Designated Services Subject to AML/CTF Compliance in Australia

Designated Services Subject to AML/CTF Compliance in Australia

Designated Services Subject to AML/CTF Compliance in Australia

Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act 2006 requires certain reporting entities providing specific designated services to perform AML/CTF compliance. This list of reporting entities performing designated services has been expanded through the AML/CTF Amendment Act 2024. This illustration provides a comprehensive list of designated services covered under the AML/CTF Act.

Designated Services Provided by Current Reporting Entities

• Financial Services:- Banks, building societies, credit unions, credit issuers or acquirers, Authorised Deposit-Taking Institutions (ADIs), lenders or lender assignees, factoring businesses, forfaiting businesses, finance leasing businesses, account providers, trustees, store value card issuers, insurers, or other such entities working in such capacities mentioned in the AML/CTF Act 2024 are included under the definition of financial services.
• Dealing in Bullion:- Businesses buying or selling bullion.
• Gambling Service:- Businesses receiving or accepting bets, making or placing bets on behalf of another party, intermediaries, controlling an eligible gaming machine venue, exchanging gaming chips, betting instruments or tokens for money or virtual assets, paying out winnings and prices for a game, account providers subjected to the activities covered in the AML/CTF Act 2024 are included under the definition of gambling service.

Designated Services Provided by Tranche Two Entities

The Australian government has taken a significant step by passing the AML/CTF Amendment Act 2024 to curb the gap that existed in previous laws. The new act covers the following Tranche Two Entities providing designated services:

• Dealing in Precious Metals, Stones, and Products:- Businesses buying or selling precious metals, precious stones, precious products or any combination thereof with a total value greater than AUD 10,000 are considered dealers in precious metals, stones, and products.
• Real Estate Services:- Businesses providing brokering services in the sale, purchase or transfer of a real estate property and businesses selling or transferring a real estate property without a broker/agent are covered under the definition of real estate services.
• Professional Services:- Lawyers, Conveyancers, Accountants, Trust and Company Service Providers
  Lawyers and Conveyancers providing assistance to their customers or acting on behalf of their customers in the planning and execution of transactions involving the sale, purchase, or transfer of real estate are said to be in the business of providing designated professional services.
  Trust and Company Service Providers (TCSPs) involved in the sale or transfer of shelf companies, creation of body corporates and legal arrangements, and providing assistance in planning and execution of transactions involving the sale, purchase or transfer of such body corporate or legal arrangements or the financial instruments thereof, are said to be in the business of providing professional services. TCSPs which receive, hold, control or manage their customer’s assets at the time of assistance are also said to be providing designated professional services.
  Professionals who, in the course of their business, act as or arrange for any other person to act as a director or secretary of a company, a partner in a partnership, a trustee in an express trust, a power of attorney or nominee shareholder of a body corporate or legal arrangement, or any such equivalent positions are said to be providing designated professional services.
  Businesses that provide a registered office address or principal place of business address of a body corporate or legal arrangement are said to be providing designated professional services.

Designated Services Provided by Other Reporting Entities

• Virtual Asset-related Services:- In addition to Tranche Two Entities, Virtual Asset Service Providers will also come under the AML/CTF regime through the AML/CTF Amendment Act 2024.
• Prescribed Services:- Businesses that provide services mentioned in the regulations are prescribed services