AML/CTF Compliance & Designated Service Providers: What Financial Institutions Need to Know

As the regulatory environment tightens in Australia, particularly with the expansion of Anti-Money Laundering (AML)/Counter-Terrorism Financing (CTF) obligations, many financial institutions are reconsidering how they deliver international payment services and more importantly, who carries the compliance burden.

At the centre of this is the concept of the “designated service provider.” For financial institutions exploring international transfer capabilities, this distinction has major implications for risk, compliance, and operational overhead.

What Is a Designated Service Provider (DSP)?

A designated service provider is the party that delivers a service captured under the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act, making them responsible for meeting all compliance obligations, including:

✔️ AML/CTF program implementation

✔️ Customer due diligence (CDD)

✔️ Transaction monitoring

✔️ Suspicious matter reporting (SMRs)

✔️ International fund transfer instruction (IFTI) reporting to AUSTRAC

✔️ Ongoing record-keeping and governance

✔️ Enhanced due dilligence

Being the designated provider carries regulatory weight and for many financial institutions, assuming this responsibility directly can introduce significant operational, legal, and reputational risk.

How Send Payments simplifies this, with compliance built in

This is where Send Payments steps in. You don’t just gain a partner, you plug into a purpose-built cross-border payments capability that absorbs the compliance lift, so you don’t have to.

This means that when you partner with Send to offer international transfers, we act as the designated service provider, meaning:

• We carry the risk

• We manage the reporting

• We maintain the AML/CTF program

• We handle all due diligence and client onboarding

• We take on the regulatory responsibility

Your institution can offer global payment solutions to your customers, while Send does the heavy lifting in the background.

Why Financial Institutions are Partnering with Send

Our embedded cross-border payments solutions are designed to deliver compliant, scalable, customer-centric international payment capabilities, without the regulatory overhead:

• Regulatory compliance, built-in: We operate under a robust AML/CTF framework, with automated KYC, transaction screening, and real-time risk monitoring.

• Flexible integration: Whether through API, white-label platform, or referral model, we tailor the delivery to suit your customer journey.

• Enhanced customer experience: Your clients benefit from competitive FX rates, faster transfers, and a dedicated account manager, without being bogged down in compliance checks.

• Reduced risk exposure for your financial institution: You gain the capability without carrying the regulatory burden.

The Smart way to offer International Transfers

As compliance expectations rise across the financial sector, the question isn’t just how you offer services, it’s who takes on the responsibility.

Partnering with Send Payments allows you to focus on your core business while we manage the complexity of AML/CTF compliance behind the scenes.

You get the benefit of international payment capabilities, without the weight of becoming a reporting entity.