With 1 July 2026 now weeks away, Australian law firms are in varying stages of Tranche 2 readiness, and the gap between where most firms are and where they need to be is significant.

Many firms are trying to solve this with a mix of spreadsheets, manual processes, and vaguely-remembered CPD sessions. That's understandable. But the stakes are too high, and the deadline is too close to wing it.

Here's what we hear constantly: "We know we need to find the right tech and processes. We're just not sure exactly how to start that process."

That's precisely why Legl has partnered with AML Sorted, a specialist AML compliance firm led by Amy Bell, one of the UK's most respected legal AML experts, bringing 30 years of experience to bear in Australia. Amy and her team at AML Sorted are already working with law firms across Australia to help with regulatory guidance, training expertise and process setup. 

Because here's the truth: technology alone won't get you there. And advice alone won't either. You need both.

What's actually at stake

Tranche 2 isn't just a compliance exercise. From 1 July, law firms providing designated services must enrol with AUSTRAC, develop a firm-level AML/CTF programme, train staff, perform customer due diligence on all new and existing active clients, and maintain records for seven years. Non-compliance carries penalties of up to $33M.

But the harder question isn't "what are the penalties?" It's "what does it actually take to get this right, and keep processes compliant?"

This is a big shift from stakeholders across law firms. We briefly cover some key considerations for different stakeholders across firms. 

For Managing Partners and CEOs

Poor technology selection here has a direct cost to profitability. If fee-earners are sucked into new manual compliance processes they don't understand and can't bill for, that erodes the bottom line fast. The flip side is significant: firms that get this right unlock a real competitive advantage. A smooth, digital client experience (which is branded, professional, frictionless) drives higher satisfaction and referrals. Firms in the UK that have invested in best-in-class digital onboarding have seen referral rates increase by 10% year-on-year. Getting compliant and getting competitive aren't in tension. They're the same move.

For Compliance Officers and MLROs

There is no one-size-fits-all approach to AML compliance, and anyone offering you one should give you pause. Understanding the nuances of enhanced due diligence, PEPs and sanctions screening, and unravelling complex trust or company structures requires genuine expertise and a risk assessment genuinely tailored to your firm's practice areas, client base, and risk profile. The regulatory guidance exists. The interpretation of it, for your specific firm, requires someone who has been doing this for decades and technology that can be customized to meet your specific requirements.

For COOs and Practice Managers

This is a significant people, process, and technology shift, and it will require real change management support. There will be teething issues. Choosing the right technology, and pairing it with the right depth of compliance expertise, will be critical to making the transition work. The firms that come out of this well will be laser-focused on simplicity. They will be focused on making processes clear for lawyers and support staff alike, reducing friction at every step, and building workflows that people will actually follow.

For Finance Directors

There's no avoiding the fact that getting compliant introduces new costs from advisory support, technology, training and beyond. But the calculus is more interesting than it first appears. Better technology reduces the time your team spends on manual tasks. Automation means fee-earners spend more time on billable work. And the investment in digital client experience compounds: it builds the referral engine, reduces client acquisition costs, and positions the firm for growth. The question isn't whether to invest, it’s how to find the right technology and advisory partners for scale.

For Lawyers and Staff

It's completely understandable to feel some apprehension about the changes ahead. New requirements, new processes, new responsibilities. But the firms that approach this well will give their people tools that actually help, not add burden. Platforms like Legl let lawyers complete client and matter risk assessments in minutes, with the whole process built into the workflow rather than bolted on at the end. Getting ahead of this, and getting confident with the technology quickly, is the best thing you can do.

The Legl + AML Sorted approach

AML Sorted builds the foundations. The risk framework, the AML/CTF programme, the staff training. Your firm knows what it needs to do, and, critically, why.

Legl makes it operationally real. Digital onboarding, CDD workflows, risk assessments, audit trails, compliance dashboards. Your firm can prove it’s consistently meeting requirements with regulation.

Together, that's compliance that works — not just on paper, but in practice, at scale, without eroding your team's time or your clients' experience.

Whether you're starting from scratch or looking to strengthen what you've already built, we'd love to help.

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Legl is a client lifecycle management platform used by over 600 law firms across the UK and Australia. Get in touch if you'd like to find out more about how we can help your firm ahead of the Tranche 2 deadlines.

AML Sorted is a specialist AML compliance firm founded by Amy Bell, a solicitor with 30 years of experience in AML compliance and regulation.