It’s a conversation many in the professional services sector are having right now: what exactly are these new designated services, and how will they impact the way we operate? For those of us working as lawyers, accountants, financial advisers, and similar professionals, understanding these changes is key, especially as they come into effect from July 1, 2026.
At its heart, the reform focuses on specific activities that fall under the umbrella of anti-money laundering and counter-terrorism financing (AML/CTF) obligations. Think of it as a closer look at services that involve significant financial transactions or the management of assets. The reference material outlines nine key areas, and it’s worth unpacking a few of them to get a clearer picture.
For instance, assisting in the planning or execution of transactions involving real estate – whether it's buying, selling, or transferring – is now a designated service. This also extends to similar transactions involving body corporates or legal arrangements. It’s not just about the final act; the preliminary and preparatory steps, like drafting contracts or structuring deals, are also included if they directly advance the outcome.
Another significant area is the receiving, holding, controlling, or managing of a person’s property, specifically when it’s done to help facilitate a transaction. This brings a new layer of responsibility for those handling client funds or assets in these contexts. Similarly, services related to equity or debt financing for companies, or the creation and restructuring of legal entities, are now under this regulatory spotlight.
Even seemingly straightforward services, like providing a registered office address or principal place of business for a body corporate, are now considered designated services if they have a geographical link to Australia. The overarching principle seems to be about ensuring transparency and robust checks are in place for services that could potentially be misused.
So, what does this mean practically? If your business provides any of these designated services, and they have that Australian link, you'll need to enrol with the relevant authority and meet your AML/CTF obligations. A crucial part of this is the 'know your customer' process, which needs to be completed before you even start providing the service. It’s about building a solid understanding of who you’re working with right from the outset.
The guidance available aims to help professionals navigate these new requirements. It delves into key terms and principles, offering interpretations to help determine if a service falls under the new regulations. The distinction between 'assisting' and 'otherwise acting for or on behalf of a person' is important here, as both can trigger obligations. It’s a nuanced area, and understanding these definitions is vital for compliance.
Ultimately, this is about strengthening the integrity of the financial system. While it might mean more administrative steps for some, the goal is to create a more secure environment for everyone involved in these professional transactions. It’s a good time to review your service offerings and ensure you’re prepared for the changes ahead.
