Are mortgage and finance brokers captured under designated services?
Generally no, because brokers operate under the AFSL or ACL regime; it is possible where they hold client funds, structure entities, or operate as TCSPs.
The answer depends on the specific activity. Mortgage brokers operate under the Australian Financial Services Licence (AFSL) or Australian Credit Licence (ACL) regime, which already imposes regulatory obligations including some identity verification. AFSL holders are captured under Tranche 1 of the AML/CTF regime for the financial product advice they provide.
Where a mortgage or finance broker may still be captured under Tranche 2:
- If they hold or transfer client funds in connection with a designated service (rare for typical brokers, but possible in certain finance structuring contexts).
- If they assist with the establishment of corporate or trust structures alongside finance arrangements - that crosses into Table 6 designated services.
- If they act as a nominee or fiduciary in a transaction.
Each broker should assess their specific service mix. Mainstream residential mortgage broking that's purely advisory and credit-arranging isn't a Tranche 2 designated service.
For the customer-facing summary, see HubSpot KB: https://knowledge.easyaml.com/questions-regarding-designate
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