Agent banking arrangements – Threshold transaction report (TTR) obligations

What is an agent banking arrangement?

An agent banking arrangement consists of:

• an account provider offering deposit accounts to customers
• an agent bank accepting deposits, including cash deposits, on behalf of the account provider, but not maintaining the customers’ accounts.

Who is providing a designated service under these arrangements?

The account provider is providing the designated service by allowing a transaction to be conducted on the customer’s account.

An agent bank that receives a deposit from a customer under an agent banking arrangement does not provide a designated service. In such a situation, the agent bank is providing a deposit service on behalf of the account provider (or deposit-taker).

Who has the TTR reporting obligation in respect of the deposit?

The account provider will be required to submit a TTR if the designated service involves a threshold transaction.

This obligation can be discharged by the agent bank on behalf of the account provider, provided there is an agreement in place that gives the agent bank the authority to report on the account provider’s behalf. The agreement should ensure TTRs are submitted within the required timeframe and include all information required under the AML/CTF Rules.

However, the account provider is liable for any failure to submit a TTR, even if there is an agreement in place authorising the agent bank to submit TTRs on behalf of the account provider.

Where an agent bank is submitting TTRs on an account provider’s behalf, AUSTRAC expects the account provider to ensure that appropriate risk management arrangements are in place for agent bank monitoring and assurance.