By Nick Boudrie, LAB Group
Australia’s AML/CTF Amendment Act 2024 is the most significant compliance reform for the financial sector since 2006. For Tranche 1 entities – banks, superannuation funds, wealth and asset managers, brokers, and other existing reporting entities – the compliance deadline of 31 March 2026 is approaching fast. The reforms represent more than a procedural update; they require a fundamental shift in how compliance programs are designed, governed, and executed.
These changes introduce both heightened regulatory risk and a strategic opportunity to modernise operations. Entities that act early can not only meet their obligations but also use the reform as a springboard for operational efficiency and improved client experience.
Key Tranche 1 changes
The reforms will require:
- Risk-based AML/CTF Programs – Replacing the prescriptive Part A/Part B structure with a dynamic, risk-based model tailored to organisational risk appetite.
- Governance uplift – Board-level accountability and mandatory appointment of an AML Compliance Officer.
- Refined CDD Rules – More rigorous, event-triggered customer due diligence, including enhanced value transfer reporting and ongoing monitoring.
- New “Tipping-Off” provisions – Effective 31 March 2025, imposing penalties for disclosure breaches.
By March 2026, all Tranche 1 entities must be fully compliant with these new standards.
Why the stakes are high
Failure to comply carries serious consequences. AUSTRAC has signalled increased enforcement activity, with penalties likely to rise. Beyond regulatory fines, the reforms are vital to avoiding FATF “grey-listing” – a scenario that could damage Australia’s reputation and cost 3–7% of GDP. Operationally, firms that fail to adopt automation risk higher compliance costs, slower onboarding, and client attrition.
Public | LAB Group Services Pty Ltd
LAB Group – Tranche 1 Compliance, built-In
LAB has already embedded the capabilities required under the reforms, ensuring our clients are compliance-ready now. Our solutions reduce manual workload, standardise processes, and strengthen auditability.
Our core Tranche 1 features include:
- PEP/Sanctions screening – Real-time, configurable screening with adverse media integration.
- Risk-Based workflows – Dynamic forms, conditional KYC questions, and automated high-risk jurisdiction detection.
- Advanced case management – Centralised triage, escalation, and override workflows with full audit logs.
- Exclusion list management – Custom lists to reduce false positives while maintaining robust controls.
- Ongoing due diligence – Event-triggered reviews and perpetual KYC cycles.
These capabilities are delivered via LAB Engage, LAB Verify, and LAB Portal – integrated modules connecting directly into registries, CRMs, cash account providers, settlement systems, and wealth platforms for true straight-through processing.
Transforming reform into competitive advantage
Our clients are not only on track for March 2026 compliance – they are using LAB to improve operational performance:
- 98% reduction in compliance errors, cutting remediation workload.
- Onboarding times reduced from many days to minutes, accelerating investment inflows.
- Millions saved annually through automated screening, verification, and case handling.
Proven in the market
LAB is trusted by over 100 Australian stockbrokers, wealth managers, and asset managers, including household names in the Tranche 1 sector. Our track record spans millions of processed applications, deep integrations, and measurable cost savings.
The time to act is now
With the compliance deadline fast approaching, waiting to adapt will only increase cost and disruption. Partnering with LAB means you can address Tranche 1 reforms today, while creating a scalable compliance framework for the future.
Contact us [email protected] to learn how LAB can help you turn regulatory change into operational excellence.
