To be a designated service regulated under Australia’s AML/CTF Act, the service must have a ‘geographical link’ to Australia (as well as being listed in section 6 of the Act).
A service has a ‘geographical link’ to Australia if any of the following conditions apply:
- the service is provided to the customer at or through a permanent establishment of the entity in Australia
- the entity is a resident of Australia and the service is provided at or through a permanent establishment of the entity in a foreign country (foreign branch)
- the entity is a subsidiary of a company that is a resident of Australia and the service is provided at or through a permanent establishment of the entity in a foreign country (foreign subsidiary).
Remittance network providers located in other countries who provide their services through affiliates in Australia are regulated under the AML/CTF Act regardless of whether they satisfy the geographical link.
See
AML/CTF Act 2006 section 6