Tranche 2: Understanding it in an Australian context

In Australia, tranche 2 australia, the second phase in the implementation of advanced AML/CTF, builds on the foundations of Tranche 1, The aim of Tranche 2, is to address the evolving risks and challenges of the financial sector and promote a more comprehensive, sophisticated approach in combating money laundering.

Features of Tranche 2, AML/CTF measures in Australia:

CDD (Enhanced Customer Due diligence): Tranche 2, which emphasizes a new approach to due diligence for customers, requires financial institutions to dig deeper into their identification and verification. They must also understand more about the transaction patterns, the risk profiles and the source of funds to be able to assess and mitigate any potential risks.

Technology Integration: Australia recognizes, as do many other developed countries, the importance of technology for strengthening AML/CTF. Tranche 2 encourages institutions to adopt advanced technologies, such as machine learning, artificial intelligence and data analytics, to enhance their detection capabilities and enable them to respond in real time to suspicious activity.

Tranche 2: Non-Financial sector inclusion: Tranche 2 expands the regulatory scope of Tranche 1 to include non-financial industries such as real estate and high-value goods trading.

International Collaboration: Tranche 2 puts a high emphasis on international collaboration, aligned with global efforts to fight transnational financial crime. Australia engages actively with international organisations and collaborates to share information, track transactions across borders, and strengthens the global battle against money laundering.

Tranche 2: Periodic Risk Assessments Tranche 2 encourages financial institutions to regularly assess risks in order to remain proactive and effective.