AML/CTF Tranche 2 — Deadline Approaching

Smart Workflow Automation That Works

AI-powered due diligence that cuts case time from 20 hours to 15 minutes — fully auditable, AUSTRAC-ready, and human-in-the-loop by design.

⏱ Time Until Tranche 2 Commencement (July 1, 2026)
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Get compliant before the deadline.

Who Is Affected

Tranche 2 Reform Impact Guide

Australia's AML/CTF reforms extend obligations to Designated Non-Financial Businesses and Professions (DNFBPs) for the first time. Here's who's affected.

High Risk

Real Estate

Agents & conveyancers facilitating property transactions

High Risk

Legal Services

Lawyers managing client funds or property transactions

High Risk

Accounting

Accountants providing financial management services

High Risk

Trust & Company Services

Providers forming companies or managing trusts

Medium Risk

Precious Metals & Stones

Dealers in high-value goods and luxury assets

High Risk

Crypto & Digital Assets

Virtual asset service providers (VASPs)

Commencement Date
1 July 2026
Tranche 2 reforms take effect
New Impacted Entities
100,000+
Australian businesses now covered
Maximum Penalty
$20M+
Or 3× transaction value, whichever is greater

The 6 Core AML/CTF Obligations

Tranche 2 entities must comply with all six of these obligations. Our automation platform handles each one.

OB-01

Customer Identification & Verification (CIV)

Know Your Customer (KYC) checks at onboarding — verifying identity using government-issued documents and biometric or digital verification methods.

OB-02

Beneficial Ownership Identification

Identify and verify the ultimate beneficial owners (UBOs) of all legal entities — including trusts, companies, and partnerships.

OB-03

Ongoing Customer Due Diligence (CDD)

Continuously monitor customer relationships and transactions to detect changes in risk profile throughout the business relationship.

OB-04

AML/CTF Program Development

Document and implement a board-approved AML/CTF program — including policies, procedures, and controls proportionate to ML/TF risk.

OB-05

Suspicious Matter Reporting (SMR)

Report suspicious matters to AUSTRAC promptly — with new reforms expanding the scope of what must be reported and by whom.

OB-06

Record Keeping

Maintain comprehensive records for a minimum of 7 years, including transaction records, customer identification data, and risk assessments.

Explainable AI

Human-in-the-Loop by Design

AI assists. Humans decide. Full stop. Every risk classification is reviewed and approved by a qualified compliance officer before action is taken.

01
📥
Data Ingestion

Automated document capture from email, portals, and API

< 60s
02
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AI Extraction

Structured data extracted from unstructured documents

< 2min
03
📊
Risk Scoring

Multi-factor ML risk score applied per AUSTRAC guidelines

< 1min
04
👤
Human ReviewYOU

Compliance officer reviews AI output, approves or escalates

5–15min
05
📋
Audit Logging

Every decision, timestamp, and action permanently logged

Automatic

What the AI Does

  • Extracts data from documents in seconds
  • Cross-references against sanctions lists
  • Scores risk using multi-factor ML models
  • Flags anomalies and unusual patterns
  • Generates draft reports and summaries

What Your Team Does

  • Reviews AI findings with full context
  • Applies professional judgment to edge cases
  • Approves or escalates risk decisions
  • Maintains client relationships
  • Signs off on all regulatory submissions

Manual vs Automated Workflows

The difference is dramatic — and the business case for smart workflow automation has never been stronger.

Manual Due Diligence
20 hrs
Average per complex case
With Patmac Automation
15 min
Same case, complete audit trail
Metric
Manual
Automated
Due diligence time
15–20 hours
15–30 minutes
Document handling
Manual review, high error rate
AI extraction, >98% accuracy
Risk scoring
Subjective, person-dependent
Consistent ML-based scoring
Audit trail
Incomplete emails & files
Complete, timestamped, exportable
AUSTRAC reporting
Manual preparation, days
One-click report generation
Cost per case
$500 – $2,000+
Dramatically reduced
AUSTRAC-Ready

Complete Audit Trail. Peace of mind.

When AUSTRAC comes knocking, you'll have everything you need: a complete, immutable record of every decision, every document, and every action — with AI confidence scores preserved alongside human approvals.

Audit Trail
Audit logs for actions performed, kyc report details, risk assessments, etc. Provides a complete audit trail.
AI Confidence Scores Captured
The AI's confidence level and rationale for each risk classification is stored alongside the human's final decision — demonstrating explainability.
One-Click AUSTRAC Reporting
Generate SMRs, transaction anomalies reports, and compliance summaries instantly — pre-formatted to AUSTRAC's specifications.
Role-Based Access Controls
Granular permissions ensure only authorised personnel can view sensitive customer data or modify risk classifications.
AUDIT LOG — CASE #KC-2025-00841
09:12:04Document receivedSYSTEM
09:12:09AI extraction complete (97.3% confidence)AI_ENGINE
09:12:11Sanctions check: CLEARAI_ENGINE
09:12:12Risk score: MEDIUM (38/100)AI_ENGINE
09:24:37Case reviewed by J.SmithHUMAN
09:24:48Risk classification: APPROVEDJ.Smith
09:24:49Audit record sealedSYSTEM
🔒 Record immutable · 7-year retention · Exportable to AUSTRAC format
The clock is ticking. Don't wait.

Get Compliant Before the Deadline

Book a free Tranche 2 readiness call. We'll assess your current exposure and show you exactly what's needed to be ready by July 1, 2026.