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← Legal Guides 14 May 2026

AUSTRAC Tranche 2 for Jewellers and Precious Metals Dealers

Dealers in precious metals, stones and high-value jewellery are now AUSTRAC-regulated. Here's what an AML/CTF program looks like and the contracts you need to update.

aml ctf austrac jewellers precious metals service agreement tranche 2

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 Bill 2024 changes the way you do business. Dealers in precious metals and stones are a Tranche 2 sector that AUSTRAC will regulate from 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 — Part A (governance, risk assessment, training, oversight) and Part B (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 24 hours
  • 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 (Part A)

The deadlines and penalties

Tranche 2 commences 1 July 2026 with a phased uplift. AUSTRAC enrolment is the first gate. Civil penalties run to $22 million per contravention for corporate offenders; criminal penalties apply for serious breaches like tipping-off.

How an updated Service Agreement helps

Claim Done’s Service Agreement wizard produces a Tranche 2-ready customer or supplier agreement that includes the AML/CTF disclosures, ID and source-of-funds clauses, the right to refuse or delay a transaction where checks fail, and the record-keeping language AUSTRAC will look for. Flat $79 — DOCX and 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.

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