AUSTRAC Tranche 2 for Jewellers and Precious Metals Dealers

If you trade in gold, silver, platinum, diamonds, coloured stones, bullion, or finished jewellery above the threshold, the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 changes the way you do business. Dealers in precious metals and stones are a Tranche 2 sector that AUSTRAC has regulated since 1 July 2026.

The reforms exist because high-value, easily-portable, easily-resold goods have always been a money-laundering favourite. International pressure (FATF) and a string of Australian cases pushed the government to close the gap.

Who is caught

• Wholesalers and retailers of precious metals, bullion, and precious stones
• Jewellery retailers where individual transactions cross the cash-equivalent threshold
• Pawnbrokers handling gold and high-value pieces
• Online and auction-house dealers in the same goods
• Refiners, manufacturing jewellers, and trade-in operators

What an AML/CTF program means for a jeweller

Two written components — an ML/TF risk assessment and AML/CTF policies (governance, training, oversight, and customer due diligence on every qualifying transaction).

• ID and beneficial ownership checks on customers above the threshold
• Source-of-funds enquiry where risk indicators are present
• Threshold transaction reports for cash payments of $10,000 or more
• Suspicious matter reports lodged with AUSTRAC within 3 business days (24 hours for terrorism financing)
• Seven-year record retention for transaction and ID data
• Annual compliance reporting

What is new vs Tranche 1

Tranche 1 has covered banks, money remitters and casinos since 2006. Tranche 2 extends the same architecture to professions and dealers historically outside the net. For jewellers, the practical change is that every high-value transaction now needs a documented compliance trail — not just an invoice.

What contracts and documents need updating

• Customer service agreements and sale terms — disclosing AML/CTF checks, ID requirements, refusal rights, and data handling
• Trade-in and consignment agreements — verifying the seller’s title and source of goods
• Wholesale supply agreements — flowing AML obligations down the chain
• Privacy collection notices — covering ID document storage
• Staff training and incident-handling procedures (AML/CTF policies)

The deadlines and penalties

Tranche 2 commenced 1 July 2026 with a phased uplift. AUSTRAC enrolment is the first gate. Civil penalties run to 100,000 penalty units per contravention for a body corporate; criminal penalties apply for serious breaches like tipping-off.

How an updated Service Agreement helps

Claim Done’s Service Agreement wizard produces a customer or supplier agreement that includes the AML/CTF disclosures, ID and source-of-funds clauses, and the right to refuse or delay a transaction where checks fail. $49 flat fee, delivered as a PDF, ready to deploy across your store.

Next step

Audit your transaction thresholds, enrol with AUSTRAC, and re-paper customer-facing documents now so the compliance lift is incremental rather than emergency.