The categories
The exact wording is in the AML/CTF Act's tables of designated services. AUSTRAC publishes a plain-language guide for accountants; use it to check each service you offer.
- Assisting a person to plan or carry out a transaction to buy or sell real estate, or to buy or sell a business or a body corporate.
- Receiving, holding, controlling or managing a person's money, securities, accounts or other assets. Holding a trust account for client funds is the classic example.
- Organising contributions for the creation, operation or management of a company, trust or partnership.
- Creating, operating or managing a company, trust or partnership, including acting as a director, secretary, trustee, nominee shareholder or registered office.
- Selling or transferring shelf companies.
What is not designated
Tax returns, financial statements, audit, BAS and payroll, general business advice, and bookkeeping in the client's own systems. Receiving your own fees is not holding client money.
Why the list matters
Your enrolment, your program and your client due diligence all reference the designated services you provide. If you add a service, for example you start acting as registered office for client companies, update all three.
Questions people ask
- We set up companies for clients through an ASIC agent. Is that designated?
- Creating a company for a client is designated whether you lodge with ASIC yourself or through an agent. What matters is that you are providing the service to the client.
- We hold a client's deposit for a day while a sale settles. Designated?
- Holding or controlling client money is designated, even briefly. Treat it as such.
This guide is general information for accountants, bookkeepers, BAS agents, not legal advice. Check AUSTRAC's current guidance for your situation.