If you operate a financial services business in Australia and the services you provide fall within the definition of designated services in Section 6 of the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act you are a Reporting Entity and will need to comply with the Act and the AML/CTF Rules.
Who do the AML/CTF Obligations Apply to?
In general, if you provide any of the following types of financial services and have a geographical link to Australia, some or all of the obligations in the AML/CTF Act and Rules will apply to you.
Services provided by Authorised Deposit-taking Institutions (ADIs) and other financial service providers:
- AFSL holders which arrange for clients to receive a designated service;
- Life insurance services;
- Custodial/depository services;
- Superannuation fund management;
- Securities markets and investment services;
- Providing pension/annuity services or retirement savings accounts;
- Lease/hire purchase services;
- Loans or finance;
- Preparing payroll for other businesses;
- Issuing money/postal orders;
- Issuing stored value cards; or
- Issuing travellers cheques.
Services provided which also require registration with AUSTRAC:
- Digital Currency Exchange;
- Remittance services (money transfers);
- Currency exchange services.
Services Provided by ADIs:
- Account and deposit-taking services;
- Chequebook access facilities;
- Debit card access facilities;
- Accepting electronic funds transfers.
To have a geographical link to Australia, one of the following must apply to you:
- Providing designated services at or through a permanent establishment in Australia;
- You are a resident of Australia providing designated services at or through a permanent establishment in a foreign country;
- You are a subsidiary of a company that is resident in Australia and providing designated services at or through a permanent establishment in a foreign country.
If you would like further information or assistance, please contact Sophie Grace directly.