Tranche 2: The Next Big Step in Compliance

If you are a Lawyer, Real Estate Agent, or an Accountant in Australia, you may be wondering what exactly this ‘Tranche 2’ stuff will mean for you in practical terms.

Let’s start with the facts. To be honest, it’s a bit of a guessing game we're calling ‘GuessaFact’ because, in all honesty, we're making some BIG assumptions, and probably, so are you. Let's break down the facts first.

FATF is coming and they aren't messing around! The Financial Action Task Force (FATF) recently dropped a bombshell report – FATF called out countries that need more rigor. China, the USA, and Australia are behind, and for that reason, FATF is considering grey listing. Monaco has just been grey listed. Will Australia sort this out in time?

“The U.S., China and Australia are fuelling illicit finance by failing to subject attorneys, real estate agents and other “gatekeeper” professions to anti-money laundering requirements, the Financial Action Task Force warned Monday”

There is a link for that here (thanks ACAMS). We kind of know when, but we don’t know the exact date – that's one of those GuessaFacts again. Basically, the rumour mills are suggesting that this year, what's left of it, will see the AGO (Attorney General’s Office) release the AML/CFT reforms paper in 2024, and that early 2025 will be the kick-off period for implementing the changes. This bit is the scary bit.

What’s Biometrics got to do with it?

Well, as experts (APLYiD is the leading AML ID, KYC provider in NZ and one of the fastest-growing platforms in the UK) in this space, we can tell you that it’s pretty likely that the reform will look, smell, and feel like the UK & NZ reforms, both of which have worked well. Why reinvent the wheel? That’s just more risk. So, if that’s true, you can expect to see a lot of talk about remote verification, linking biometric, Proof of Address, name, Date of Birth, and PEP-checking. It’s a lot to take in, and that’s probably the easiest bit (if you pick the right software partner that is). With the Privacy Act reforms happening too, the focus will be two-fold.

Let's face it, AML isn’t sexy and if you’re reading this, it will be one of those annoying things that you’ll have to do to get on with business life. They call it ‘ticking the compliance box’ in the UK and probably, you’ll think the same.

However, being late to the party does have its advantages. You will be faced with making a lot of business-changing decisions through this process, one of course is to choose an AML partner to onboard customers digitally. So, companies like APLYiD, FirstAML, GreenID, Scantek, Creditorwatch, and a plethora of new start-up AML RegTechs.

There is a crowd who have handled AML for reporting entities for years. If the law is similar to NZ & the UK, that’s an even bigger win. You will have lots of AML knowledge thrust upon you by marketing and salespeople. The biggest question you will likely face will be: "What software partner do I want to choose first (because you will and can change providers over time) that I believe has got my back in this first year of change and will walk me through this hostile reform landscape like a wise, gnarly-bearded river guide?" Great question.

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