---
title: Can a Tranche 1 business be mixed with Tranche 2 entities under one reporting group?
description: Yes, AUSTRAC's Reporting Group framework allows mixed Tranche 1 and Tranche 2 entities under one lead entity.
---

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# Can a Tranche 1 business be mixed with Tranche 2 entities under one reporting group?

## Yes, AUSTRAC's Reporting Group framework allows mixed Tranche 1 and Tranche 2 entities under one lead entity.

Yes, in principle - AUSTRAC's Reporting Group framework (which replaced the old DBG structure on 31 March 2026) allows entities with different obligation profiles to be brought under one lead entity, one AML/CTF Program and one Risk Assessment. easyAML has set up mixed Tranche 1 / Tranche 2 reporting groups before, though the configuration needs to be planned carefully.

Practical considerations:

- **Lead entity choice.** Usually the entity with the broader obligation set (Tranche 1) is the lead, so the group inherits the more demanding controls.
- **Designated services in the Program.** The single AML/CTF Program must cover both regimes' designated services explicitly - Tranche 1 services have been regulated since 2006 and have more different obligations; Tranche 2 services have new sector-specific guidance.
- **Compliance Officer coverage.** One CO can oversee the group, but they need to understand both regimes' risk profiles. Most groups end up with the CO plus at least one 2IC with sector-specific knowledge.
- **Initial scoping call.** Because the configurations vary, easyAML runs a short fact-checking call before sign-up to map your entities to the right structure and confirm the platform can support them today.

See AUSTRAC's [Summary of changes for current reporting entities](https://www.austrac.gov.au/industry-and-business/about-amlctf-reforms/summary-changes-current-reporting-entities) for the Reporting Group framework.

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