Glossary

Two or more reporting entities that have agreed to form a group (the designated business group) to share the administration of some or all of their AML/CTF obligations (such as an AML/CTF program or record-keeping). Any member of the group can fulfil some of the obligations for the other members. However each reporting entity is still ultimately responsible for meeting its own AML/CTF obligations.

DBGs can only be formed by:

• related companies
• joint ventures
• accounting practices that are reporting entities
• legal practices that are reporting entities
• registered remittance service providers.

An entity can only be a member of one designated business group at a time. The group agreement must be in writing.

See

AML/CTF Act 2006 section 5

AML/CTF Rules 2007 chapter 2, part 2.1

An arrangement for transferring money or property to a recipient, where at least one of the entities involved in either accepting the instruction for the transfer, or making the money or property available, is not a financial institution such as a bank or a credit union.

See

AML/CTF Act 2006 section 10

A service for transferring money or property offered by a remittance service provider.  The remittance service must involve either accepting an instruction for the transfer of money or property, or making money or property available to the intended payee, or both.  In addition, the remittance service must be provided at or through a permanent establishment of the remittance service provider in Australia.

A service that is listed in section 6 of the AML/CTF Act (because it has been identified as posing a risk for money laundering and terrorism financing) and which meets the geographical link. Designated services include a range of business activities in the financial services, bullion, gambling and digital currency exchange sectors. Entities that provide any of these services are reporting entities. Reporting entities have obligations under the AML/CTF Act.

See

AML/CTF Act 2006 section 6, tables 1–3

A type of currency that only exists in digital rather than physical form (not coins or notes, for example). Digital currency:

• can be exchanged for goods, services or physical currency
• is not issued by or under the authority of a government.

See

AML/CTF Act 2006 section 5

A reporting entity that exchanges:

• money (Australian or foreign currency) for digital currency
• digital currency for money (Australian or foreign currency)

as part of operating a digital currency exchange business.

See

AML/CTF Act 2006 section 76E 

An instruction for the transfer of money controlled by a customer to another person, where:

• the transfer instruction is carried out or passed on electronically
• the transfer is within the same financial institution or between financial institutions. 

See

AML/CTF Act 2006 sections 5, 8 and 9

A machine used for playing a game of chance or a game of mixed chance and skill in an attempt to win money or something else of value. For example, a poker machine.

See

AML/CTF Act 2006 section 5

To be a designated service regulated under Australia’s AML/CTF Act, the service must have a ‘geographical link’ to Australia (as well as being listed in section 6 of the Act).

A service has a ‘geographical link’ to Australia if any of the following conditions apply:

• the service is provided to the customer at or through a permanent establishment of the entity in Australia
• the entity is a resident of Australia and the service is provided at or through a permanent establishment of the entity in a foreign country (foreign branch)
• the entity is a subsidiary of a company that is a resident of Australia and the service is provided at or through a permanent establishment of the entity in a foreign country (foreign subsidiary).

Remittance network providers located in other countries who provide their services through affiliates in Australia are regulated under the AML/CTF Act regardless of whether they satisfy the geographical link.

See

AML/CTF Act 2006 section 6

A remittance service provider that uses its own products, platforms or systems to provide remittance services to customers. An independent remittance provider may own or control a number of branches.

See

AML/CTF Act 2006 section 75C