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AUSTRAC Regulatory Guide

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Chapter 11 - Designated services - Financial services

Account and deposit-taking services

Relevant items in table 1	Items 1-5
Brief description of services	providing an account opening service allowing a person to become a signatory to a new or existing account allowing transactions to be conducted on an account accepting money on deposit allowing transactions to be conducted on deposits

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What are account and deposit-taking services?

What is meant by 'account'?

The term 'account' is defined in section 5 of the AML/CTF Act as including:

a) a credit card account;

b) a loan account (other than a credit card account); and

c) an account of money held in the form of units in:
i. a cash management trust; or
ii. a trust of a kind prescribed by the AML/CTF Rules.

To avoid doubt, it is immaterial whether:

d) an account has a nil balance; or

e) any transactions have been allowed in relation to an account.

Betting account services are set out in table 3 of section 6 of the Act and are discussed in a separate section of this chapter.

What is meant by 'account provider'?

The term 'account provider' is defined in relation to the term 'account', which is separately defined and means a person with whom an account is held.

What is meant by 'deposit taking'?

The terms 'deposit', 'deposit taker' and 'deposit taking' are not defined by FATF, the AML/CTF Act or the Replacement Explanatory Memorandum to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 Bill.

In general terms, a 'deposit' can be described as a credit that is applied to an account and a 'deposit taker' is the person with whom the account is held (that is, the account provider). 'Deposit taking' is the act of receiving a deposit for an account that is held on behalf of a person.

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What are the designated services relating to account and deposit-taking services?

This section discusses account and deposit-taking services in the context of items 1-5 in table 1 of the AML/CTF Act, as shown in the following table. These services are relevant to the majority of reporting entities that fall within the financial services sector.

Item	Provision of designated service	Customer
1	in the capacity of account provider, opening an account, where the account provider is: a) an authorised deposit-taking institution (ADI); or b) a bank; or c) a building society; or d) a credit union; or e) a person specified in the AML/CTF Rules (25)	the holder of the account
2	in the capacity of account provider for a new or existing account, allowing a person to become a signatory to the account, where the account provider is: a) an ADI; or b) a bank; or c) a building society; or d) a credit union; or e) a person specified in the AML/CTF Rules	the signatory
3	in the capacity of account provider for an account, allowing a transaction to be conducted in relation to the account, where the account provider is: a) an ADI; or b) a bank; or c) a building society; or d) a credit union; or e) a person specified in the AML/CTF Rules	both: (a) the holder of the account; and (b) each other signatory to the account
4	accepting money on deposit (otherwise than by way of deposit to an account), where the deposit-taker is: a) an ADI; or b) a bank; or c) a building society; or d) a credit union; or e) a person specified in the AML/CTF Rules	the person in whose name the deposit is held
5	in the capacity of a deposit-taker for a deposit, allowing a transaction to be conducted in relation to the deposit, where the deposit-taker is: a) an ADI; or b) a bank; or c) a building society; or d) a credit union; or e) a person specified in the AML/CTF Rules	the person in whose name the deposit is held

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Exemptions

Currently there are no general exemptions or special circumstances that apply to account and deposit-taking services.

What are the risk indicators for account and deposit-taking services?

A range of typologies indicate that account and deposit-taking services can be used to facilitate money laundering and/or the financing of terrorism. The following circumstances may indicate a risk of money laundering or terrorism financing in connection with such services (26):

limited or no identification information held about account owners
limited or no information about beneficial owners of an account
complex account structures
multiple related accounts
frequent or elaborate movement of funds between related accounts
activity inconsistent with customer's profile
cash deposited domestically, with the funds subsequently withdrawn from ATMs offshore
high volume of transactions within a short period
funds received from or remitted to countries of concern
frequent and/or unscheduled cash deposits to loan accounts
structuring of cash transactions to avoid reporting thresholds
transferring funds into third-party accounts
use of third parties to deposit funds into accounts
use of intermediaries to make large cash deposits
use of gatekeepers (for example, accountants and lawyers) to structure deposits
use of non-resident accounts.

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Case studies

Case study 1

Cash deposits into own bank accounts

A syndicate involved in alleged money laundering activities was the focus of a major law enforcement investigation. To launder the funds, a member of the syndicate was depositing cash into their personal bank account and, on the same day, transferring funds to bank accounts belonging to another member of the syndicate.

Over an 11-month period, one of the persons of interest had a total of AUD264,000 deposited into her bank accounts. She also withdrew AUD122,000 from these same bank accounts at several different branches around a single metropolitan area.

Over the same period, another member withdrew approximately AUD380,000 in cash. On several occasions when money was withdrawn, the same amount would be deposited into accounts belonging to other members of the syndicate. The money was usually withdrawn in amounts of more than AUD10,000. As this member of the syndicate was a highly valued customer of the financial institution, he was given preferential treatment and his activity was not deemed to be suspicious. He also received an international transfer of AUD1.7 million from the Channel Islands. Law enforcement established that this individual had received over AUD6.2 million into his account from the Channel Islands since 1995.

AUSTRAC received multiple suspect transaction reports (SUSTRs) concerning regular large cash deposits. The SUSTRs also detailed refusals to complete appropriate reporting forms. The information contained in these SUSTRs supplied by industry was of critical benefit to law enforcement.

Indicators: deposits and withdrawals of funds on same day; withdrawals made at several different branches; transfer into account of large amount of money from a known tax haven.

Case study 2

Accountant diverting legitimate invoices to an account in his name

An accountant employed by an educational institution and a company was involved in defrauding people of approximately AUD292,000.

The accountant would divert payments for legitimate invoices to an account in his name. When reminders for the invoices were received, he would organise payments to the creditors. The accountant would write an invoice for double payment and direct one payment to himself. The accountant also created false invoices and payments to his own accounts from the company using a similar methodology.

A suspect transaction report lodged by a credit union detailed that the accountant had been conducting large-value cash and cheque deposits and withdrawals. The credit union noted that none of these transactions was over the AUD10,000 reporting threshold, and that the nature of the transactions did not correspond with the known financial profile of this individual.

A further analysis of AUSTRAC information revealed wire transfers to Afghanistan and Egypt. These transactions were for amounts of between AUD4,000 and AUD11,000. All were conducted through a single bank branch within a short timeframe.

Indicators: large value cash and cheque deposits and withdrawals below the reporting threshold (structuring); multiple wire transfers to overseas countries.

Additional resources

AUSTRAC guidance note: Opening an account

Frequently asked questions

Q. Is there a minimum number of transactions before a designated service involves an 'account'?

A. There is no minimum number of transactions for the purposes of providing an account.

Q. If a loan application is approved and records are created in advance of the customer actually operating the account, is that caught by designated service 1 or 3?

A. It depends on the circumstances, and it may not be caught by either designated service 1 or 3. AUSTRAC has issued a guidance note 'Opening an account', which should assist reporting entities to understand when an account is created under various circumstances.

Q. If an account is provided by an entity that is not an ADI, a bank, a building society or a credit union and there are no AML/CTF Rules specifying other persons, does that mean the AML/CTF Act does not apply?

A. Some designated services include qualifications regarding who they apply to. For example, designated services 1-5 all relate only to an ADI, a bank, a building society, a credit union or a person specified in the AML/CTF Rules. However, most other designated services apply to anyone who provides the service described. If a designated service (other than the provision of an account) is provided by an entity, the AML/CTF Act applies, regardless of whether that entity also provides an account.

Q. Our business operates accounts but does not handle physical currency. Are we still caught under the AML/CTF Act?

A. Obligations under the AML/CTF Act are defined by the provision of one or more of the designated services listed in the tables in the Act. It is irrelevant whether or not the account provider accepts or provides physical currency.

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Cash carrying/payroll services

Relevant items in table 1	Items 51-53
Brief description of services	collecting or holding currency on behalf of another party preparing payrolls on behalf of another party delivering currency (including payrolls) to another party

What are cash carrying/payroll services?

Cash carrying and payroll services are broad terms to describe a range of activities.

What is cash carrying and holding?

Collecting and delivering physical currency includes all activities associated with transporting physical currency, irrespective of the value involved, where the person collecting and/or transporting the physical currency is not the owner of that currency and undertakes such service in the course of carrying on a business of collecting physical currency.

Holding physical currency includes all activities associated with the custody of physical currency, irrespective of the value involved, where the person holding the physical currency is not the owner of that currency and undertakes such service in the course of carrying on a business of holding physical currency.

What are payroll services?

Payroll preparation includes all activities associated with preparing salary/wages packets that contain, either in whole or part, physical currency that has been collected, where the provider of the designated service is carrying on a business of preparing payrolls.

Payrolls are usually prepared from information provided by a client who is an employer, or is an agent of an employer for the purposes of paying salaries and/or wages that contain physical currency.

What are the designated services relating to cash carrying?

This section discusses collecting, holding or delivering physical currency in the context of items 51 and 53 in table 1 of the AML/CTF Act, as shown in the following table.

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Item	Provision of designated service	Customer
51	collecting physical currency, or holding physical currency collected, from or on behalf of a person where: a) the service is provided in the course of carrying on a business of collecting or holding physical currency; and b) the physical currency was not collected by the provider of the service as consideration for the supply of goods (within the meaning of the Trade Practices Act 1974); and c) the physical currency was not collected by the provider of the service as consideration for the supply of services (within the meaning of the Trade Practices Act 1974) other than the service of collecting or holding physical currency; and d) the physical currency was not collected as a donation to a charity or charitable institution	the person
53	delivering physical currency (including payrolls) to a person, where the service is provided in the course of carrying on a business of delivering physical currency	the person

What are the designated services relating to payroll preparation?

This section discusses preparing a payroll in the context of item 52 in table 1 of the AML/CTF Act, as shown in the following table.

Item	Provision of designated service	Customer
52	preparing a payroll, on behalf of a person, in whole or part from physical currency collected, where the service is provided in the course of carrying on a business of preparing payrolls	the person

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What is physical currency?

The term 'physical currency' is defined in section 5 of the AML/CTF Act as meaning:

the coin and printed money (whether of Australia or of a foreign country) that:

(a) is designated as legal tender; and

(b) circulates as, and is customarily used and accepted as, a medium of exchange in the country of issue.

Section 5 of the AML/CTF Act defines 'money' to include physical currency.

In the interpretative note to FATF Special Recommendation IX (cash couriers), the term 'currency' refers to banknotes and coins that are in circulation as a medium of exchange.

Examples of collecting, delivering and holding physical currency

The following are examples of collecting physical currency and delivering physical currency that AUSTRAC considers to be covered by designated services 51 and/or 53:

a cash carrier, security firm, contractor or courier collecting physical currency from, or delivering physical currency to, a financial institution branch and transporting it to or from another location on behalf of that financial institution
a cash carrier, security firm, contractor or courier transporting an ATM cash canister which contains physical currency to or from an offsite ATM, or to or from another location (for example, a depot of the cash carrier)
a cash carrier, security firm, contractor or courier transporting a bag, which is said to contain physical currency, to or from the client's premises, to or from the client's financial institution, or to or from another location on behalf of the financial institution
a cash carrier, security firm, contractor or courier transporting a bag, which is said to contain physical currency, to or from the client's premises, to or from the client's financial institution, or to or from another location on behalf of the client
a cash carrier, security firm, contractor or courier transporting physical currency to or from an air or sea port, for on-forwarding to or from an overseas location on behalf of a client
a cash carrier, security firm, contractor or courier holding physical currency in its depots, where that currency is owned by a financial institution or a commercial client.

Exemptions

Currently, there are no general exemptions or special circumstances that apply to cash carrying and payroll services.

What are the risk indicators for currency collection and delivery?

A range of typologies indicate that currency collection and delivery services can be used to facilitate money laundering and/or the financing of terrorism. The following circumstances may indicate a risk of money laundering or terrorism financing in connection with providing such services (27):

wide variation in the value of physical currency collected or delivered
inconsistent pattern of denominations in physical currency collected or delivered
changes in frequency of collections or deliveries
gaps in know your client (KYC) information
large 'one-off' services
irregular contact with the client
business activities of the client inconsistent with the value of physical currency being collected or delivered.

What are the risk indicators for payroll preparation?

A range of typologies indicate that payroll services can be used to facilitate money laundering and/or the financing of terrorism. The following circumstances may indicate a risk of money laundering or terrorism financing in connection with such services (28):

client provides the physical currency used to prepare the payroll
frequent and substantial changes in the value of payrolls
frequent changes to the names and values for individual payroll envelopes.

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Case study

Case study 3

Money laundering by retail industry

A chain of department stores contracted a cash carrier to undertake prime count and cash register reconciliation activities. Each evening, road crews called at each of the customer's retail locations to collect the cash and cash register records, which were transported to the carrier's depot where the cash was processed. The following morning, the cash carrier lodged the processed funds into its own bank account and credited the customer's bank account with a single electronic payment.

Over several months, the value of funds collected fluctuated widely. Cash carrier staff became concerned as there were a number of unexplained large transactions which appeared to be inconsistent with the client's retail business.

The cash carrier submitted a suspect transaction report to the financial intelligence unit and a subsequent investigation by authorities identified a number of instances where the funds were the proceeds of criminal activity.

Indicators: large cash transactions inconsistent with usual business activities; use of third parties to process cash.

Frequently asked questions

Q. Our security firm provides static guards and patrols for charity events. As a free community service, we often transport the cash takings from the event location to the charity's bank. Is this type of free community service meant to be captured by the AML/CTF Act?

A. The fact that a service is provided free of cost is not a factor in determining whether obligations under the AML/CTF Act apply.

If the service is provided in the course of carrying on a business of collecting or holding physical currency, then the Act applies.

Q. Our courier company often transports packages for clients without full knowledge of the contents. If the client does not tell us that the package contains cash, do we have to ask them in order to avoid breaching any obligations under the AML/CTF Act?

A. The AML/CTF Act does not impose an obligation requiring a courier to establish whether or not items being transported contain physical currency.

Where it is obvious that packages being transported do contain physical currency and the services are provided in the course of carrying on a business of collecting physical currency, the service will be captured by the AML/CTF Act.

Q. Is there an exemption for small amounts of cash being collected or delivered?

A. No. There are no thresholds that apply to the AML/CTF Act obligations in relation to collecting, holding or delivering physical currency.

Q. Cash carrying is not our core business and we provide cash carrying services only on an ad hoc basis for a limited number of well-known clients. Are we still caught by the AML/CTF Act?

A. If the service is provided in the course of carrying on a business of collecting or holding physical currency, then the Act applies.

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Currency exchange services

Relevant items in table 1	Item 50
Brief description of services	exchanging one currency (foreign or Australian) for another (including exchanging denominations of the same currency)

What is a currency exchange service?

A currency exchange service for the purposes of the AML/CTF Act involves the physical exchange of currency, where currency from one country is converted into currency of another country, or where currency is exchanged within the same currency.(29) Most commonly, currency exchange occurs at bureaux de changes, banks, hotels and airports within a retail environment.

What are the designated services relating to currency exchange?

This section discusses currency exchange in the context of item 50 in table 1 of the AML/CTF Act, as shown in the following table.

Item	Provision of designated service	Customer
50	exchanging one currency (whether Australian or not) for another (whether Australian or not), where the exchange is provided in the course of carrying on a currency exchange business	the person whose currency is exchanged

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For the purposes of this section, the term 'physical currency' is relevant to providing a currency exchange service. Physical currency is defined in section 5 of the AML/CTF Act to mean the coin and printed money (whether of Australia or of a foreign country) that:

(a) is designated as legal tender; and

(b) circulates as, and is customarily used and accepted as, a medium of exchange in the country of issue.

Section 5 of the AML/CTF Act defines 'money' to include physical currency.

Exemptions

Chapter 14 of the AML/CTF Rules provides certain exemptions for carrying out customer identification procedures for certain designated services, including currency exchange where the currency exchange involves:

the transfer of money into or out of an account; and
the account provider is an ADI, building society, bank, credit union or representative office of a foreign bank.

The reporting entity is exempt from carrying out the applicable customer identification procedure if the value of the currency (Australian or foreign equivalent) is less than $1,000.

Important

The above exemption does not apply where a reporting entity determines, in accordance with its enhanced customer due diligence program, that it should obtain and verify any information about a customer in accordance with its customer identification program.

The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2009 (No. 4) has added Chapter 31 into the AML/CTF Rules, providing that the AML/CTF Act does not apply to the provision of currency exchange services connected with the provision of traveller accommodation where the value of the currency exchanged does not exceed certain thresholds.

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What are the risk indicators for currency exchange services?

A range of typologies indicate that currency exchange services can be used to facilitate money laundering and/or the financing of terrorism. Exchanging foreign currency could be used in the placement stage of money laundering. In the case of physical currency exchange, transactions are quite often anonymous as customers are not regular customers of the business.

The following circumstances may indicate a risk of money laundering or terrorism financing in connection with currency exchange services: (30)

client does not enquire about exchange rate
frequent exchanges of cash into other currencies, where there appears to be no logical explanation for such activity
customer exchanges small denomination notes for larger denomination notes in foreign currency
customer presents with multiple small currency notes
foreign currency exchanges immediately followed by wire transfers
drafts cashed for foreign currency, for example, euros, US dollars.

Case studies

Case study 4

Funds remitted overseas to launder the proceeds of crime

Information was received by a law enforcement agency indicating that between AUD50 million and AUD60 million was laundered by a money exchange business in Sydney. A joint taskforce investigation commenced looking at the operators and directors of the business. The money exchange business was operating an underground banking system which received a large number of 'orders' from overseas associates, by telephone, facsimile, SMS and email. Typically, these orders included details of an Australian bank account number, an account holder's name, a banking branch or financial institution, an amount of Australian currency to be deposited, and an exchange rate. If the requested deposit exceeded AUD10,000 it was made as two or more structured deposits to avoid being reported.

In this matter, at least one source of the cash for these deposits came from a person who was arrested and charged in relation to the seizure of over 27 kilograms of ecstasy. During the period of the investigation, it was noticed that other sources of cash for the money exchange business included owners and operators of a number of wholesale and retail jewellery businesses. When questioned about these transactions, they provided evasive and untruthful answers about their dealings with the money exchange business. In addition to the jewellery operation in Australia, a further business was being operated in South-East Asia which used the remitted funds to purchase precious stones.

Indicators: foreign exchange involved in providing services inconsistent with usual business activity; structured deposits.

Case study 5

High denomination notes used for drug importation

AUSTRAC provided law enforcement officers with information which was used to identify persons, their aliases and their associates involved in large-scale drug importation and distribution. AUSTRAC assisted in identifying money laundering methods used by the offenders. The offenders purchased euro notes in amounts of EUR500 from a money exchange. It is believed these notes were purchased because they were less bulky when being carried out of Australia by the offenders. In excess of AUD2 million has been identified as being purchased with a view to being carried out of the country over two years by the offenders. The euros were destined for countries in South-East Asia.

Indicators: cash purchase of high denomination euro notes.

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Frequently asked questions

Q. If an individual wants to exchange one currency for another (for example Japanese yen for US dollars), is this considered a designated service?

A. It depends on the circumstances. If the transaction is between two individuals in a personal capacity (that is, it is not considered a venture or concern in trade or commerce) it is not considered a designated service. However, exchanging one denomination for another denomination is a designated service under the AML/CTF Act when carrying on a currency exchange business and the value of the currency being exchanged is $1,000 or more (Australian or foreign equivalent). For an explanation on 'carrying on a business', refer to AUSTRAC PLI 4.

Q. If an individual exchanges less than $1,000 and pays by credit card, does the exemption from carrying out the applicable customer identification procedure apply?

A. Yes, the exemption also applies to currency exchanges that involve a credit card payment for the purchase of currency below $1,000. However, the exemption does not apply where a reporting entity determines that it should obtain and verify information about a customer in accordance with its AML/CTF program. For example, where the currency exchange provider determines that the situation warrants the application of their enhanced customer due diligence program.

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Loan services

Relevant items in table 1	Items 6, 7, 48 and 49
Brief description of services	establishing new loans allowing transactions on loans providing guarantees for loans making payments to a loan as a guarantor

What is a loan/loan guarantee?

Generally speaking, a loan is a financial transaction in which one party (the lender, or assignee) agrees to give another party (the borrower) a specific amount of money which must be paid back in full at some future date.

For the purposes of the AML/CTF Act, a loan includes:

an advance of money
the provision of credit
satisfaction of another person's debt
any transaction which in substance is a loan of money.

Examples of types of loans are personal, mortgage, margin, student or premium funding loans. A description of these types of loans is provided later in this section.

A loan guarantee is a promise by a third party to repay the loan to the lender if the borrower fails to do so.

What are the designated services relating to loan/loan guarantee services?

This section discusses loans and loan guarantee services in the context of items 6, 7, 48 and 49 in table 1 of the AML/CTF Act, as shown in the following table. Under the AML/CTF Act, making a loan, allowing the borrower to conduct transactions in relation to a loan, and guaranteeing a loan constitute designated services, irrespective of the loan value involved, but are subject to the qualifications set out in the definition of the relevant designated services.

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Item	Provision of designated service	Customer
6	making a loan, where the loan is made in the course of carrying on a loans business	the borrower
7	in the capacity of: (a) lender for a loan; or (b) assignee (whether immediate or otherwise) of the lender for a loan; allowing the borrower to conduct a transaction in relation to the loan, where the loan was made in the course of carrying on a loans business	the borrower
48	guaranteeing a loan, where the guarantee is given in the course of carrying on a business of guaranteeing loans	both: (a) the lender; and (b) the borrower
49	in the capacity of guarantor of a loan, making a payment to the lender, where the guarantee was given in the course of carrying on a business of guaranteeing loans	both: (a) the lender; and (b) the borrower

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Types of loans

A personal loan is provided to an individual for personal use. It is usually unsecured and based on the borrower's credit history and perceived ability to pay.

A mortgage loan is a loan secured against real estate. If for any reason the customer cannot repay the loan, the lender can sell the customer's real estate to recover (part of) the money loaned.

A margin loan allows a person to borrow money to invest in shares and other financial products, using existing investments, such as shares, as security. Margin loans are offered by a wide range of financial institutions.

A student loan allows an individual to borrow money to cover study-related costs. Usually, there are no application fees, no ongoing monthly service fees, no early repayment fees, and a lower rate of interest compared to a standard personal loan. The providers of this type of loan often delay the requirement for repayments (usually until the study has been completed). The majority of student loans in Australia are guaranteed by the Australian Government.

A premium funding loan is a short-term loan that allows a borrower to spread the cost of insurance premiums over a period of time (usually 6-12 months) instead of making one large payment, and is usually provided for the financing of business insurance.

Premium funders typically use other parties (such as insurance brokers) as intermediaries to recommend the loan products to customers and facilitate the administrative processes to set up the loan. However, the premium funder is the lender and hence the reporting entity providing this designated service.

Exemptions

The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2009 (No. 4) has added Chapter 39 into the AML/CTF Rules, providing an exemption for reporting entities from carrying out customer identification procedures for designated services involving the provision of general insurance premium funding loans.

What are the risk indicators for loan services?

A range of typologies indicate that loan services can be used to facilitate money laundering and/or the financing of terrorism. The following circumstances may indicate a risk of money laundering or terrorism financing in connection with such services: (31)

rapid repayment of loans
loans repaid using mainly cash
multiple loans obtained over a short period
loans for an unusual purpose
loans where the security offered far exceeds the amount of the loan
the loan applicant is clearly unable to service the loan
cash offered as the primary security
loans between family members and associates for no apparent commercial reason
loans applied for on behalf of another party
a proposed loan being inconsistent with the applicant's personal or commercial activities.

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Case study

Case study 6

Drug proceeds used to repay finance loans

A newly appointed credit manager at a car loan company was concerned about one of his customers. The customer had recently bought a luxury sports car worth about USD55,000. He obtained a five-year loan for USD40,000 through the credit company, and paid the balance in cash.

The credit manager checked historical records and discovered that the customer had several loans over the previous six years; all for the same amount of money and all involving a large proportion of cash as a deposit. More significantly, in a number of the cases the loans had been repaid early in cash. The credit manager decided to report his concern to the senior management of the loan company. After assessing the facts, management decided to disclose the case to the national financial intelligence unit (FIU).

The FIU searched their databases and very quickly linked the customer to a long-established criminal organisation. The unit forwarded the disclosure to an operational team in the police force, which was already targeting the organisation. The team obtained a court order to examine all relevant records at the loan company. It became clear that the customer was selling the newly bought cars to private buyers and small garages, and obtaining cheques from these new owners. Further investigation revealed a single bank account into which all cheques gained from selling the cars were paid.

It appeared that the customer was working at the criminal organisation's laundering division. He was entering cash from the sale of drugs into the banking system by means of the initial cash deposit to the car loan firm, and clearing the loan with a second cash sum. The cheques from customers and small businesses he sold the cars to would appear to any bank employee examining the account to be legitimate sources of income. The criminal organisation simply saw the loss made on both the loan and the drop in resale value as a cost to be borne in exchange for cleaned funds that would avoid law enforcement attention.

Identifying the bank account enabled an accurate assessment of the criminally laundered funds to be made. The financial information collected allowed the financial investigators on the operational team to produce a more accurate benefit of crime statement. (32)

Indicators: multiple loans with large cash deposits over a period of time to fund car purchases.

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Additional resources

Draft AML/CTF Rule relating to premium funding loans for a general insurance policy

Frequently asked questions

Q. We provide loans on a non-profit basis. Are we a reporting entity under the AML/CTF Act?

A. It is AUSTRAC's view that where these lending activities are on such a scale that they are part of an entity's general activities, these services fall within the definition of 'carrying on a loans business'. For further information relating to the phrase 'carrying on a business' or 'carrying on a loans business', please refer to AUSTRAC PLI 4.

Q. Are mortgage brokers reporting entities under the AML/CTF Act?

A. Whether or not a mortgage broker is a reporting entity under the AML/CTF Act depends on whether they are providing one or more of the designated services specified in section 6 of the Act. Mortgage brokers who merely act as agents for lenders are not reporting entities under the AML/CTF Act (the lender is the reporting entity) unless they are providing a designated service outside their agency agreement.

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Securities markets/investment services

Relevant items in table 1

Items 33, 35 and 54

Brief description of services

issuing or selling securities and derivatives
on behalf of others acquiring or disposing of securities, derivatives or foreign exchange contracts

What are securities markets and investment services?

What is a security?

Securities include:

debt securities (generally issued for a fixed term and redeemable by the issuer at the end of that term, for example, debentures and bonds)
equities (shares in the capital stock of a company. The holder of an equity is a shareholder, owning a share of the issuer)
hybrid securities (combining some of the characteristics of both debt and equity securities, for example, preference shares and convertible bonds).

The term 'security' is defined in the AML/CTF Act as having 'the meaning given by section 92 of the Corporations Act 2001 (33) (for this purpose, disregard subsections 92(3) and (4) of that Act)', which includes:

(a) debentures, stocks or bonds issued or proposed to be issued by a government; or

(b) shares in, or debentures of, a body; or

(c) interests in a managed investment scheme; or

(d) units of such shares.

The term does not include:

(a) a derivative (as defined in chapter 7 of the Corporations Act 2001), other than an option to acquire by way of transfer a security covered by paragraph (a), (b), (c) or (d); or

(b) an excluded security. (34)

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What is a derivative?

Derivatives are financial instruments which change in value in response to changes in underlying variables. The term 'derivative' refers to how the price of these contracts is derived from the price of some underlying security or commodity or from some index, interest rate or exchange rate. The main types of derivatives are futures, forwards, options and swaps.(35)

The term 'derivative' is defined in the AML/CTF Act as having the same meaning as in chapter 7 of the Corporations Act 2001. Specifically, section 761D of the Corporations Act 2001 states that:

(1) ... a derivative is an arrangement in relation to which the following conditions are satisfied:

(a) under the arrangement, a party to the arrangement must, or may be required to, provide at some future time consideration of a particular kind or kinds to someone; and

(b) that future time is not less than the number of days, prescribed by regulations made for the purposes of this paragraph, after the day on which the arrangement is entered into; and

(c) the amount of the consideration, or the value of the arrangement, is ultimately determined, derived from or varies by reference to (wholly or in part) the value or amount of something else (of any nature whatsoever and whether or not deliverable), including, for example, one or more of the following:

(i) an asset;

(ii) a rate (including an interest rate or exchange rate);

(iii) an index;

(iv) a commodity.

(2) Without limiting subsection (1), anything declared by the regulations to be a derivative for the purposes of this section is a derivative for the purposes of this chapter. A thing so declared is a derivative despite anything in subsections (3) and (4). (36)

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What is the securities market?

The securities market is a general description of entities engaged in trading stocks, shares or other financial assets for others on a commission or transaction fee basis. It includes entities engaged in issues trading (37) or acting as securities dealers. Designated services that may be provided by entities include acquiring or disposing of securities, derivatives or foreign exchange contracts, and issuing or selling securities or derivatives. A security under the Corporations Act 2001 includes an interest in a managed investment scheme, where that scheme is listed or unlisted.

What is an investment service?

An investment is not defined in the AML/CTF Act, however, its general meaning can be described as acquiring an asset for the purpose of producing income and/or capital gains for its owner.(38) Providing 'investment services' captures a range of activities including trading in securities, derivatives, foreign exchange contracts and managed investment schemes, which are dealt with in this chapter.

Investment services can also include other aspects of financial planning and products, such as superannuation. Entities which provide investment services should consider all the services they provide and consult other sections of this chapter where relevant.

What is a foreign exchange contract?

For the purposes of this section, a 'foreign exchange contract' is defined in section 5 of the AML/CTF Act to mean a contract:

(a) to buy or sell currency (whether Australian or not); or

(b) to exchange one currency (whether Australian or not) for another (whether Australian or not).

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What are the designated services relating to securities markets, derivatives, foreign exchange and investment services providers?

This section discusses securities markets, derivatives, foreign exchange and investment service providers in the context of items 33, 35 and 54 in table 1 of the AML/CTF Act, as shown in the following table.

Item	Provision of designated service	Customer
33	in the capacity of agent of a person, acquiring or disposing of: (a) a security; or (b) a derivative; or (c) a foreign exchange contract; on behalf of the person, where: (d) the acquisition or disposal is in the course of carrying on a business of acquiring or disposing of securities, derivatives or foreign exchange contracts in the capacity of agent; and (e) the service is not specified in the AML/CTF Rules	the person
35	issuing or selling a security or derivative to a person, where: (a) the issue or sale is in the course of carrying on a business of issuing or selling securities or derivatives; and (b) in the case of an issue of a security or derivative - the issue does not consist of the issue by a company of either of the following: (i) a security of the company (other than an interest in a managed investment scheme); or (ii) an option to acquire a security of the company (other than an option to acquire an interest in a managed investment scheme); and (ba) in the case of an issue of a security or derivative - the issue does not consist of the issue by a government body of a security of the government body or of an option to acquire a security of the government body; and (c) in the case of an issue of a security or derivative - the issue is not an exempt financial market operator issue; and (d) such other conditions (if any) as are set out in the AML/CTF Rules are satisfied	the person
54	in the capacity of holder of an Australian financial services licence (AFSL), making arrangements for a person to receive a designated service (other than a service covered by this item)	the person

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Acquisition or disposal by an agent

Item 33 applies where a person acts in the capacity of an agent of a person, their customer, in acquiring or disposing of a security, derivative or foreign exchange contract.

Item 33 typically applies to AFSL holders who are authorised to carry out broker-type activities as agents for another person in acquiring or disposing of securities (for example, shares) and are market participants as defined in the Australian Securities Exchange market rules.

Managed investment schemes

AML/CTF Regulations (39)were made to ensure that the issue of an interest in a managed investment scheme is covered by the definition of the designated service under item 35. These regulations took effect on 31 January 2008. Further information about managed investment schemes is available from the AUSTRAC website. (40)

Special AML/CTF programs

Reporting entities that provide only the designated service falling within item 54 have reduced obligations under the AML/CTF Act in relation to certain provisions. Reporting entities providing only the item 54 designated service may adopt a 'special' AML/CTF program which needs to contain the entity's applicable customer identification procedure, but does not need to meet the requirements of Part A of a standard AML/CTF program. (41)

Exemptions

Subsection 36(3) of the AML/CTF Act states that reporting entities which provide a designated service under item 54 of table 1 in section 6 are exempt from ongoing customer due diligence requirements. However, if a person is providing designated services under items 54 and 33, the AML/CTF program must comprise both Parts A and B.

The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2009 (No. 4) has added Chapter 38 into the AML/CTF Rules, providing an exemption for reporting entities from carrying out customer identification procedures for designated services involving the sale of low-value parcels of shares where the proceeds of sale are passed on to charitable organisations.

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What are the risk indicators for securities markets and investment services?

A range of typologies indicate that securities markets and investment services can be used to facilitate money laundering and/or the financing of terrorism. The following circumstances may indicate a risk of money laundering or terrorism financing in connection with such services: (42)

the client details are vague or difficult to verify
the client has an unusual desire for anonymity or discretion in their affairs
the client is involved with companies incorporated in known tax havens
the client shows an unusual interest in the internal controls and processes of the stockbroking firm
the client sells or purchases investments without apparent concern for commercial disadvantage
the client is involved in unusually complex legal structures with no economic or logistical rationale
the client requests to sell large amount of stocks on condition of cash payment
the client appears to be using multiple or serial stockbrokers
the client manages their investments through a solicitor or accountant
the client holds accounts without any apparent financial or logistical benefit for doing so
the client instructs the broker to make payments to third party, when that third party is resident in an overseas high-risk jurisdiction
elaborate movement of funds through different accounts
funds transferred overseas from a trading account without any apparent financial benefit for doing so
a high volume of transactions within a short period
investments in stocks, bonds, investment trusts etc., with use of large amount of low-value bills (including foreign currency)
investment cheques issued to a family member
investment funds sent to high-risk jurisdictions
large cash deposits used for investment, purchasing shares or made into trading accounts
large sums credited into accounts from countries of interest
a long period of account inactivity followed by sudden liquidation
multiple accounts with correspondence sent to the same address
purchase of securities to be held by the financial institution in safe custody, where this does not appear appropriate given the client's apparent worth
substantial investments paid for via incoming wire transfers
transactions through an account suspected of being a shell company account
a trading account receives funds directly from high-risk jurisdictions
a transaction inconsistent with the client's profile
a transaction involves a bank account in offshore jurisdiction
transactions on a trading account appear to be only creating the impression of trading
unexplained income inconsistent with the customer's economic situation
use of multiple names to conduct similar activity.

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Case studies

Case study 7

Investment of fraudulent funds in the securities market

A brokerage firm opened several accounts for a group of 12 linked individuals, including a non-resident account that recorded very large movements of money and was apparently used to centralise most of the suspected flows, totalling more than USD18 million.

The launderers used two mechanisms:

the accounts of some of the parties involved were credited with large sums received from countries of concern, which were invested in the stocks of listed companies in Country A; and
the accounts of the individuals concerned were credited with sums from regions of concern which were transferred to the non-resident account, the first accounts being used as screens.

The securities buy/sell mechanism was used to filter the flows through the broker and, subsequently, the 'clearer' and custodian. Once filtered, the funds were sent to locations in regions with deficient anti-money laundering systems, and offshore financial centres.

Investigations revealed that the co-opted broker had been used to launder the proceeds from various forms of fraud and the manager of the brokerage firm served as a relay for the criminal organisations involved.

Indicators: use of multiple accounts; including non-resident account; large movements of funds through non-resident account; large sums of money from countries of concern credited to individuals' accounts before being transferred on to non-resident account.

Case study 8

Use of trading account to place proceeds of crime

An investigation into an individual's trading through a Contracts For Difference (CFD) account via a brokerage firm resulted in proceeds of crime restraining orders being placed on assets. A CFD product is a form of derivative in which an agreement is made to exchange the difference in value of a particular share (or other financial instrument) between the time at which a contract is opened and the time at which it is closed. The product allows a trader to buy and sell in any market, to profit from rising and falling prices and to establish a deposit or margin to gain exposure to markets without tying up capital. Any profits/dividends from the CFD derivative are domestically transferred/debited to the individual's conventional bank account.

The subject of the investigation registered via the internet and used false identification documents, such as a false citizenship certificate and drivers licence, to open the trading account.

The individual became the subject of a suspect transaction report which detailed activity involving the structuring of cash deposits into an account and, in some instances, deposits being made on the same day at branches in two different locations.

The investigation identified that the account had traded and increased in value substantially. It was subsequently restrained through proceeds of crime restraining orders. AUSTRAC data assisted in firstly identifying the matter and then commencing proceeds action.

Indicators: structuring of cash deposits into trading account; use of false ID documents to open trading account; trading of derivatives with large sums of money.

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Additional resources

AUSTRAC guidance on managed investment schemes - www.austrac.gov.au/man_inv.html

Frequently asked questions

Q. What is a managed investment scheme?

A. For the purposes of the AML/CTF Act, a managed investment scheme is a scheme that has the following features:

people contribute money or money's worth as consideration to acquire rights (interests) to benefits produced by the scheme
any of the contributions are to be pooled, or used in a common enterprise, to produce financial benefits, or benefits consisting of rights or interests in property, for the people (the members) who hold interests in the scheme
the members do not have day-to-day control over the operation of the scheme; or
a time-sharing scheme.

For the precise legal definition of managed investment scheme, please refer to the Corporations Act 2001.

Q. What is AUSTRAC's policy in relation to pre-commencement customers of a managed investment scheme?

A. Even though managed investment schemes are captured by the AML/CTF Act from 31 January 2008, any new customers to whom interests in a managed investment scheme were issued by a company issuer between 12 December 2007 and 31 January 2008 would not be pre-commencement customers (as defined in section 28 of the AML/CTF Act). However, it is AUSTRAC policy to treat such customers as pre-commencement customers. To give effect to that policy, AUSTRAC has issued a declaration under section 248 of the AML/CTF Act.

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Superannuation and approved deposit funds

Relevant items in table 1

Items 40-45

Brief description of services

accepting contributions, roll-overs or transfers for new and existing members
cashing out an interest held by a member

The AML/CTF Act captures superannuation funds and approved deposit funds under items 40 to 43, first home saver accounts (FHSAs) under items 43A and 43B, and retirement savings accounts (RSAs) under items 44 and 45 in table 1 of the AML/CTF Act.

A superannuation fund provider is one type of entity that may offer a FHSA. This product may also be offered by life insurers, friendly societies, banks, building societies and credit unions. Similarly, RSAs may be offered by entities such as banks, building societies, credit unions and life insurance companies. The obligations set out in the AML/CTF Act generally apply to any provider of individual designated services, unless otherwise specified. (43)

Important

Self managed superannuation funds are excluded from the superannuation-related designated services, and are not covered by the AML/CTF Act.

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What are superannuation and approved deposit funds?

Superannuation funds (44) and approved deposit funds (45) are funds with particular tax advantages. They are vehicles in which an individual can save and invest money until their retirement, or withdrawal under other specified circumstances. Superannuation funds are managed by trustees, who must manage the fund with care and in the interests of members. Trustees will often use professional funds managers or advisers. An approved deposit fund is similar to a superannuation fund, in terms of the purpose and tax advantages available, and is generally managed by a professional fund manager. (46)

There are different types of superannuation funds, including industry funds, corporate funds, self managed funds, retail funds and public sector funds.

What is a first home saver account?

The FHSA (47) is a savings account with particular tax advantages, designed to save for the purchase of a first home. Money can be withdrawn by an individual from an FHSA after it has been held over a minimum of four financial years, or must be transferred to a superannuation fund if the individual ceases to be eligible or no longer intends to purchase a home.

What is a retirement savings account?

An RSA (48) is similar to a superannuation fund. However, because an RSA is capital guaranteed, the balance can be reduced only by fees and charges. RSAs are fully portable between RSA providers and a superannuation fund.

What are the designated services relating to superannuation and approved deposit funds?

This section discusses superannuation and approved deposit funds in the context of items 40-42 in table 1 of the AML/CTF Act. A superannuation fund provider or an approved deposit fund provider provides a designated service when it pays a pension, annuity or lump sum, or accepts a contribution, roll-over or transfer for a new or existing member of the fund.

An FHSA provider or RSA provider provides a designated service by accepting a contribution, roll-over or transfer to an FHSA or RSA, or by cashing all or part of an account in its capacity as an FHSA provider or RSA provider.

The designated services set out at items 42 and 43 are expressed as services provided 'in the capacity of a trustee of a superannuation fund'. This means that the AML/CTF obligations lie with the trustee. The obligations under items 43A, 43B, 44 and 45 rest with the FHSA provider or the RSA provider.

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Item	Provision of designated service	Customer
40	in the capacity of provider of a pension or annuity, accepting payment of the purchase price for a new pension or annuity, where: (a) the provider is not a self managed superannuation fund; or (b) the pension or annuity is provided in the course of carrying on a business of providing pensions or annuities	the person to whom the pension or annuity is to be paid
41	in the capacity of provider of a pension or annuity, making a payment to a person by way of: (a) a payment of the pension or annuity; or (b) an amount resulting from the commutation, in whole or in part, of the pension or annuity; or (c) the residual capital value of the pension or annuity; where the provider is not a self managed superannuation fund	the person
42	in the capacity of trustee of: (a) a superannuation fund (other than a self managed superannuation fund); or (b) an approved deposit fund; accepting a contribution, roll-over or transfer in respect of a new or existing member of the fund	the member
43	in the capacity of trustee of: (a) a superannuation fund (other than a self managed superannuation fund); or (b) an approved deposit fund; cashing the whole or a part of an interest held by a member of the fund	the member, or if the member has died, the person, or each of the persons, who receives the cashed whole or a cashed part of the relevant interest
43A	in the capacity of FHSA provider, accepting a contribution, roll-over or transfer to an FHSA in respect of a new or existing FHSA holder	the FHSA holder
43B	in the capacity of FHSA provider, cashing the whole or a part of an interest held by an FHSA holder	the FHSA holder, or if the FHSA holder has died, the person, or each of the persons, who receives the cashed whole or a cashed part of the relevant interest
44	in the capacity of RSA provider, accepting a contribution, roll-over or transfer to an RSA in respect of a new or existing RSA holder	the RSA holder
45	in the capacity of RSA provider, cashing the whole or a part of an interest held by an RSA holder	the RSA holder, or if the RSA holder has died, the person, or each of the persons, who receives the cashed whole or a cashed part of the relevant interest

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Exemptions

Superannuation funds and RSA providers do not have to comply with the full customer identification obligations outlined in Part 2 of the AML/CTF Act. (49) When providing designated services 40, 42 and 44 (purchasing or accepting contributions or a roll-over to an account), superannuation funds, approved deposit funds and RSA providers are exempted from the initial customer identification requirements, but not from the ongoing customer due diligence obligations prescribed in Part 2, Division 6 of the AML/CTF Act.

There is no equivalent exemption for FHSA providers.

What are the risk indicators for superannuation funds?

A range of typologies indicate that superannuation funds can be used to facilitate money laundering and/or the financing of terrorism. The following circumstances may indicate a risk of money laundering or terrorism financing in connection with such services: (50)

significant contributions to a superannuation fund followed by instructions to roll over the member's benefit to another fund, or to a self managed superannuation fund, which may be an attempt to avoid identification requirements
the above process is followed repeatedly or involves significant amounts, particularly within a short period of time
'round-robin' transaction activity through superannuation accounts - drawing on an account and then regularly re-depositing significant amounts
significant deposits into an account belonging to an individual who meets or is close to meeting the requirements for withdrawal of funds
unusual activity, such as where deposits are received from more than one individual into the same account, particularly where the account holder has met or is close to meeting the requirements for withdrawal of funds
the nature of the transactions is inconsistent with the customer profile, such as significant personal contributions being made where in the past only employer contributions were made
the number of employees for whom an employer is making contributions appears inconsistent with expectations for a business of that type, or changes significantly over a short period of time.

The Australian Superannuation Funds Association has also identified some potential scenarios in its publication Anti-Money Laundering and Counter-Terrorism Financing, Risk Indicators for Australian Superannuation Funds. (51)

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Case studies

Case study 9

Interaction with self managed superannuation funds

A person purchased a yacht in a foreign country with proceeds of crime and brought it to Australia. The yacht was sold and the proceeds were used to establish a self managed superannuation fund. A separate superannuation fund received a roll-over from the self managed fund and created an account for the individual. Six months later, the fund received instructions to transfer the funds to the self managed superannuation fund.

While there was no requirement to conduct customer identification before transferring funds to the self managed superannuation fund, the superannuation fund detected this unusual transaction behaviour, which may have been designed to avoid identification requirements, and submitted a suspicious matter report to AUSTRAC.

Indicators: significant contributions to a superannuation fund followed by instructions to roll over the member's benefit to another fund, or to a self managed superannuation fund; contribution and subsequent roll-over from the fund in a short period of time.

Case study 10

Improper use of superannuation funds

An individual established a self managed superannuation fund. As trustee, he withdrew money from the fund on the pretext of using it for investment purposes. The money, however, was used to support his gambling habit. The individual in question had intended to repay the 'borrowed' funds with a portion of the winnings, but failed to do so.

This example illustrates the potential for superannuation funds to be used for fraudulent purposes or as a pool of funds for further criminal activity.

Indicators: regular or one-off transfer overseas from superannuation fund; cash deposits directly into superannuation.

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Frequently asked questions

Q. Will it satisfy the obligations under the AML/CTF Act if a superannuation fund outsources the customer identification and verification functions?

A. The obligations associated with providing a designated service are on the trustee of the superannuation fund. The trustee may engage someone to undertake, for example, identification and verification of members before cashing out funds, however, the principles of agency will apply. In general, any failure to comply with obligations will be the responsibility of the trustee because, while they can outsource the compliance function, they cannot outsource the responsibility for compliance.

Q. An account holder has died and the superannuation fund is paying the amount held in the account to the member's two children. Does the superannuation fund have to identify the member, or the children?

A. The designated service involves cashing out an interest in a superannuation fund. The obligation under the AML/CTF Act is to identify the customer of that service. The customer is either the person who holds the account, or the person or each of the persons who receives the cashed whole or a cashed part of the relevant interest if the member has died. If the member has died and the money is to be paid to the member's two children, each of the children is a customer for the purposes of that designated service. This applies even if they are not the account holder or if they would not be generally considered customers of the business. As each of the children is a customer of that designated service for the purposes of the AML/CTF Act, the obligation under the Act is to identify the two children as the relevant customers.

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121 There are no persons currently specified in the AML/CTF Rules.

122 This list is not exhaustive and reporting entities, through risk-based processes, may identify additional indicators within their systems. AUSTRAC, through its research on typologies, will continue to release additional case information and indicators (red flags) as identified.

123 This list is not exhaustive and reporting entities, through risk-based processes, may identify additional indicators within their systems. AUSTRAC, through its research on typologies, will continue to release additional case information and indicators (red flags) as identified.

124 This list is not exhaustive and reporting entities, through risk-based processes, may identify additional indicators within their systems. AUSTRAC, through its research on typologies, will continue to release additional case information and indicators (red flags) as identified.

125 For example, a person may wish to exchange low-value notes for higher-value notes.

126 This list is not exhaustive and reporting entities, through risk-based processes, may identify additional indicators within their systems. AUSTRAC, through its research on typologies, will continue to release additional case information and indicators (red flags) as identified.

127 This list is not exhaustive and reporting entities, through risk-based processes, may identify additional indicators within their systems. AUSTRAC, through its research on typologies, will continue to release additional case information and indicators (red flags) as identified.

128 See AUSTRAC Typologies and Case Studies Report 2007 at www.austrac.gov.au/files/typologies_report.pdf.

129 See section 92 of the Corporations Act 2001.

130 Section 9 of the Corporations Act 2001 defines excluded security to mean where: (i) there is attached to a share or debenture a right to participate in a retirement village scheme; and (ii) each of the other rights, and each interest(if any), attached to the share or debenture is a right or interest that is merely incidental to the right referred to in subparagraph (i); the share or debenture or a unit in the share or debenture; or an interest in a managed investment scheme constituted by a right to participate in a retirement village scheme.

131 See the Australian Securities Exchange (ASX) glossary of sharemarket terms at www.asx.com.au/glossary/Glossary.shtm.

132 There are a number of exclusions under chapter 7 of the Corporations Act 2001.

133 Granting or otherwise making available to the market a security or derivative.

134 See the ASX glossary of sharemarket terms at www.asx.com.au/glossary/Glossary.shtm.

135 See 'Anti-Money Laundering and Counter-Terrorism Financing Regulations 2008' at www.comlaw.gov.au/ComLaw/Legislation/LegislativeInstrument1.nsf/
asmade/bytitle/D8C82DC458DCCBE2CA2573D30016EF8F?OpenDocument.

136 See 'Managed investment schemes' at www.austrac.gov.au/man_inv.html

137 Further information in relation to item 54 can be found in PLI 2 at www.austrac.gov.au/files/pli_n2.pdf.

138 This list is not exhaustive and reporting entities, through risk-based processes, may identify additional indicators within their systems. AUSTRAC, through its research on typologies, will continue to release additional case information and indicators (red flags) as identified.

139 Such as items 1-5 in table 1, for which categories of providers are specified.

140 Defined in section 10 of the Superannuation Industry (Supervision) Act 1993.

141 Defined in section 10 of the Superannuation Industry (Supervision) Act 1993.

142 See a brief description of superannuation and approved deposit funds at the Reserve Bank of Australia website at www.rba.gov.au/FinancialSystemStability/FinancialInstitutionsInAustralia/
the_main_types_of_financial_institutions_in_aus.html.

143 Defined in section 8 of the First Home Saver Accounts Act 2008.

144 Defined in section 8 of the Retirement Savings Accounts Act 1997.

145 See subsection 39(6) of the AML/CTF Act.

146 This list is not exhaustive and reporting entities, through risk-based processes, may identify additional indicators within their systems. AUSTRAC, through its research on typologies, will continue to release additional case information and indicators (red flags) as identified.

147 Association of Superannuation Funds of Australia Ltd, Discussion Paper 2007 (available to members only).

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