Are you regulated by AUSTRAC under Tranche 2?

• ● You provide services in Australia through business premises, a branch or an office (including from a temporary location while travelling in Australia)
• ● You’re an Australian business or organisation but provide services through a foreign branch or foreign subsidiary
• ● You’re the subsidiary of an Australian business or organisation and you provide services in a foreign country

Select all that might apply.

For example:

• ● preparing contracts
• ● coordinating settlement
• ● lodging transfer instruments

Just influencing what a customer does, or providing general advice or ancillary services, isn’t enough on its own. For example, a solicitor only advising a conveyancer about what certain contract terms legally mean isn’t directly advancing the transaction. The conveyancer who prepares the paperwork to transfer the real estate from seller to buyer is, and will be regulated.

For example:

• ● drafting sale contracts
• ● conducting due diligence
• ● preparing ASIC documents

A body corporate includes any legally incorporated entity with legal personality (companies, incorporated associations, incorporated limited partnerships, corporations sole).

A legal arrangement is an entity without legal personality (express trusts, general partnerships, joint ventures, unincorporated associations, foreign equivalents).

For example:

• ● negotiating, structuring and executing a financing deal
• ● drafting debt or equity finance documents

Examples include equity capital raising (IPOs, venture capital, share purchase plans, rights issues, block trades) and debt financing (secured or unsecured bonds, bills or notes, asset financing, loans including government loans, debentures).

For example, drafting trust deeds, constitutions, partnership agreements, or ASIC forms.

Note: if your service only involves restructuring, you’re unlikely to be regulated where the work doesn’t change the legal form or structure, including changes that only relate to operations, staffing or debt restructuring for small businesses under the Corporations Act 2001.

• ● a director or secretary of a company
• ● a power of attorney of a body corporate or legal arrangement
• ● a partner in a partnership
• ● a trustee of an express trust
• ● a functionally equivalent position in any other legal arrangement

‘Acting as’ one of these roles means the nominator retains control over the acting person’s duties and the acting person acts on the nominator’s wishes and instructions.

• ● as a power of attorney in relation to natural persons
• ● as trustee of testamentary trusts or trusts not created in writing
• ● in a fiduciary capacity pursuant to, or as a result of, a court or tribunal order
• ● as the trustee of a regulated debtor’s estate (within the meaning of Schedule 2 to the Bankruptcy Act 1966)

A nominee shareholder both holds shares or an interest on behalf of another person and exercises voting rights according to the nominator’s instructions or receives dividends on the nominator’s behalf.

This applies whether or not you charge a fee for the service.

Assets include money, accounts, securities and securities accounts, virtual assets and other property. This may include:

• ● managing sale proceeds or purchase funds on escrow (‘transit money’)
• ● managing money or property prior to it being settled as trust property on the creation of an express trust
• ● having authority over a customer’s bank account and making payments from it on their behalf
• ● helping create legal arrangements to disburse client funds to purchase an asset on their behalf

• ● You’re holding or controlling the assets only as payment for your goods or services
• ● Controlling or holding the assets is the only designated service you could be providing and you only do this incidental to services that aren’t designated services (for example, a legal practice that solely provides litigation services and handles client money in escrow to pay off settlement agreements)
• ● The assets are to be received or paid under a court or tribunal order, or to or from a government body, public international organisation, insurer or court

• ● You’re holding or controlling the assets only as payment for your goods or services
• ● The assets are to be received or paid under a court or tribunal order, or to or from a government body, public international organisation, insurer or court

• ● You provide services in Australia through business premises, a branch or an office (including from a temporary location while travelling in Australia)
• ● You’re an Australian business or organisation but provide services through a foreign branch or foreign subsidiary
• ● You’re the subsidiary of an Australian business or organisation and you provide services in a foreign country

• ● loans or finance (including hire purchase)
• ● investments or securities
• ● superannuation (other than an SMSF)
• ● foreign currency exchange
• ● issuing (not just selling) stored value cards of $5,000 or more, or $1,000 or more if cash-withdrawable
• ● issuing money or postal orders of $1,000 or more
• ● issuing (not just selling) traveller’s cheques
• ● issuing chequebooks or debit cards
• ● custodial or depository services (including safe deposit boxes)
• ● payroll for other businesses
• ● specialised services involving forfaiting, bills of exchange, promissory notes, letters of credit, factoring, derivatives, foreign exchange contracts, bearer bonds, finance leases or similar

An ADI is licensed by APRA to carry on banking business, including accepting deposits from the public.

Financial services provided by ADIs include account and deposit taking, issuing cheque books, issuing debit cards, and accepting electronic funds transfer instructions, including instructions to transfer funds overseas.

• ● You provide services in Australia through business premises, a branch or an office (including from a temporary location while travelling in Australia)
• ● You’re an Australian business or organisation but provide services through a foreign branch or foreign subsidiary
• ● You’re the subsidiary of an Australian business or organisation and you provide services in a foreign country

• ● You have gaming machines (such as poker machines)
• ● You offer gambling services, such as betting services (for example, bookmakers), betting accounts, exchanging gaming chips, tokens or currency, paying out winnings or awarding a prize in respect of a game or bet, or other games of chance or mixed chance and skill played for money (not including lotteries, raffles or bingo games)

• ● You provide services in Australia through business premises, a branch or an office (including from a temporary location while travelling in Australia)
• ● You’re an Australian business or organisation but provide services through a foreign branch or foreign subsidiary
• ● You’re the subsidiary of an Australian business or organisation and you provide services in a foreign country

This means you accept instructions from customers to send funds to a recipient in another location, but you aren’t a bank or similar financial institution.

Note: some businesses send or receive money as an incidental part of another service (for example, legal, accounting, conveyancing or real estate services); in that case you generally won’t be providing a designated remittance service. For example, a real estate agent that receives and disburses sale deposit funds as part of real estate services is generally not providing a remittance service.

• ● You provide services in Australia through business premises, a branch or an office (including from a temporary location while travelling in Australia)
• ● You’re an Australian business or organisation but provide services through a foreign branch or foreign subsidiary
• ● You’re the subsidiary of an Australian business or organisation and you provide services in a foreign country

Bullion is gold, silver, platinum or palladium, in bars, ingots, plates, wafers or similar forms, or in coins used for trading.

Coins traded at their bullion value are bullion regardless of any fineness mark (for example, gold sovereigns and Krugerrands traded at bullion value). Coins valued on other factors, such as collector or proof coins, may still be regulated as precious metals.

• ● You provide services in Australia through business premises, a branch or an office (including from a temporary location while travelling in Australia)
• ● You’re an Australian business or organisation but provide services through a foreign branch or foreign subsidiary
• ● You’re the subsidiary of an Australian business or organisation and you provide services in a foreign country

Precious metals: gold, silver, platinum, iridium, osmium, palladium, rhodium, ruthenium or an alloy with at least 2% weight of any of these, manufactured or unmanufactured.

Precious stones: substances of gem quality with market-recognised beauty, rarity and value, including beryl, corundum, diamond, garnet, jadeite jade, opal, pearl or topaz.

Precious products: items made of, containing, or having attached any precious metals or stones, that are jewellery, watches or other items of personal adornment, or goldsmith’s or silversmith’s wares.

This includes a single transaction of $10,000 or more, and 2 or more linked (or apparently linked) transactions that together meet or exceed $10,000.

Linked transactions are payments, sales or purchases that are connected: same customer, similar items, or close together.

• ● You provide services in Australia through business premises, a branch or an office (including from a temporary location while travelling in Australia)
• ● You’re an Australian business or organisation but provide services through a foreign branch or foreign subsidiary
• ● You’re the subsidiary of an Australian business or organisation and you provide services in a foreign country

For financial advisers this might include arranging for a client to open an investment account with a financial institution or to take out a life insurance policy with an insurance provider.

• ● You provide services in Australia through business premises, a branch or an office (including from a temporary location while travelling in Australia)
• ● You’re an Australian business or organisation but provide services through a foreign branch or foreign subsidiary
• ● You’re the subsidiary of an Australian business or organisation and you provide services in a foreign country

• ● Broker the purchase, sale or transfer of real estate for another person (for example, acting as a real estate agent, land agent or buyer’s agent: negotiating with another party, finding a buyer or seller, acting on behalf of a buyer or seller, receiving a payment or commission)
• ● Sell or transfer real estate as part of a business, without using an independent real estate agent (for example, property developers or direct sellers, including using an internal agent to sell house and land packages, off-the-plan apartments or land subdivisions, where an agreement to sell or transfer exists or a sale or transfer is expected to proceed)

• ● fee simple interest (a common form of land ownership in Australia)
• ● leasehold interest of more than 30 years
• ● a right to occupy land through shares or units with a lease or licence

This does not include leases of 30 years or less, easement or similar rights, mortgagee interests, or dwellings not attached to land where the resident owns the dwelling but leases (for 30 years or less) the land it sits on.

• ● You provide services in Australia through business premises, a branch or an office (including from a temporary location while travelling in Australia)
• ● You’re an Australian business or organisation but provide services through a foreign branch or foreign subsidiary
• ● You’re the subsidiary of an Australian business or organisation and you provide services in a foreign country

A virtual asset is a digital representation of value that can be transferred, stored or traded electronically and isn’t issued by or under authority of a government body. It must either work as a form of currency, a store of value, a unit of account or an investment, or give a person the right to vote on how a connected digital asset arrangement is managed or run.

Examples:

• ● cryptocurrency such as Bitcoin, Ether, Solana and XRP
• ● stablecoins such as USDC, USDT, DAI or AUDD
• ● NFTs that store value or are used as a form of payment

For example, a law firm holding a client’s virtual assets in escrow to resolve a legal dispute is an incidental part of legal services, not a virtual asset service provided as a business.

For example, letting customers swap Bitcoin for Australian dollars.

Making arrangements means you don’t need to provide all parts of the exchange (for example, running a platform where others can exchange virtual assets, or playing any role that helps make the exchange happen).

For example, letting customers swap Ether for Solana. This includes exchanging one kind of virtual asset for the same type, such as Bitcoin for Bitcoin.

This includes multi-signature arrangements.

For example, sending virtual assets to another individual or entity at a customer’s request, or receiving virtual assets and transferring them to the recipient’s self-hosted wallet or making them accessible in a custodial wallet.

For example, providing financial services (such as guaranteeing a loan) supporting a new virtual asset offered to the public such as an initial coin offering, buying virtual assets from an issuer and reselling them to customers, or underwriting or making a market.