For Business Brokers

AML/CTF program for business brokers — AUSTRAC Tranche 2 from July 2026

Business sales sit on FATF's mid-tier risk list for a reason — they combine high transaction values, opaque trust and corporate vehicles, and often a buyer or seller looking for speed over scrutiny. From 1 July 2026 brokers facilitating these transactions are reporting entities.

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Compliance Challenges for Business Brokers

Facilitating the sale, transfer or restructure of a business is a designated service from 1 July 2026. AutoAML drafts a broker-specific AML/CTF program in minutes.

Business sale is a named designated service

The Tranche 2 reforms specifically capture 'acting on behalf of a client in the sale, transfer or restructure of a business'. A brokered sale is the textbook example — buyer and seller introduction, contract preparation, due-diligence coordination and settlement support are all in scope.

Trust deposits and earnest money trigger TTR obligations

Earnest-money deposits and escrow arrangements that pass through your trust account are subject to the $10,000 TTR threshold (s 43) for cash equivalents. Foreign-currency deposits compound the monitoring obligation.

Asset sales and share sales create different CDD scopes

Selling the assets of a business and selling the shares of the corporate vehicle that owns it are very different beneficial-ownership exercises. Your Part B must script the difference so staff don't run identical CDD on structurally different deals.

Cross-border buyers are a routine high-risk channel

Inbound foreign capital — particularly from jurisdictions on AUSTRAC's high-risk country list — is common in mid-market business sales. Enhanced CDD, jurisdiction risk-rating and source-of-wealth inquiry are core procedures, not edge cases.

What Business Brokers Need for Compliance

The AML/CTF Act 2006 (Cth) and the AML/CTF Rules require all reporting entities to maintain these documents and procedures.

AML/CTF Program with Part A and Part B sections — s 81 of the Act

ML/TF Risk Assessment scoped to business sale, transfer and restructure mandates

CDD procedures distinguishing asset sale, share sale and trust-vehicle transactions

Beneficial-ownership identification at the 25% threshold for corporate parties

Trust-account transaction-monitoring rules covering escrow and earnest-money deposits

TTR procedure for $10,000+ cash equivalents (s 43)

Enhanced CDD for foreign buyers, PEPs and high-risk jurisdictions

7-year record retention covering CDD evidence, listing files and transaction logs (s 107)

Deadline & Applicability

Business brokers acting on behalf of clients in the sale, transfer or restructure of a business become reporting entities on 1 July 2026 under the AML/CTF Amendment Act 2024. The Australian Institute of Business Brokers has flagged Tranche 2 readiness as a 2026 priority for member education.

Last reviewed: 18 April 2026 · Information is general guidance, not legal advice.

How AutoAML Helps Business Brokers

AI-Generated Documents

All 13 compliance documents drafted from your service mix and risk profile — Part A, Part B, risk assessment, CDD scripts, the lot.

Team & Audit Trail

Invite your team, assign Compliance Officer roles, and keep a tamper-evident audit log AUSTRAC supervisors can read.

SMR & TTR Built-in

Reporting workflows, training tracking, annual review reminders and document version control — so the program stays alive after day one.

Frequently Asked Questions

Business Brokers & AUSTRAC: common questions

Are business valuers in scope under Tranche 2?

Pure valuation work is generally not a designated service. The trigger is acting on behalf of a client in the sale or transfer itself — preparing information memoranda, facilitating introductions, negotiating terms, or coordinating settlement. A valuer who only produces a report and steps back is typically outside scope.

How does it work for off-market or pocket-listing deals?

The marketing channel is irrelevant. If you facilitate the transaction — whether broadcast-listed, off-market or by direct introduction — your CDD and reporting obligations apply identically. Off-market deals often warrant more attention because the buyer pool is curated and the rationale for the introduction needs documenting.

Do we need CDD on both buyer and seller?

Yes. Both are clients of yours within the meaning of the designated service. Your program should script different intake depths — sellers are typically known, buyers often less so — but neither side can be skipped.

What about commission paid in cryptocurrency or precious metals?

AUSTRAC treats non-cash payment forms with elevated scrutiny when the underlying transaction is conventional. Your Part B should specifically address non-cash commission and may need to lodge an SMR depending on the circumstances and the source of the payment.

Does this overlap with a real-estate licence?

Many business sales include a leasehold or freehold real-property component. Where it does, both Tranche 2 designated services apply (business sale and real-property dealing) — you do not double-up programs but your single program must address both lines.

What's the penalty regime?

Civil penalties under the AML/CTF Act run into the tens of millions of dollars per contravention for body corporates, and AUSTRAC has been aggressive in pursuing failure-to-enrol and failure-to-report cases. For a small brokerage, the more practical risk is bank de-risking — most major banks now decline to open accounts for unregistered Tranche 2 entities.

Related industries under AUSTRAC Tranche 2

Many firms work across more than one designated-service category. Check the related sectors below.

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