Do Migration Agents Need an AML/CTF Program?
Registered Migration Agents (RMAs) are not explicitly listed as a standalone sector in the Tranche 2 reforms. However, the AML/CTF regime is activity-based, not profession-based, meaning an RMA may trigger obligations when providing certain services.
Key Takeaway
Migration agents who only provide visa advice and processing, without handling client funds, forming companies, or providing registered offices, are unlikely to require an AML/CTF program. However, those assisting with business or investor visa applications may trigger TCSP obligations.
Who are the Tranche 2 sectors?
The Tranche 2 reforms target "gatekeeper" professions. These are specifically listed as:
- Lawyers and law practices
- Accountants
- Trust and Company Service Providers (TCSPs)
- Real estate agents
- Dealers in precious metals, stones and other products
- Conveyancers
- Property developers (selling direct)
- Business brokers
- Insolvency practitioners
Migration agents are not explicitly listed. However, the obligation arises from providing "designated services" under Table 6 (Professional Services) of the AML/CTF Act, not from holding a particular professional title.
When do migration agents trigger AML/CTF obligations?
An RMA becomes subject to AML/CTF obligations if they provide "designated services" defined in Table 6, particularly when assisting with Business Innovation and Investment visas (e.g., Subclass 188/888).
1. Company Formation (Table 6, Item 6)
The service: Assisting in the planning or execution of the creation or restructuring of a body corporate or legal arrangement.
RMA relevance: RMAs often assist overseas clients in setting up an Australian proprietary company (Pty Ltd) to satisfy business visa criteria (e.g., demonstrating a "business presence" in Australia).
Trigger: If you lodge the ASIC Form 201 to incorporate the company on behalf of your client, you are acting as a formation agent.
2. Providing a Registered Office (Table 6, Item 9)
The service: Providing a registered office address or principal place of business address of a body corporate or legal arrangement.
RMA relevance: Overseas clients often lack a physical address in Australia before they arrive. An RMA might allow the client to use the RMA's office address as the registered office for the client's new Australian company.
Trigger: Providing your address for the client's corporate registration triggers this designated service.
3. Acting as a Director or Secretary (Table 6, Item 7)
The service: Acting as (or arranging for another person to act as) a director or secretary of a company.
RMA relevance: Australian companies require at least one director ordinarily resident in Australia. An RMA might act as the nominee resident director for a client's company until the client moves to Australia and can take over the role.
Trigger: Acting in this capacity, or sourcing a third party to do so, triggers the obligation.
4. Managing Client Funds (Table 6, Item 3)
The service: Receiving, holding, controlling or managing a person's money, accounts, securities, or other property to help in the planning or execution of a transaction.
RMA relevance: RMAs may hold funds in a client account. While holding fees for migration services is standard, holding funds for investment purposes (e.g., holding a deposit for a business purchase or funds related to a Significant Investor Visa application) would trigger this item.
Trigger: Controlling client capital beyond professional fees (e.g., "settlement funds") triggers this service.
5. Buying or Selling Business Entities (Table 6, Item 2)
The service: Assisting in the planning or execution of a transaction to sell, buy or transfer a body corporate or legal arrangement.
RMA relevance: Clients seeking business visas may prefer to purchase an existing business rather than start a new one. If an RMA assists in the transaction of buying a shelf company or an operating business to meet visa requirements, this is a designated service.
Trigger: Facilitating the acquisition of business entities for visa purposes triggers this service.
Why are these services high risk?
The Financial Action Task Force (FATF) notes that professionals providing these services are vulnerable because they can be used to:
- Create complex legal structures that obscure beneficial ownership
- Provide a "veneer of legitimacy" to illicit actors seeking entry into the jurisdiction
- Facilitate the movement of funds across borders under the guise of legitimate business migration
- Enable shell company formation that masks the true source of wealth
Practical Example
A migration agent assists a client with a Subclass 188 Business Innovation visa. As part of the application, the agent incorporates an Australian Pty Ltd (triggering Item 6), uses their office as the registered address (triggering Item 9), and arranges for a local accountant to act as resident director until the client arrives (triggering Item 7). This agent is now providing three designated services and would need an AML/CTF program.
What if I only provide visa advice?
If a migration agent strictly provides:
- Visa advice and application processing
- Skills assessments and qualification recognition
- Sponsorship advice for employers
- Appeals and tribunal representation
Without handling client funds (beyond professional fees), forming companies, providing registered offices, or acting as nominee directors, the current sources do not indicate they require an AML/CTF program.
What should migration agents do?
Audit your service offering
Review whether you provide any of the designated services listed above, particularly for business and investor visa clients.
Seek legal advice
If you do provide these services, consult with a lawyer who understands AML/CTF obligations to confirm your position.
Consider restructuring
If you want to avoid AML/CTF obligations, consider referring clients to accountants or lawyers for company formation and structuring services.
Use a TCSP program if captured
If you do trigger obligations, a TCSP-focused AML/CTF program will cover the designated services you provide.
Read our complete Tranche 2 Guide
Key dates, affected sectors, obligations and how to prepare
Disclaimer: This article is general information only. It is not legal, financial or compliance advice. HeadStart Docs™ provides free compliance documents, not legal services.
We do not guarantee the accuracy of information provided. Obligations may apply depending on your designated services. Always confirm your specific requirements with a qualified adviser.
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