second wave of the AML legislation in Australia.
It's originally Tranche 1 includes the financial sector so everyone who has a bank account, borrows or lends money, that's Tranche 1.
"Tranche 2 is aimed at gatekeeper professions. So your lawyers, your accountants, your real estate agents."
They're further down the money laundering chain. It's about how they convert cash to assets. And that's a real primary concern in the anti-money laundering space because being able to move cash through your accountants, your lawyers, your real estate agents is a major problem across the world.
I think especially in 2023 we're seeing so much news come out about these big gang busts, these drug busts, and in all these articles, they say stuff like, "We confiscated 18 properties." And as someone in the AML profession, I always think, "How did they get those properties? How did they buy those properties?"
"Now that is a direct relation and a direct correlation of not having strong anti-money laundering laws in place for Tranche 2 and lawyers, accountants or real estate agents, because they're able to move these funds into properties."
And that affects all of us, right? Like everyone realises the cost of housing in Australia's so high right now.
"The average person can't afford to buy a home and it's being exacerbated by these people fueling dirty money into property."
I think the biggest issue with money laundering and something that we need to get ahead of us here in Australia, is that it is extremely profitable.
It's extremely profitable for the law firms, the real estate agencies, the accountants. Even if they don't know that, that's what's happening.
If someone comes to you and they want to settle 18 properties with you, that is extremely profitable. It's very hard to turn that away.
"And that's why legislation in the space is so important, because if you have to do these checks, you're on a level playing field with everyone else."
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Keen to learn more about Tranche 2?
Watch AML/CTF Tranche 2: advice from other countries
Watch AML/CTF Tranche 2: challenges and opportunities
Join the Tranche 2 webinar.
- What the legislation means from a compliance and commercial perspective.
- Key learnings from Legal, Accounting and Real Estate compliance leaders
- Practical insights and 'gotcha's' experienced when equivalent legislation was introduced
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