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Tranche 2 — obligations from 2026

Pubs, clubs and hotels

Hotels, pubs, and licensed clubs that provide certain gambling or payment services become reporting entities under Tranche 2 reforms effective 1 July 2026.

AML/CTF Amendment Act 2024 — Tranche 2 Reform

AML/CTF Obligations

Enrol with AUSTRAC before 1 July 2026 if providing designated gambling or payment services

Conduct an ML/TF Risk Assessment and implement a written AML/CTF program

Conduct CDD on customers engaging in transactions above prescribed thresholds

Lodge SMR reports within 3 business days of forming a suspicion

Lodge TTR reports within 10 business days of a cash transaction at or above $10,000 AUD

Maintain all CDD and transaction records for a minimum of 7 years

Required reports:TTRSMR

Licensed venues must lodge TTR reports within 10 business days of a cash transaction at or above $10,000 AUD. SMR reports must be lodged within 3 business days of forming a suspicion about a customer or transaction.

Typical Customer Risk Profiles

1

Regular large-cash gaming machine players — customers who consistently load high amounts of cash into gaming machines, particularly if they collect winnings by cheque, are exhibiting classic placement behaviour.

2

Customers using third-party funds for gaming — someone who accepts cash from another person before using gaming facilities is almost certainly a smurfing participant and should trigger immediate investigation.

3

High-frequency cash transactions just below reporting thresholds — a customer who consistently transacts just under $10,000 at your venue is likely structuring to avoid TTR obligations.

4

Customers with no apparent legitimate income for the volume of gambling — a customer whose declared or apparent income is inconsistent with their gambling expenditure requires a source of funds inquiry.

Recommended Compliance Pack

Pubs & Clubs Pack

Pre-configured for Pubs, clubs and hotels — KYC rules, risk thresholds, AUSTRAC report templates, CDD workflows, and monitoring rules aligned to your obligations. Ready from day one.

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What's included

System default — customisable

Customer identification and KYC workflows calibrated for gaming and venue transaction thresholds

TTR report templates pre-populated from transaction data with AUSTRAC validation

Structuring detection and gaming pattern alerts for high-risk customer activity

SMR case management for MLRO review and AUSTRAC lodgement

AML/CTF program template for licensed venues with staff training tracking and risk assessment

Example workflow

Default — you can modify steps
1

Customer presents at gaming area

Cash load at or above threshold? CDD triggered. Digital ID check sent or processed on-site.

2

Identity verified

Photo ID captured. Sanctions and PEP screening runs automatically.

3

Gaming pattern recorded

Transaction added to customer's monitoring profile. Amount, frequency, and payout method tracked.

4

Structuring check

Customer's prior transactions reviewed. Multiple loads near $10,000? Alert raised for venue MLRO.

5

TTR generated if applicable

Cash transaction at or above $10,000? TTR auto-populated and queued for review.

6

TTR submitted or SMR filed

TTR submitted within 10 days. Suspicious pattern identified? SMR prepared and filed within 3 days.

Pricing Recommendation

Recommended

Essential

Most licensed venues need threshold-triggered KYC, TTR generation, and SMR capability. The Essential plan covers all core Tranche 2 obligations for pubs, clubs, and hotels.

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Ready to get compliant as a Pubs & Clubs?

Your Pubs & Clubs Pack is configured on day one. 7-day free trial — no credit card, no consultants, no configuration sprints.