Scope & Sectors FAQ

Are all of our services regulated under Tranche 2?

No. AUSTRAC's position is that obligations depend on whether your business provides one or more designated services that have a geographical link to Australia. That means firms should map their actual services carefully rather than assume the whole business is automatically covered.

Do the new AML/CTF laws apply to our whole business?

Not necessarily. The obligations apply if your business provides one or more designated services with a geographical link to Australia. You should assess the specific services you offer, rather than assume your entire business is automatically regulated.

What does "geographical link to Australia" mean?

A designated service generally has a geographical link if it is provided through a permanent establishment in Australia. Simply having an Australian bank account or office address does not automatically mean the requirement is met.

Do these rules apply to small businesses?

Yes. The AUSTRAC regulations are generally based on the designated services you provide, regardless of the size of your business. If a solo real estate agent handles property sales, they must comply just like a multinational firm, although their program should be scaled appropriately to their lower volume.

Does this mean I can't accept international clients?

No, you are still free to operate internationally. However, engaging with high-risk jurisdictions simply triggers Enhanced Customer Due Diligence (ECDD).

What kinds of professional services are now designated services?

AUSTRAC says the new professional designated services include assistance with transactions involving real estate, body corporates or legal arrangements; receiving or managing a person's property for transaction purposes; helping organise equity or debt financing; selling shelf companies; helping create or restructure companies or legal arrangements; arranging for people to act in certain corporate or trust roles; and providing a registered office or principal place of business address.

What real estate activities are captured?

AUSTRAC says real estate designated services relate to brokering the sale, purchase or transfer of real estate. This is likely to include buyer's agents, seller's agents, and some developers selling house-and-land packages, off-the-plan apartments, and subdivision blocks.

In a real estate transaction, who is the customer for AML/CTF purposes?

For real estate services, both the buyer and the seller are considered customers. This means AML/CTF obligations may apply to both parties in the same transaction.

Does AML/CTF apply if a property is transferred without payment?

Yes. AML/CTF obligations can still apply even if there is no payment or consideration, such as transfers between family members.