FX - Remittance dealers

This page provides pointers to help you understand how the law might apply to your innovation.

Are you a foreign exchange provider or remittance dealer?

Foreign exchange providers buy and sell foreign currencies for consumers.

Remittance dealers operate a network of affiliates who provide remittance services to customers of the network (e.g. money transfer services) and provide these services through a shared or common platform or operating system.

Licensing of foreign exchange providers

Whether or not foreign exchange businesses need to be regulated by ASIC often depends on the type of contracts they are providing.

An important distinction is when and how the contracts settle. Foreign exchange contracts that settle immediately are not financial products. This means businesses providing just these contracts, or services relating to them, don’t need an AFS licence. Other foreign exchange providers may need an AFS licence.

Licensing of remittance dealers

Although some remitters may need an AFS licence, there is an exemption that is relevant to remittance dealers with products that meet the following criteria:

  1. The issuer is an operator of a payment system or an authorised deposit-taking institution (e.g. well-established and substantial remittance dealers);
  2. Payment is made (i.e. money is available to the recipient) within two business days;
  3. The funds are transferred electronically; and
  4. There is no standing arrangement with the client under which funds may be transferred electronically.

To learn more about this exemption see Regulation 7.1.07G of the Corporations Regulations.

Australian Transaction Reports and Analysis Centre (AUSTRAC) is the primary regulator of remittance service providers. You will be required to be registered with AUSTRAC and can learn more about their regulatory framework on their website.

Your general obligations if you need an AFS licence

If you need an AFS licence you will need to meet certain general requirements relating to your organisational capacity, education and training levels, risk management systems and financial position. You must also comply with certain conduct and disclosure obligations. Refer to Regulatory Guide 104 Licensing: Meeting the general obligations and Regulatory Guide 168 Disclosure: Product Disclosure Statements (and other disclosure obligations) for more information.

For guidance about how to satisfy some of the other AFS general licensee obligations, see Regulatory Guide 165 Licensing: Internal and external dispute resolution and Regulatory Guide 166 Licensing: Financial Requirements and RG 181 Licensing: Managing conflicts of interest.

Subscribe for updates

Innovation Hub subscribeSubscribe to receive news alerts on a wide range of Innovation Hub activities including news, events, publications, announcements, and more.

Subscribe now


Innovation Hub - latest news

ASIC shares  regtech event datasets for financial services industries

8 July 2019

ASIC has shared datasets for demonstrators participating in its first two regulatory technology (regtech) events: Monitoring Financial Promotions (2 August 2019) and Financial Advice Files (22 August 2019).

More information

GFIN: One Year On report now available

25 June 2019

ASIC is pleased to announce the publication of the Global Financial Innovation Network’s (“GFIN”) “One Year On” report. It is a reflection of the GFiN’s achievements and challenges since inception, and ambitions for the future.

More information



Innovation Hub - events

ASIC's 7th Regtech Liaison Forum

26 July 2019

This Forum is intended to facilitate discussions surrounding developments and opportunities that arise from the application of regtechs.

Find out more

Financial Advice Promotions Symposium

2 August 2019

This event will demonstrate how regtech can help improve compliance and quality of financial promotions and advertising, both printed and online.

Find out more

Financial Advice Files Symposium
22 August 2019

This event will demonstrate how regtech can be used to improve compliance in Australia’s financial industry and advice outcomes for consumers.

Find out more



Innovation Hub - Podcast

Crowd-sourced funding

ASIC Commissioner John Price joins the podcast to discuss recent law reform around crowd-sourced funding and ASIC's role in administering the new legislation.

Listen now or download for later

Last updated: 23/08/2016 01:54