If you’re a small business owner in real estate, conveyancing, law or accounting, no doubt by now you’ve heard about Tranche 2 and the upcoming expansion of Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime. While you may already know that changes are coming, what’s still unclear for many is the true cost of becoming compliant (both upfront and ongoing). It’s a question that often arises when we’re out and about discussing AML compliance at industry events.
In this blog, we break down what costs you can reasonably expect, how to make smart choices when preparing your business, and why an all-in-one solution like easyAML can help reduce the compliance burden.
Why is AML/CTF compliance going to cost my business?
It’s important to remember that AML/CTF compliance isn’t a “set and forget” box-ticking exercise. Compliance is an ongoing process that requires regular attention to time, systems, documentation, staff training, and ongoing monitoring to be maintained.
These rules are enforceable (and the penalties for non-compliance are significant). According to the Australian Government’s Regulatory Impact Statement (RIS), businesses affected by Tranche 2 could face upfront compliance costs of up to $28,650, with ongoing costs estimated at $23,250 per year for the average small business.
If you’re a small business owner and your jaw is currently on the floor, that’s the purpose of this blog. Let’s break those costs down and what it’s actually going to cost you and when…
What are the start-up costs associated with AML compliance?
These are the one-off or early-stage investments you’ll need to make to become compliant by 1 July 2026.
1. Legal advice or policy drafting
Unless you have deep regulatory experience in-house (and let’s face it – how many SMEs do?!), you’ll need help drafting your AML/CTF Program. Put simply, your AML/CTF Program is the written document that explains how your business will meet its obligations. It assesses your risk and tailors your processes and policies to match the risk level your business is deemed to be exposed to.
Custom drafting by legal experts can cost between $5,000 and $15,000. Some firms also charge hourly rates for policy reviews or updates.
2. KYC/KYB tools
Many industries impacted by Tranche 2 will either already be completing, or at least aware of, verification of identity (VOI) requirements. Under Tranche 2, however, VOI takes a further step with Know Your Customer (KYC) and Know Your Business (KYB) requirements, as part of your Customer Due Diligence (CDD) obligations. In addition to verifying your client’s identity, you must also identify and verify the beneficial owners using digital ID checks, watchlist screening, and other methods.
Some businesses may choose to use multiple tools for this process. Each provider has their own method of charging, and sometimes the cost is not clearly articulated, so it’s important to be aware of how your chosen provider(s) charges (including any set-up and subscription fees).
3. Risk assessments
As part of your AUSTRAC obligations, you must conduct a risk assessment for your business regarding the designated services you provide. Most businesses will require a risk matrix, a scoring system, and a documented methodology.
Consultants and AML/CTF product providers may offer templates, but implementing and customising these tools can add $3,000–$10,000 to your set-up cost.
4. Staff training
Your staff need to understand the red flags, know when and how to report suspicious matters, and stay up to date as risks evolve. There are strict requirements around training for your team, and CDD completed before training may result in those due diligence enquiries being deemed non-compliant.
Professional training courses can cost $500–$2,000 per staff member, depending on the training service engaged. Businesses must also factor in the cost of lost productivity during training.
5. Systems, software & admin
Whether you use Excel, internal systems, or a dedicated AML/CTF compliance platform, there will be administrative time required to build, track, and manage your compliance. Manual systems can appear inexpensive, but they carry hidden costs (not the least of which is time).
What are the ongoing costs to businesses for AML/CTF Tranche 2?
After set-up, AML/CTF compliance is not a “done and dusted” task. It’s a continuous process that your business will need to revisit often. You’ll need to:
- Reassess risk as your services and client make-up change
- Monitor transactions for red flags
- Report suspicious activity to AUSTRAC
- Keep detailed records for at least seven years
- Review and update your AML/CTF Program
- Maintain an ongoing training schedule for your staff
These tasks all require time, resources, and mental space. According to the RIS by the Attorney General’s Department, the average ongoing cost per business is $23,250 per year, primarily due to staff time, software fees, and external advice.
Again, if this amount shocks you, it’s vital that you fully understand your obligations so that you can make wise choices with your AML/CTF provider partners to reduce the impact of this change on you and your staff, as well as minimise ongoing costs.
Are there ways to control or reduce these costs associated with Tranche 2 compliance?
Yes. But it comes down to making smart choices early. Don’t wait until June 2026 to start researching providers and understanding your obligations.
Option 1: Use one solution, not five
Many small businesses try to piece together multiple providers. For example, one for digital ID & Customer Due Diligence, another for risk assessment & their AML Program, another for reporting, plus outsourced legal advice. This often leads to:
- Higher total cost
- No single source of truth
- Increased error risk
- More stress
Choosing an all-in-one solution like easyAML reduces cost and complexity by combining:
- Identity verification
- Risk assessments
- Ongoing monitoring
- AUSTRAC-ready reports
- Templates, training & support
Not only does this save you money, but it also saves you (significant) time, particularly when it comes to submitting your annual report to AUSTRAC, as there is no need to compile data from multiple disparate platforms and programs.
Option 2: Avoid duplicated costs across businesses
If you own or operate multiple businesses (e.g. a real estate agency + conveyancing firm), a bundled solution can help you:
- Reuse onboarding data across businesses
- Apply consistent risk policies
- Train once, apply across your brands
Leveraging the data collected across different arms of your business, spanning all sectors, can reduce duplication, minimise staff & client frustration, and ultimately make AML/CTF compliance easier and more streamlined. That’s why easyAML is designed to work across entities, saving you time and money.
Option 3: Plan now to avoid panic later
Starting early means you can spread your costs, choose the right provider, and build internal understanding before the July 2026 deadline. Many businesses will scramble at the last minute and pay rush rates for templates, audits, and legal advice. You don’t need to be one of them.
Currently, approximately 15,000 Tranche 1 businesses are registered with AUSTRAC. Come July 2026, with the introduction of Tranche 2, there will be around 80,000, so you don’t want to leave it until the last minute, or you risk running out of time and not receiving the same level of support as those who prepared earlier.
How easyAML helps
easyAML is a comprehensive, end-to-end AML compliance solution designed for small to medium-sized Australian businesses. Our intuitive, industry-leading platform gives you the tools, templates, and support to:
- Set up a compliant AML/CTF Program
- Digitally verify your clients (KYC/KYB)
- Conduct your risk assessment with confidence
- Keep up with ongoing monitoring and reporting
- Stay audit-ready, without the stress
With the easyAML solution, there’s no need to hire expensive consultants or juggle five different platforms. We’ve built the solution that does it all, affordably and clearly.
Want to explore your options?
Compliance doesn’t have to be overwhelming (or overpriced). Join the easyAML Readiness List (with absolutely no obligation to partner with us down the track) to get:
- Early access to tools & templates
- Tranche 2 updates in plain English
- Industry-specific guidance
- Transparent pricing (when it becomes available closer to the Tranche 2 implementation date)
We’ll keep you informed, supported, and ready, without the fear factor.
Join the Readiness List today – https://easyaml.com/