Other AML/CTF designated services
Any entity will become a reporting entity with AML/CTF compliance obligations if it provides a service designated in Tables 1 to 3 in s.6 of the AML/CTF Act. Although the services specified in Table 1 are aimed at financial institutions, the following services which may also be provided by members include:
"Providing a custodial or depository service where the service is provided in the course of carrying on a business of providing custodial or depository services."
The Institute sought guidance from AUSTRAC to determine whether the provision of trust account services by members would fall within the scope of Item 46.
AUSTRAC's legal advice was that where the service relates to non-cash payments into and out of the trust account, the direct deposit of ATO tax refund cheques, with funds then remitted to clients and/or the occasional deposit of client funds into a trust account for the payment of expenses, Institute members would not be providing a custodial or depository service within the terms of Item 46.
"Providing a safe desposit box or similar facility where the service is provided in the course of carrying on a business of providing safe deposit boxes or similar facilities."
"Collecting physical currency or holding physical currency collected from or on behalf of a person where in the service is provided in the course of carrying on a business of collecting or holding physical currency and the physical currency was not collected by the provider as consideration for the supply of goods or services."
"Preparing a pay-roll on behalf of a person, in whole or in part from physical currency collected, where the service is provided in the course of carrying on a business of preparing pay-rolls."
Physical currency is defined as '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'.
If you are uncertain whether a service you provide constitutes a designated service for the purposes of AML/CTF you can contact the Institute to discuss or communicate directly with AUSTRAC.
Article last updated 18 November 2010