How should a firm answer AUSTRAC's enrolment question about offshore activity?
Answer honestly based on whether the business has operations, branches or permanent establishments outside Australia that provide designated services.
Consider carefully and answer honestly based on whether your business has any operations, branches or permanent establishments outside Australia that provide designated services.
The straightforward case:
- Australian-resident, Australian-only operations. Answer "no" to offshore activity. The firm provides designated services in Australia under Australian law; that's the end of the question.
Where you need to think more carefully:
- Australian-domiciled with an overseas branch or subsidiary providing designated services. Answer "yes" and disclose the offshore arm. AUSTRAC needs visibility because designated services provided from offshore branches of Australian reporting entities are within scope.
- Offshore staff working remotely for the Australian entity. Usually "no" - the staff are employees of the Australian entity working from offshore, not an offshore branch. But if the staff effectively run a foreign operation under the same brand, treat it as offshore activity.
- Overseas clients of an Australian firm. "No" - having foreign clients doesn't make you an offshore operation. You're still providing the service from Australia.
- Foreign parent with an Australian entity. The Australian entity enrols based on its own status; the foreign parent's offshore activity is its own matter.
If you're unsure how to answer, easyAML's onboarding includes a sector-fit conversation that walks through these questions before you complete the AUSTRAC form.
See AUSTRAC's Enrol and register with AUSTRAC.