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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

ApproachSetup costAnnual costTime to complyBest for
DIY — AUSTRAC starter kit$0Staff time only2–6 weeksVery simple businesses with time available
Boutique AML consultant$5,000–$15,000$3,000–$8,0003–8 weeksSmall-medium firms wanting expert guidance
Law firm / Big 4$20,000–$50,000+$10,000–$25,000+4–12 weeksComplex, high-risk, multi-service businesses
Klyvon ProFrom $79/month$948–$1,548/yr60 seconds + reviewSmall–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