How-to guides

What is NOT a designated service — common AML/CTF exclusions

Knowing when you're OUT of scope matters as much as knowing when you're in. Here are AUSTRAC's common AML/CTF Tranche 2 exclusions and carve-outs — so you don't over-comply — with the primary sources.

Most Tranche 2 coverage tells you when you're captured. Just as important — and often missed — is knowing when you're not, so you don't waste money over-complying. AUSTRAC is explicit that some activities which look adjacent to a designated service aren't designated services at all. Here are the common exclusions, with sources. (Exclusions are scenario-dependent and AUSTRAC's guidance is general, not legal advice — so treat these as a starting filter.)

Advice that doesn't advance a transaction

General advice that does not directly advance a relevant transaction is not a designated service. AUSTRAC also notes that where there's no ongoing or future transaction, the service isn't captured. So routine tax planning, strategic advice or an opinion that merely influences a possible deal generally sits outside the net — it's the execution of a relevant transaction that triggers capture. (Source: AUSTRAC — professional designated services.)

Certain real-estate interests

AUSTRAC's examples of real-estate interests that are not captured include:

• Leases of 30 years or less
• Easements and restrictive covenants
• Mortgagee interests
• Detached dwellings treated as chattels

(Source: AUSTRAC — professional designated services.) This is why pure leasing and some property-management work generally falls outside the brokering designated service — see What real estate agents need for AML/CTF compliance.

Incidental trust-account use

Incidental use of a trust account where no other designated service is provided — for example holding money purely for your own fees, or a barrister's trust account holding client money for fees — is an AUSTRAC carve-out. The trust-account use alone doesn't make you a reporting entity. (Source: AUSTRAC — professional designated services.)

Court-ordered and government-type payments

AUSTRAC's examples also include:

• Court- or tribunal-ordered receipts and disbursements
• Certain government, court, public international organisation, insurer and tax payments

(Source: AUSTRAC — professional designated services.)

Precious-metals dealers paid only by card or bank transfer

For dealers in precious metals, stones and products, the designated service is buying or selling for A$10,000 or more in cash and/or virtual assets. Transactions made only by debit/credit card or bank transfer are not a designated service. (Source: AUSTRAC — precious metals, stones and products designated services.)

TCSP exceptions

Even within trust-and-company-service-provider services, AUSTRAC lists exceptions — including certain testamentary trusts and some court/tribunal-ordered fiduciary roles. (Source: AUSTRAC — professional designated services.)

The bottom line

Being a lawyer, accountant, agent or dealer does not automatically capture you — capture is service-based and needs a geographical link to Australia. Work through your actual engagements in Is my business an AUSTRAC reporting entity?, and if you do provide a designated service, start with AML/CTF Tranche 2 explained for small businesses.

General information only, not legal advice. Exclusions are fact-specific. Reflects AUSTRAC guidance current to June 2026 — confirm your position with AUSTRAC (austrac.gov.au) or a qualified adviser before relying on an exclusion.

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