AML Compliance Guide
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Deadline: 29 July 2026 — enforcement now active

Compliance officer for Trust and company service providerss — 2026 AUSTRAC Guide

If your business provides designated trust and company services from 1 July 2026, you need an AML/CTF compliance officer as part of getting your AML/CTF framework in place. This role matters because trust and company service providers are often involved in setting up companies, trusts and nominee arrangements that can hide who really owns or controls assets. If you ignore this obligation or leave it too late, AUSTRAC can take enforcement action, civil penalties can reach $33.5 million per contravention, and intentional breaches can lead to criminal penalties.

Your AML/CTF obligations

  1. 1. AUSTRAC enrolment
  2. 2. Compliance officer
  3. 3. ML/TF risk assessment
  4. 4. AML/CTF program
  5. 5. Customer due diligence
  6. 6. Sanctions screening
  7. 7. Suspicious matter reporting
  8. 8. Record keeping (7 years)
  9. 9. Staff training

A compliance officer is the person responsible for overseeing your AML/CTF compliance day to day. For a trust and company service provider, that usually means supervising how your business onboards clients who want shelf companies, company formations, trustee services, registered office services, or trust structures, and making sure staff follow the rules before any designated service starts. AUSTRAC’s guidance says the person must be fit and proper. They need the competence, judgment, honesty and independence to do the job properly, and they must not have serious integrity, insolvency or conflict issues that would stop them performing the role.

Deadline you should work to now

Treat 29 July 2026 as your hard action date for putting this role in place. Newly regulated businesses must enrol with AUSTRAC by 29 July 2026, and your compliance officer should be appointed before or at enrolment so they can help set up your risk assessment, onboarding controls, sanctions screening, reporting processes and staff training from day one.

What your business should do

  • Choose one person with enough authority to enforce AML/CTF procedures across your trust and company services work, not just someone with an administrative title.
  • Check they are fit and proper: skills, experience, good character, no serious adverse regulatory history, no bankruptcy or personal insolvency agreement, and no material conflict of interest.
  • Record the appointment in writing, define what they are responsible for, and make sure senior management approves the arrangement.
  • Give them access to client files, company and trust formation records, beneficial ownership information, sanctions screening results and suspicious matter escalation channels.
  • Require regular reporting to the governing body on AML/CTF compliance at least once every 12 months, and sooner if there are major issues.

For this profession, the biggest mistake is appointing the wrong person. A receptionist, junior company administrator or external bookkeeper may be organised, but they are usually not the right choice if they cannot challenge partners, stop a risky matter, or understand how nominee shareholders, layered trusts, foreign controllers and complex beneficial ownership structures create money laundering risk. Another common error is assuming the role only starts once your AML/CTF program is finalised by 31 December 2026. It starts much earlier in practice, because someone needs to drive the risk assessment, help design the program, and oversee customer due diligence and suspicious matter reporting from commencement.

Practical tips for trust and company service providers

  • If you offer company formations and trust establishment through one small practice, appoint a compliance officer who understands both corporate and trust control structures.
  • Build a simple escalation process for clients using overseas beneficiaries, corporate trustees, nominee arrangements or unexplained source of funds.
  • Make sure the compliance officer reviews high-risk instructions before you provide the service, especially where the real beneficial owner is hard to identify.
  • Keep written evidence of the appointment, fit and proper checks, reporting lines and training completed by the officer.
  • If you are part of a larger group, be clear who is responsible locally, even if some AML/CTF functions are shared across the group.

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Frequently asked questions

Do I need a separate compliance officer if I am a sole director running a small company formation business?
Not necessarily. In a very small practice, the owner can usually take the role if they are fit and proper and have enough knowledge, time and authority to do it properly. The key issue is whether you can genuinely oversee AML/CTF compliance, not how large your business is.
Can I outsource the compliance officer role to a consultant?
You can get outside help with drafting documents, training and advice, but your business still needs clear responsibility for compliance. If you use a consultant heavily, make sure someone in your business has authority, access to files and the ability to act on suspicious or high-risk matters. You remain accountable to AUSTRAC for the designated services you provide.
What does fit and proper mean in practice for this role?
It means the person must have the competence, skills, knowledge, diligence and sound judgment to perform the role, plus honesty and integrity. They should not have serious criminal or regulatory findings, should not be bankrupt or under a personal insolvency agreement, and should not have conflicts that create a material risk they will not do the job properly.
Does appointing a compliance officer cost anything with AUSTRAC?
AUSTRAC enrolment itself is free. The cost is usually internal time, training, possible legal or consulting support, and setting up workable procedures for trust and company service work. For a small provider, the main expense is usually getting the right person trained and giving them enough time to do the role properly.
What if we only provide trust deed setup or registered office services occasionally?
If what you provide is a designated service, the AML/CTF obligations still apply even if you do it occasionally. You should not assume low volume means no compliance officer is needed. If you are in scope, appoint the officer early so they can help decide exactly which services are designated and how your onboarding and beneficial ownership checks should work.

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