The FBAA has revealed that AUSTRAC clarified that ordinary commercial and asset finance broking was generally not intended to fall within the expanded AML/CTF obligations.
The Finance Brokers Association of Australia (FBAA) has said the Australian Transaction Reports and Analysis Centre (AUSTRAC) had clarified that ordinary commercial and asset finance broking was generally not intended to fall within Australia’s expanded anti-money laundering and counter-terrorism financing (AML/CTF) obligations.
The association welcomed the response after questioning whether wording in the original Tranche 2 guidance could inadvertently capture everyday commercial finance arrangements.
While formal confirmation remains outstanding, the FBAA said the clarification pointed towards brokers generally not requiring separate AUSTRAC enrolment or standalone AML/CTF programs solely for arranging equipment finance, working capital and other ordinary business lending.
FBAA chief executive officer Leo Gagic said the initial wording had raised concerns about businesses facing substantial requirements beyond the reforms’ intended reach.
“The original guidance left some uncertainty around whether commercial and asset finance brokers could face significant compliance obligations that were never intended to apply to their businesses,” Gagic said.
Gagic said AUSTRAC’s subsequent engagement had strengthened the association’s confidence that the distinction between ordinary broking and captured services would be formally established.
“Based on its latest response, it’s clear that AUSTRAC has listened to our concerns and worked through the issue,” he said.
“Their latest clarification gives us confidence that we’re moving towards formal confirmation that ordinary commercial and asset finance broking activities are not required to address these additional requirements.”
Drawing the line around regulated services
The clarification comes after the significant expansion of Australia’s financial-crime framework under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
From 1 July 2026, obligations extended to specified services typically supplied by lawyers, conveyancers, accountants, real estate businesses, and trust and company service providers.
Businesses providing captured services must enrol with AUSTRAC, develop an AML/CTF program, appoint a compliance officer, undertake customer due diligence and report suspicious matters.
However, the FBAA cautioned that the proposed treatment of ordinary broking would not necessarily extend to broader corporate financing work, including capital raising and business acquisitions.
Lender responsibilities remain in place
The FBAA also stressed that brokers would continue assisting lenders with their AML/CTF requirements through existing relationships and processes where required.
Gagic said the association’s push for clearer boundaries was consistent with maintaining robust protections against financial crime.
“Strong anti-money laundering protections are essential, but regulation needs to be clear about who it applies to and what businesses must do,” he said.
Gagic said the FBAA would maintain its engagement with the regulator until the outstanding confirmation was secured.
“We’ll continue working with AUSTRAC until the position is formally confirmed and brokers have the clarity they need,” he said.
[Related: Brokers await AML/CTF clarity as fresh concerns emerge]
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