Services and businesses AUSTRAC regulates

Many designated services in the financial sector are provided only by authorised deposit-taking institutions (ADIs) such as banks, building societies and credit unions. These services include:

• account and deposit taking services
• issuing cheque books
• issuing debit cards
• accepting electronic funds transfer instructions (EFTIs), or instructions to transfer funds overseas.

Other designated services in this sector are provided by ADIs and other financial service providers. These include business activities related to:

• remittance services (money transfers)
• exchanging digital currency (for example cryptocurrency) for money, or exchanging money for digital currency
• loans or finance (including hire purchase)
• investments or securities
• life insurance and sinking fund policies
• superannuation fund management (except self-managed superannuation funds)
• foreign currency exchange
• issuing travellers cheques
• issuing money or postal orders with values of A$1000 or more
• issuing (not just selling) stored value cards such as travel cards and retail gift cards with values of A$5000 of more, or A$1000 or more if they can be withdrawn in cash
• custodial and depository services (including safe deposit boxes)
• preparing payroll for other businesses
• providing pensions or annuities or retirement savings account services
• financial advisory services provided by the holder of an Australian Financial Services Licence (AFSL) where the service is arranging for clients to receive a designated service
• specialised financial services involving forfaiting, bills of exchange, promissory notes, letters of credit, factoring, derivatives, foreign exchange contracts, bearer bonds, finance leases or similar.

Bullion is metal used for trading, usually gold, silver, platinum or palladium, authenticated to a specified fineness.

Buying and selling bullion are both designated services.

• Betting accounts and services
• Exchanging gaming chips, tokens or currency
• Paying out winnings, or awarding a prize, in respect of a game or bet
• Games of chance, or a mix of chance and skill that are played for money (not including lotteries, raffles or bingo games)
• Gaming machines (such as poker machines).

• Digital currency (for example cryptocurrency) exchange providers
• Financial institutions (known as authorised deposit-taking institutions) such as:
  • banks
  • building societies
  • credit unions
• Financial planners
• Foreign currency exchange providers
• Investment services providers
• Life insurance companies
• Remittance service providers (money transfer businesses)
• Superannuation fund managers or providers.

• Bullion dealers

• Betting agencies or bookmakers
• Casinos
• Pubs, clubs and hotels (usually as providers of electronic gaming machines).

In legal terms, a reporting entity must be a ‘person’. In this context, person means a legal entity, not necessarily an individual. A reporting entity can be:

• an individual (including a sole trader)
• a company (such as a private company, a public company, a listed company, and/or a foreign company)
• a trust (such as a discretionary family trust or a unit trust)
• a partnership (either incorporated and unincorporated)
• an association (either incorporated and unincorporated)
• a corporation sole
• a body politic.

Non-profit and not-for-profit organisations can be reporting entities.

When the Act describes designated services, it often uses the term ‘carrying on a business’. The Act uses a broad definition of this phrase, and includes business activities whether or not they are conducted on a regular, repetitive or continuous business. So even if you only provide a designated service occasionally or even just once, you are still considered to be carrying on a business under the AML/CTF Act.

A reporting entity must meet the geographical link test.