AUSTRAC
The Australian Government agency that oversees anti-money-laundering and counter-terrorism-financing obligations, and to which certain businesses must report as designated service providers.
Definition
The Australian Government agency that oversees anti-money-laundering and counter-terrorism-financing obligations, and to which certain businesses must report as designated service providers. BuildFair's architecture does not make it an AUSTRAC reporting entity, a position that has been confirmed and documented; it still verifies every party on the platform through KYC and KYB checks.
Why it matters
AUSTRAC obligations attach to businesses that provide particular designated services. Whether a platform is a reporting entity affects its compliance obligations, and it is another claim that needs to be stated accurately. BuildFair's position is that its architecture does not make it a designated service provider, so it is not an AUSTRAC reporting entity, a position that has been confirmed and documented. It nonetheless verifies every party on the platform.
How it works in practice
AUSTRAC administers Australia's anti-money-laundering and counter-terrorism-financing regime. Designated service providers must enrol, report certain transactions, and meet customer due diligence obligations.
BuildFair verifies every builder, owner, subcontractor, and supplier through Know Your Customer and Know Your Business checks using Sumsub, regardless of whether it is required to. This keeps the audit trail meaningful: every transaction is between identified, verified parties.
Common misconceptions
Any company that moves money is an AUSTRAC reporting entity
Not automatically. The obligation depends on whether the business provides a designated service under the legislation.
Not being a reporting entity means no identity checks
Not on BuildFair. The platform runs KYC and KYB verification on every party whether or not it is required to.