> ## Documentation Index
> Fetch the complete documentation index at: https://docs.clearaml.com.au/llms.txt
> Use this file to discover all available pages before exploring further.

# ClearAML for accountants: Tranche 2 AML guide

> How Australian accounting firms meet Tranche 2 AML/CTF obligations using ClearAML — KYC checks, trust verification, risk assessments, and AUSTRAC reporting.

From 1 July 2026, Australian accounting firms that provide "designated services" are reporting entities under the AML/CTF Act. This guide explains which services trigger your obligations, what you need to do, and how ClearAML supports your firm through every step of the compliance workflow.

## Are accountants caught by Tranche 2?

Yes. From 1 July 2026, accounting firms providing any of the following designated services must comply with the AML/CTF Act:

* **Managing client money or assets** — holding, investing, or transferring funds on behalf of a client
* **Company formation and management** — forming companies, acting as a director or providing a registered office address
* **Trust management** — acting as a trustee or managing an existing trust structure
* **Business advisory services** — advising on the purchase or sale of a business

<Info>
  Not every accountant is captured. If your firm only prepares tax returns and does not manage money, form entities, or manage trusts, you may not be a reporting entity. Use ClearAML's eligibility checker to confirm your obligations.
</Info>

## What AUSTRAC expects from your firm

Before providing any designated service, you must complete four key steps:

1. **Enrol with AUSTRAC** as a reporting entity (enrolment opened 31 March 2026; deadline 29 July 2026)
2. **Appoint a Compliance Officer** responsible for your AML/CTF Program
3. **Implement a written AML/CTF Program** tailored to your firm's risk profile
4. **Verify the identity of every client** receiving a designated service (KYC/CDD)

<Warning>
  Obligations are live from **1 July 2026**. Penalties for corporations reach **\$22.2 million per contravention**. Starting KYC on existing clients before the deadline is strongly recommended.
</Warning>

## How to use ClearAML as an accountant

<Steps>
  <Step title="Import or create your client profiles">
    Sync with your practice manager, upload a CSV of existing clients, or add clients manually. ClearAML auto-populates data you already hold so you don't have to re-enter information. See the [bulk import guide](/guides/importing-clients) for details.
  </Step>

  <Step title="Verify identity and structure">
    Send a secure identity verification link to your client's phone with one click. For individual clients, ClearAML performs a biometric liveness check and DVS document verification. For companies and trusts, the system automatically looks up ASIC registers and unwraps the ownership structure.
  </Step>

  <Step title="Run an automated risk assessment">
    Once identity is confirmed, ClearAML screens the client against global PEP and sanctions watchlists and generates a Risk Assessment PDF. The risk score is calculated dynamically based on client type, industry, geography, and the services you provide.
  </Step>

  <Step title="Review and store the audit trail">
    Every check, status change, and risk decision is time-stamped in a forensic audit log. Your records are stored securely in Australian data centres and retained in compliance with the 7-year record-keeping requirement.
  </Step>
</Steps>

## Accounting-specific workflows

<CardGroup cols={2}>
  <Card title="Trust structure verification" icon="sitemap">
    ClearAML treats trusts as a dedicated entity type. You can verify the trustee (individual or corporate), trace beneficiaries, and document the structure — all within a single client profile.
  </Card>

  <Card title="SMSF compliance" icon="landmark">
    Self-Managed Super Funds are supported as a specific entity type. Verify the trustees (individual or corporate) and beneficiaries according to AUSTRAC rules, with a clear audit trail attached to each fund.
  </Card>

  <Card title="KYB for companies" icon="building">
    For company clients, ClearAML performs full Know Your Business (KYB) verification. The UBO & Entity Mapping feature visualises exactly which individuals ultimately own or control the company.
  </Card>

  <Card title="Risk assessment for financial advisory" icon="chart-bar">
    Customise the risk matrix to your firm's specific designated services and risk appetite. High-risk clients are flagged automatically based on the rules you define.
  </Card>
</CardGroup>

## Key features for accounting firms

<AccordionGroup>
  <Accordion title="Forensic audit logs">
    Every click, status change, and risk decision is recorded in a tamper-evident forensic ledger. This gives you an always-ready audit trail for AUSTRAC reviews and independent audits.
  </Accordion>

  <Accordion title="UBO & entity mapping">
    Visualise complex ownership relationships. See clearly which individuals own which companies, trusts, or partnerships in an interactive ownership graph — essential for beneficial owner tracing under Tranche 2.
  </Accordion>

  <Accordion title="Firm-wide risk matrix">
    Configure your firm's risk parameters to match your AML/CTF Program. Set thresholds for client types, industries, and geographies so that high-risk clients are flagged the moment they are created.
  </Accordion>

  <Accordion title="AUSTRAC reporting">
    Generate the reports you need for your annual compliance report, independent reviews, Suspicious Matter Reports (SMRs), and Threshold Transaction Reports (TTRs).
  </Accordion>

  <Accordion title="Staff training (free CPD)">
    ClearAML's built-in learning management system trains and certifies your staff on AML obligations at no extra cost — so you don't need to pay for external CPD courses to cover your team.
  </Accordion>
</AccordionGroup>

## Frequently asked questions

<AccordionGroup>
  <Accordion title="Does this platform meet the Tranche 2 requirements?">
    Yes. ClearAML is built specifically for accountants, lawyers, and real estate professionals (DNFBPs). The workflows, risk assessments, and audit trails are designed to meet AUSTRAC's Tranche 2 requirements.
  </Accordion>

  <Accordion title="Does this work for SMSFs?">
    Yes. ClearAML treats SMSFs as a specific entity type, allowing you to verify the trustees (individual or corporate) and beneficiaries according to AUSTRAC rules.
  </Accordion>

  <Accordion title="Can I customise the risk assessment questions?">
    Yes. You can tailor the risk matrix to fit your firm's specific AML Program and risk appetite, allowing you to match the assessment to your documented designated services.
  </Accordion>

  <Accordion title="Can I import my existing client list?">
    Yes. Bulk-import clients via CSV or sync with Xero Practice Manager. See the [importing clients guide](/guides/importing-clients) for step-by-step instructions.
  </Accordion>

  <Accordion title="Is client data stored in Australia?">
    Yes. All data is encrypted at rest and in transit using bank-grade 256-bit encryption and hosted exclusively in Australian data centres (Melbourne region).
  </Accordion>
</AccordionGroup>