AUSTRAC has released an explanatory note for consultation relating to draft Anti-Money Laundering and Counter Terrorism Financing (AML/CTF) rules for licensed trustees if the trustee acts in the capacity of:
(a) a manager appointed by the law or a Court or Tribunal to manage the financial affairs of a person without that capacity;
(b) an executor or administrator of a deceased estate;
(c) a trustee of a trust established by:
(i) a will;
(ii) an order of a court or tribunal; or
(iii) a direction of a statutory office holder;
(d) an attorney under an enduring power of attorney; or
(e) an agent of a person lacking capacity under an agency arrangement.

The exemptions for licensed trustees do not extend to the management of inter vivos trusts. That exemption is in place only for public trustees.

AUSTRAC considers the governance, due diligence and clientele who use inter vivos trusts in the public trustee context, to be of lower money laundering and terrorist financing risk than those who use licensed trustees.