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AUSTRAC Tranche 2 · Compliance Cost Guide
How much does AML compliance cost in Australia?
The Australian Government's own Regulatory Impact Statement estimated the average AML/CTF compliance preparation cost at $23,250 per business using external consultants. But you have options. This guide compares every approach — DIY, boutique consultant, Big 4 law firm, and compliance software — with real figures so you can make an informed decision.
Written by the Klyvon Compliance Team · Melbourne, Australia · General guidance only, not legal advice
$23,250
Government RIS average
One-time setup using consultants
$5k–$50k+
Consultant range
Boutique to Big 4
From $79/mo
Klyvon Pro
60-second program generation
The government's own estimate: $23,250
The Australian Government published a Regulatory Impact Statement (RIS) alongside the AML/CTF Amendment Act 2024. Based on submissions from industry and compliance professionals, the RIS estimated that the average cost for a newly captured small business to prepare for AML/CTF compliance using external consultants is $23,250 one-time, with annual ongoing compliance costs of $5,500–$8,000.
This estimate covers: an initial risk assessment workshop (typically 4–8 hours of consultant time), drafting a Part A and Part B AML/CTF program, developing CDD procedure templates, and delivering an initial staff training session. It does not include the cost of ongoing regulatory monitoring, annual program reviews, or additional staff training in subsequent years.
Source: Australian Government Regulatory Impact Statement, Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth), October 2024.
Full cost comparison
| Approach | Setup cost | Annual cost | Time to comply | Best for |
|---|---|---|---|---|
| DIY — AUSTRAC starter kit | $0 | Staff time only | 2–6 weeks | Very simple businesses with time available |
| Boutique AML consultant | $5,000–$15,000 | $3,000–$8,000 | 3–8 weeks | Small-medium firms wanting expert guidance |
| Law firm / Big 4 | $20,000–$50,000+ | $10,000–$25,000+ | 4–12 weeks | Complex, high-risk, multi-service businesses |
| Klyvon Pro | From $79/month | $948–$1,548/yr | 60 seconds + review | Small–medium firms in all 5 Tranche 2 industries |
Source: Australian Government RIS 2024; industry survey data; Klyvon published pricing.
What is included in the cost of compliance?
The total cost of AML/CTF compliance for a newly captured Tranche 2 business typically breaks down into these components:
ML/TF risk assessment
$0 (internal time)
$2,000–$5,000
Included
AML/CTF program (Part A + B)
$0 (internal time)
$3,000–$8,000
Included
CDD templates
$0 (internal time)
$500–$2,000
Included
Compliance officer letter
$0 (template)
$300–$1,000
Included
Staff training
$0 (DIY)
$1,000–$3,000
Included
AUSTRAC enrolment guide
$0 (free)
Often included
Included
DIY
Consultant
Klyvon
The real cost of non-compliance
Framing compliance purely as a cost misses the other side of the ledger. Non-compliance with the AML/CTF Act 2006 carries civil penalties of up to $33,000,000 per contravention for bodies corporate and $18,780 per day for non-enrolment. AUSTRAC publishes all enforcement actions publicly — the reputational consequences extend beyond the financial penalty.
See the full list of past enforcement actions on the AUSTRAC Penalty Register.
Frequently asked questions
How much does AML compliance cost in Australia?
The Australian Government's Regulatory Impact Statement (RIS) for the AML/CTF Amendment Act 2024 estimated the average one-time compliance preparation cost at $23,250 per business when using external consultants. This covers risk assessment, program development, CDD procedure design, and initial staff training. Annual ongoing compliance costs were estimated at $5,500–$8,000 per business. Source: Australian Government RIS, AML/CTF Amendment Act 2024.
Do I need an AML consultant to comply with AUSTRAC Tranche 2?
No. AUSTRAC does not require that AML/CTF programs be prepared by a consultant or lawyer. Many small businesses use AUSTRAC's free sector starter kits as a foundation, or use compliance software like Klyvon that generates a firm-specific program in 60 seconds. For complex businesses or those with higher risk profiles, review by a qualified AML/CTF adviser is recommended but not mandatory.
What does a boutique AML consultant charge?
Boutique AML/CTF consultants typically charge $5,000–$15,000 for a complete compliance program for a small professional services firm. This generally includes a risk assessment workshop, program document drafting, CDD procedure templates, and a training session. Ongoing retainer costs range from $3,000–$8,000 per year for program reviews and regulatory updates.
How much do law firms and Big 4 charge for AML compliance?
Large law firms and Big 4 accounting firms charge significantly more: typically $20,000–$50,000+ for initial program development, with ongoing advisory fees of $10,000–$25,000+ per year. These services are generally more appropriate for complex businesses with high-risk client profiles, multiple service lines, or cross-border operations.
Is Klyvon cheaper than using a consultant?
Yes, significantly. Klyvon generates a firm-specific AML/CTF program (Part A and Part B) in 60 seconds from $79/month — approximately $948/year — compared to $5,000–$23,250+ for a consultant. The program is based on AUSTRAC's official sector guidance and is customised to your specific services and risk profile. It requires review and adoption by your compliance officer before implementation.
From $79/month — 7-day free trial
Klyvon generates your complete AML/CTF program in 60 seconds. No consultant required.
Start free trial →General guidance only · Not legal advice · Source: Australian Government RIS 2024 · austrac.gov.au