Anti-money laundering - what is a “Designated Service” for accountants (and what isn’t)?
The AML/CTF regime uses a ‘designated services’ model for regulation. This means that regardless of branding or occupation, if a business provides one or more Designated Services as set out in the Act, they are regulated under the regime.
What does that mean for accountants?
Designated Services for accounting practices will include:
assisting a person in the planning or execution of a transaction to sell, buy or otherwise transfer real estate, a body corporate or other legal arrangement
Creating companies, partnerships or trusts.
Acting as or arranging for someone to act as director, partner, trustee or similar.
Providing registered office, business address or correspondence address for a client.
Managing or holding client money in relation to a transaction (e.g., property purchase).
Some restructuring or tax structuring services that involve entity creation and client funds.
What is not captured?
Pure advisory services, tax return preparation or audit, bookkeeping and management accounting are unlikely to be Designated Services.
The best starting point is a mapping of your existing service lines against the Designated Services definitions in the legislation. This will enable you to distinguish between “core compliance work” (likely excluded) and “structuring or transactional work” (likely captured). Depending on the breadth of services you provide to your client base, AML requirements may touch some or all of your client interactions.
We can help with all of this – register for a webinar or give our AML/CTF team a call.
Paul Gray
Principal
T 03 5225 5231 | M 0414 195 886
E pgray@ha.legal
Hugo Le Clerc
Senior Associate
T: 03 5225 5213 | M: 0438 089 334
E: hleclerc@ha.legal
