What is AUSTRAC Tranche 2?

Since 1 July 2026, an estimated 100,000+ additional Australian businesses providing designated services — including many lawyers, accountants, real estate professionals, conveyancers and jewellers — have become AUSTRAC reporting entities under Tranche 2 reforms to the AML/CTF Act 2006. These businesses must enrol with AUSTRAC (the 29 July 2026 transitional enrolment deadline has passed), implement a written AML/CTF program, conduct customer due diligence, and report suspicious matters.

What is the largest AUSTRAC fine in Australian history?

Westpac Banking Corporation — $1.3 billion, ordered October 2020. AUSTRAC alleged over 23 million breaches including failures linked to child exploitation networks. The penalty remains the largest civil penalty in Australian corporate history, surpassing CBA's then-record $700 million fine from 2018.

What are the civil penalties for serious AML/CTF non-compliance?

Civil penalties are determined by the Federal Court and depend on the category of breach, the number of contraventions, and whether non-compliance was systemic. Courts have ordered penalties ranging from $45 million (Tabcorp, 2017) to $1.3 billion (Westpac, 2020). For current penalty unit values and applicable maximums, refer to official guidance at austrac.gov.au.

Has AUSTRAC ever fined a small business?

Yes. The Mount Pritchard community club case (2025) shows AUSTRAC pursues smaller businesses, not only major banks and casinos. AUSTRAC commenced civil penalty proceedings against a community club for serious and systemic non-compliance. With 100,000+ businesses now in the regime since 1 July 2026 (Australian Government RIS estimate), enforcement against small businesses is expected to increase significantly.

What triggers an AUSTRAC enforcement action?

The most common triggers: no written AML/CTF program, failure to conduct customer due diligence, failure to lodge Suspicious Matter Reports (SMRs) when suspicion arises, failure to lodge Threshold Transaction Reports (TTRs) for cash over $10,000, failure to enrol with AUSTRAC, and poor governance. The pattern in every major case is systemic failure — not isolated incidents.

Are AUSTRAC fines and enforcement actions public?

Yes — all enforcement actions are published publicly on AUSTRAC's website. This includes civil penalty orders, enforceable undertakings, infringement notices, and remedial directions. For Tranche 2 businesses, this means a fine against your law firm, accounting practice, jewellery store or real estate agency is visible to your clients, your professional body (Law Society, CPA Australia), your competitors, and the general public. The reputational damage typically exceeds the financial penalty.

How long does an AUSTRAC investigation take?

Major civil penalty proceedings typically take 12–36 months from AUSTRAC commencing proceedings to a Federal Court order. However, AUSTRAC can issue infringement notices and remedial directions much faster — sometimes within weeks of identifying a breach. Importantly, AUSTRAC investigations are not always announced publicly until proceedings are filed — businesses may be under investigation without knowing it.

Does having a prior AUSTRAC fine protect you from future enforcement?

No. The 2026 Tabcorp investigation demonstrates this clearly. Tabcorp was fined $45 million in 2017 and is now the subject of a second formal AUSTRAC enforcement investigation. Each compliance period is assessed independently. AUSTRAC's expectation is ongoing compliance — not a one-time fix.

What is the difference between a civil penalty order and an enforceable undertaking?

A civil penalty order is issued by the Federal Court and involves a financial penalty — the amounts on this register. An enforceable undertaking is an agreement where the entity commits to specific remediation actions without always involving a financial penalty, but both are published publicly and involve binding obligations.

Does Klyvon include sanctions screening?

Targeted financial sanctions screening is now part of your AML/CTF program obligation under the AML/CTF Rules 2025 — not a separate exercise. Klyvon's generated program includes the required policy controls for targeted financial sanctions. You will still need to screen clients against the DFAT Consolidated List as part of your CDD workflow. Klyvon does not run live screening checks, but your program documents exactly when and how to do it.

Live Register · Updated August 2026

Federal Court Enforcement History

AUSTRAC penalties and enforcement actions

Every civil penalty order, enforceable undertaking and enforcement action AUSTRAC has taken since 2006 — documented in full. Federal Court civil penalty orders total $2.56 billion AUD (aggregate of Federal Court orders 2018–2025, including CBA $700M, Westpac $1.3B, and subsequent actions). Since 1 July 2026, many lawyers, accountants, real estate professionals, conveyancers and jewellers providing designated services have entered the AML/CTF regime as reporting entities under Tranche 2 reforms.

This page tracks AUSTRAC civil penalty orders, enforceable undertakings and other enforcement actions documented since 2006. Enforcement outcomes can include Federal Court civil penalties and other published outcomes. Penalty amounts depend on the category of breach, the number of contraventions and the circumstances of the case.

Federal Court civil penalty orders · AUSTRAC-related proceedings · 2006–2026

$2,562,000,000

AUD · Civil penalty orders only · Excludes enforceable undertakings · Active proceedings ongoing

Largest single penalty order

$1.3B

Civil penalty orders on register

Estimated new Tranche 2 entities

100K+

Enforcement actions are public

Yes

Enrolment deadline

29 Jul 26 (passed)

Civil Penalty Orders

Federal Court — ordered and confirmed penalties only

$1.3BAUD · Record fine

$700MAUD · Then-record fine

$450MAUD · Combined penalty

$67MAUD

$45MAUD · Then-record fine

Additional proceedings are on foot against The Star Entertainment Group, Tabcorp Holdings (second investigation), Entain Group, and Mount Pritchard & District Community Club. These matters are excluded from this register unless and until a final Federal Court penalty amount is determined.

Tranche 2 brings lawyers, accountants, jewellers, real estate agents, and conveyancers into the AML/CTF regime for the first time — obligations commenced 1 July 2026, with the AUSTRAC transitional enrolment deadline of 29 July 2026 now passed.

What Tranche 2 means for your business

Australia's AML/CTF regime has expanded to professional services since 1 July 2026.

Many lawyers, accountants, real estate professionals, conveyancers and jewellers providing designated services became AUSTRAC reporting entities on 1 July 2026 and must now be enrolled with AUSTRAC; the 29 July 2026 transitional deadline has passed. AUSTRAC publishes all enforcement actions publicly — regulatory action is visible to clients, professional bodies and competitors.

Penalty scale

Significant

Actions are public

Yes

Enrolment deadline

29 Jul 2026 (passed)

Enforcement exposure

Active now

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Reference

Frequently asked questions

Everything Australian small businesses need to know about AUSTRAC enforcement and Tranche 2.

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Penalty Calculator

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AUSTRAC Tranche 2 — Complete Guide

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SMR Guide

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