What is an agent banking arrangement?
An agent banking arrangement consists of:
- an account provider offering deposit accounts to customers
- an agent bank accepting deposits, including cash deposits, on behalf of the account provider, but not maintaining the customers’ accounts.
Who is providing a designated service under these arrangements?
The account provider is providing the designated service by allowing a transaction to be conducted on the customer’s account.
An agent bank that receives a deposit from a customer under an agent banking arrangement does not provide a designated service. In such a situation, the agent bank is providing a deposit service on behalf of the account provider (or deposit-taker).
Who has the TTR reporting obligation in respect of the deposit?
The account provider will be required to submit a TTR if the designated service involves a threshold transaction.
This obligation can be discharged by the agent bank on behalf of the account provider, provided there is an agreement in place that gives the agent bank the authority to report on the account provider’s behalf. The agreement should ensure TTRs are submitted within the required timeframe and include all information required under the AML/CTF Rules.
However, the account provider is liable for any failure to submit a TTR, even if there is an agreement in place authorising the agent bank to submit TTRs on behalf of the account provider.
Where an agent bank is submitting TTRs on an account provider’s behalf, AUSTRAC expects the account provider to ensure that appropriate risk management arrangements are in place for agent bank monitoring and assurance.
This guidance sets out how we interpret the Act, along with associated Rules and regulations. Australian courts are ultimately responsible for interpreting these laws and determining if any provisions of these laws are contravened.
The examples and scenarios in this guidance are meant to help explain our interpretation of these laws. They’re not exhaustive or meant to cover every possible scenario.
This guidance provides general information and isn't a substitute for legal advice. This guidance avoids legal language wherever possible and it might include generalisations about the application of the law. Some provisions of the law referred to have exceptions or important qualifications. In most cases your particular circumstances must be taken into account when determining how the law applies to you.