AUSTRAC License in
Australia 2025
Australia is one of the most trusted Asia-Pacific jurisdictions for launching regulated crypto and payments businesses. Before offering exchange, wallet/custody, OTC or remittance services “in or from Australia”, you must enrol and register with AUSTRAC under the AML/CTF Act and Rules. Registration brings you into scope of Australia’s AML/CTF regime and is the prerequisite for banking relationships, PSP connectivity and sustainable scale.
Legalaes provides end-to-end AUSTRAC registration support — incorporation, AML/CTF Program (Part A & Part B), due diligence, filings and post-approval compliance — tailored for digital asset and remittance operators.
Regulations for AUSTRAC Registration
AUSTRAC regulates reporting entities under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and the AML/CTF Rules. Digital currency exchange (DCE) providers and remittance service providers must enrol and register with AUSTRAC and meet ongoing obligations: maintain a tailored AML/CTF Program (Part A governance/risks; Part B KYC), appoint an AML/CTF compliance officer, verify customers, submit required reports, and keep records as required by law. Registration is an AML/CTF requirement, distinct from any financial services licensing by ASIC.
Core ongoing obligations include:
- Suspicious Matter Reports (SMRs) when activity raises reasonable suspicion.
- Threshold Transaction Reports (TTRs) for cash transactions of AUD 10,000+.
- International Funds Transfer Instructions (IFTIs) for relevant cross-border transfers.
- Record-keeping in line with the Act/Rules (statutory retention 7 years).
License Categories in Australia
| License type | Description |
|---|---|
| Digital Currency Exchange (DCE) | Covers businesses exchanging digital currency for fiat or crypto-to-crypto. Includes CEX, DEX (where centrally operated), OTC desks and brokers. |
| Remittance Services | Covers businesses sending/receiving money or value transfers. Three categories exist:
|
Each category requires AUSTRAC registration, AML/CTF program, reporting (SMR/TTR/IFTI), and renewal every three years.
Services Permitted Once Registered
With AUSTRAC registration and a compliant program, your Australian entity can lawfully offer:
- Crypto exchange (fiat on/off ramps; crypto⇄crypto) and OTC dealing.
- Custodial/non-custodial wallets and digital asset payment solutions.
- Domestic and cross-border remittance/payment channels.
- Settlement flows with banks/PSPs consistent with AML/CTF obligations
Overview of Requirements to Obtain AUSTRAC Registration
Main requirements (both DCE & Remittance):
- Incorporate an Australian Pty Ltd with a registered office.
- Obtain ABN/TFN (Australian tax identifiers).
- Appoint at least one resident director.
- Appoint an AML/CTF Compliance Officer with senior authority.
- Prepare a tailored AML/CTF Program (Part A risk/governance; Part B KYC).
- File regular reports to AUSTRAC (SMRs, TTRs, IFTIs).
- Maintain statutory records for 7 years.
- Ensure activities have an Australian geographical link.
Additional expectations:
- Clear business plan and flow of funds.
- Sanctions screening procedures.
- Ongoing transaction monitoring.
- Independent review of AML program.
- Staff compliance training.
Legal Services for Obtaining AUSTRAC Registration
Basic Package
17,900 USD
for startups incorporating in Australia
- Company name check, Pty Ltd incorporation, ABN/TFN, registered office (12 months)
- Shareholder/UBO due diligence; director file preparation
- AML/CTF Program (Part A & Part B) tailored to DCE/remittance
- Business model & risk assessment write-up; governance documents
- AUSTRAC enrolment & registration filing, regulator Q&A, post-approval compliance checklist
Comprehensive Package
On request
for full-scope compliance & bankability
- Everything in Basic, plus enhanced controls: transaction monitoring scenarios, sanctions program, staff training pack, independent review plan
- Reporting playbooks (SMR/TTR/IFTI), record-keeping matrices, assurance calendar
- Banking/PSP introductions and onboarding support; policy updates after go-live
Ready-Made Australian Vehicle
On request
subject to availability
- Clean, pre-incorporated company with ABN/TFN and registered office
- Active AUSTRAC registration (DCE and/or remittance)
- Transfer of control, update of AUSTRAC records, continuity plan
- Basic operating stack: banking/PSP connections, service-provider integrations (KYC/AML tech)
Jegor Kupratsevits
Head of Fintech
Requirements for AUSTRAC license
List of Required Documents
- Certified IDs/proof of address for directors/UBOs.
- Corporate structure chart and governance documents.
- Board resolution appointing AML/CTF Compliance Officer (with signed acceptance statement).
- AML/CTF Program (Parts A & B).
- Business plan and flow of funds.
- Client T&Cs and disclosures.
Business Premises
- Registered office address in Australia (physical or virtual acceptable).
Share Capital & Government Fees
- No statutory minimum capital required.
- Standard ASIC/ABR filing fees.
- AUSTRAC registration online, renewed every 3 years.
Bank Account
- Operational account (for OPEX, payroll, tax).
- Settlement account (for client transactions).
Personnel
- At least one resident director.
- Dedicated Compliance Officer.
- Operational staff proportionate to business size.
Roadmap to AUSTRAC Registration
Jegor Kupratsevits
Head of Fintech
Scope & Eligibility
The process begins with confirming whether your business falls under Digital Currency Exchange (DCE), Remittance, or both. We map your designated services and confirm the Australian link required by AUSTRAC. At this stage, you also receive a high-level compliance roadmap, so there are no surprises later in the registration process.
Incorporation & Governance
We establish your Australian Pty Ltd company, obtain the ABN/TFN, and appoint a resident director. At the same time, an AML/CTF Compliance Officer is nominated, ensuring clear reporting lines and decision-making structures are in place before approaching the regulator.
AML/CTF Program Development
The AML/CTF Program is the heart of your application. Part A covers risk assessment, governance, training, and oversight; Part B defines your KYC/EDD processes. Both are tailored to your services, geographies, and delivery channels, creating a practical compliance manual you can operate with from day one.
Business Profile & Filing
An AUSTRAC Business Profile is created online, followed by the official enrolment and registration filing. Supporting documents, including your AML/CTF Program and governance records, are attached. We liaise with AUSTRAC directly to ensure accuracy and completeness of the submission.
Regulator Review & Clarifications
AUSTRAC assesses the application, focusing on governance, AML/CTF design, and fit & proper criteria for directors. The regulator may issue clarifying questions or request adjustments to your Program. We handle these exchanges efficiently, ensuring your application remains on track.
Registration & Go-Live
Once AUSTRAC confirms approval, your registration is immediately active. We help you align operating procedures, finalize staff training, and integrate reporting tools so you can launch operations seamlessly. At this point, you are fully recognised as a registered entity under Australian law.
Post-Approval Support
Our role does not end with approval. We provide support for bank and PSP onboarding, periodic compliance refreshes, and preparation for your 3-year renewal cycle. This ensures your business remains compliant and credible as it grows.
Detailed Time Frames to Obtain AUSTRAC Registration
The timeline for obtaining AUSTRAC registration depends on the complexity of the business model, the completeness of the compliance framework, and AUSTRAC’s review process. Below is an approximate breakdown of the key stages:
1. Business Planning & Documentation
Time Frame: 2–6 weeks
- We assist in scoping your services (Digital Currency Exchange, Remittance, or both).
- Our team prepares the tailored AML/CTF Program (Part A & Part B).
- We collect and organise fit & proper documents (IDs, CVs, police checks, references) for directors and key personnel.
- A business plan is structured to demonstrate services, flow of funds, and risk controls.
2. Company Registration
Time Frame: 1-2 weeks
- We incorporate the Australian Pty Ltd company.
- ABN and TFN are obtained from the tax office.
- A resident director and AML/CTF Compliance Officer are formally appointed.
- Registered office address in Australia is secured.
3. Application Submission
Time Frame: 1–2 weeks
- We set up the AUSTRAC Business Profile.
- The enrolment and full registration application are submitted with all supporting documentation.
- All AUSTRAC fees are handled on your behalf.
4. Regulatory Review
Time Frame: ~6–12 weeks (local ownership) / ~3–6 months (foreign or complex ownership)
- AUSTRAC assesses governance, AML/CTF Program, and suitability of key personnel.
- We coordinate responses to regulator queries and provide clarifications.
- Updates to policies or documents are managed by our team if requested.
5. Approval & Go Live
Time Frame: Immediate upon confirmation
- Once AUSTRAC confirms approval, your registration becomes active.
- We support operational launch, including banking/PSP introductions and alignment of reporting obligations.
Tips to Reduce Delays
- Provide director/shareholder personal documents early (IDs, CVs, police clearances).
- Allow time for tailored AML/CTF Program preparation.
- Begin discussions with banks/PSPs during the application stage.
- Rely on continuous communication with AUSTRAC to avoid unnecessary pauses.
Advantages of AUSTRAC Registration
01
Clear Legal Recognition
AUSTRAC registration establishes your company as a recognised reporting entity under Australian law. This strengthens your standing with banks, PSPs, and institutional partners, providing a compliant foundation for operating remittance or digital currency services.
02
No Minimum Capital Requirement
Unlike prudential licenses, AUSTRAC registration does not impose statutory share capital thresholds. This lowers the barrier to entry, allowing founders to focus resources on building services, compliance, and customer acquisition rather than locking funds.
03
Bankable & Partner-Friendly Profile
Registration signals that your company meets AML/CTF standards aligned with FATF expectations. This credibility increases the likelihood of securing banking relationships, PSP onboarding, and international partnerships.
04
Flexible Business Models
Both remittance and digital currency exchange services can be authorised under AUSTRAC registration. Businesses may operate multiple services — exchanges, wallets, custody, OTC desks, or money transfer — within one framework.
05
English-Language Regulatory Environment
All filings, policies, and correspondence are in English. This streamlines the application process and reduces translation costs, making Australia one of the most accessible English-speaking markets for fintech operators.
06
Efficient Incorporation Process
Company incorporation in Australia is straightforward and fully digital. Combined with the AUSTRAC online application, this allows a faster go-to-market compared to jurisdictions with lengthy physical or paper-based procedures.
07
Predictable Compliance Obligations
Obligations such as Suspicious Matter Reports (SMR), Threshold Transaction Reports (TTR), and International Funds Transfer Instructions (IFTI) are clearly defined. Record-keeping obligations (7 years) and regular renewals every three years provide regulatory clarity.
08
Strategic Asia-Pacific Hub
Operating from Australia provides access to a stable common law jurisdiction with strong international reputation. It also serves as a strategic base to service clients across the Asia-Pacific region, including high-growth fintech and remittance markets.
Key Legal Resources
Definitions, enrolment guidance, and obligations for DCE providers.
Covers RNP, Affiliate, and Independent Dealer categories and obligations.
Primary legislation governing AML/CTF obligations in Australia.
Detailed operational requirements under the AML/CTF Act, including AML/CTF Programs and reporting.
Practical guidance on building and maintaining AML/CTF Programs.
Explains SMR triggers, deadlines, and submission process.
Reporting obligations for cash transactions ≥ AUD 10,000.
Rules and timelines for cross-border transfer reporting.
Pty Ltd companies must appoint at least one director residing in Australia.
Taxation of AUSTRAC-Registered Crypto & Remittance Companies
Australia applies a mainstream corporate tax regime to AUSTRAC-registered entities, with clear rules for company profits, dividends to foreign owners, and payroll for local staff or directors. For most of our clients (80%+ foreign-owned, often operating outside Australia), the key questions are: how profits are taxed, how dividends are treated when paid abroad, and what obligations exist if you employ staff or directors in Australia.
Corporate Income Tax (CIT)
Corporate Income Tax (CIT)
- 25% for base rate entities (turnover < AUD 50m, <80% passive income).
- 30% for all other companies.
Scope: Applies to worldwide income if your company is incorporated in Australia or managed from Australia. Even if most revenues come from offshore crypto or remittance flows, they are included in the taxable base.
Dividends & Withholding Tax (foreign shareholders)
Dividends & Withholding Tax (foreign shareholders)
- Standard 30% WHT on dividends to non-residents.
- Reduced to 0–15% under most of Australia’s double tax treaties (depends on shareholder jurisdiction and whether dividends are franked).
- Fully franked dividends (i.e., where corporate tax has already been paid in Australia) are often exempt from further taxation in the shareholder’s home country.
Salaries & Payroll (local vs. foreign staff)
Salaries & Payroll (local vs. foreign staff)
- Local employees in Australia: Subject to progressive Personal Income Tax (up to 45%) plus employer superannuation (11.5% in 2025). The company must withhold PAYG tax monthly and remit super quarterly.
- Non-resident directors / compliance officers: If paid for work physically performed in Australia, income is taxed at source, typically via non-resident withholding (15–30%, treaty dependent). Work performed fully outside Australia is usually not taxable locally.
GST (indirect tax)
GST (indirect tax)
- Crypto exchange/remittance services: Treated like money transfers — GST-free.
- Other services to Australian customers (consulting, SaaS, advisory, etc.): GST at 10% may apply.
- Supplies to non-residents are generally GST-free.
Reporting & Compliance
Reporting & Compliance
- Annual corporate tax return lodged with the Australian Taxation Office (ATO).
- PAYG and payroll filings if you hire locally.
- Dividend withholding tax filings when profits are repatriated to foreign owners.
- Transfer pricing rules apply if the Australian entity transacts with foreign affiliates.
FAQ — AUSTRAC Registration (Crypto & Remittance)
Do we need a “crypto licence” in Australia?
You must enrol and register with AUSTRAC if you provide DCE or remittance services “in or from Australia”. There is no single “crypto licence” label; AUSTRAC registration is the AML/CTF requirement.
Is AUSTRAC registration the same as an ASIC financial licence?
No. AUSTRAC registration addresses AML/CTF. An AFS licence may be required if your product is a financial product under ASIC rules (e.g., certain tokenised or derivatives offerings).
How long does registration take?
Typical end-to-end timelines are ~3–6 months for straightforward Australian-owned structures and ~6–9 months for complex or foreign-owned groups, driven by document readiness and clarifications.
Do we need a local office and team?
You need an Australian company with a resident director and a named AML/CTF Compliance Officer with sufficient authority. Operational staffing is sized to your risk and volumes.
What reports do we file?
SMRs, TTRs (for cash ≥ AUD 10,000) and IFTIs, as applicable to your services and flows.
How often do we renew?
DCE and remittance registrations must be renewed every three years via AUSTRAC Online.
Is there a minimum capital requirement?
No statutory minimum under the AML/CTF Act; banking partners may set their own financial expectations.
What records must we keep and for how long?
Keep customer identification, transaction and Program records in line with the Act/Rules — 7 years is the statutory baseline for most AML/CTF records.
Can a foreign group own 100% of the Australian entity?
Yes, but you must meet Australian company law and AML/CTF obligations (resident director, reporting and Program).
What happens if we operate without registration?
Breaches of the AML/CTF Act can lead to civil penalties and criminal sanctions; register before commencing services.
Each of our projects receives unique and tailored solutions in accordance with the initial objectives and vision of the shareholders.
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