--- title: "Insolvency Practitioners & AML/CTF (It Depends) | HeadStart Docs™" description: "Insolvency practitioners aren't automatically excluded from AML/CTF. Learn which appointments trigger designated services and when s 6(5E) applies." lang: en-AU json-ld: | [ { "@context": "https://schema.org", "@type": "Organization", "name": "HeadStart Docs", "legalName": "HeadStart Docs Pty Ltd", "url": "https://www.headstartdocs.com.au", "logo": { "@type": "ImageObject", "url": "https://www.headstartdocs.com.au/logo-512.png?v=4", "width": 512, "height": 512 }, "description": "AML/CTF compliance digital products and programs for Australian businesses under Tranche 2 regulations. Free program documents and AML Portal. CDD $35/customer.", "foundingDate": "2025", "address": { "@type": "PostalAddress", "addressCountry": "AU" }, "areaServed": { "@type": "Country", "name": "Australia" }, "contactPoint": { "@type": "ContactPoint", "contactType": "customer service", "email": "support@headstartdocs.com.au", "availableLanguage": "English" }, "sameAs": [ "https://twitter.com/HeadStartDocs" ], "taxID": "ABN 12 691 347 823", "knowsAbout": [ "AML/CTF Tranche 2 Australia", "AUSTRAC Compliance", "Anti-Money Laundering Programs", "Customer Due Diligence", "PEP Screening", "Sanctions Screening", "Risk Assessment Frameworks" ], "numberOfEmployees": { "@type": "QuantitativeValue", "minValue": 1, "maxValue": 10 } }, { "@context": "https://schema.org", "@type": "WebSite", "name": "HeadStart Docs", "url": "https://www.headstartdocs.com.au", "description": "Start with working documents for AML/CTF Tranche 2 compliance. Your solicitor settles.", "potentialAction": { "@type": "SearchAction", "target": "https://www.headstartdocs.com.au/sanctions-search?q={search_term_string}", "query-input": "required name=search_term_string" } }, { "@context": "https://schema.org", "@type": "Service", "name": "HeadStart Docs", "description": "Comprehensive AML/CTF compliance frameworks for Australian Tranche 2 sectors. Industry-specific digital products with complexity included, for independent professionals.", "url": "https://www.headstartdocs.com.au/", "brand": { "@type": "Brand", "name": "HeadStart Docs" }, "offers": { "@type": "Offer", "priceCurrency": "AUD", "price": "679", "description": "Comprehensive risk frameworks, policies & related products packs for Tranche 2 Australian entities." }, "serviceType": "AML Compliance Digital Products", "areaServed": { "@type": "Country", "name": "Australia" }, "hasOfferCatalog": { "@type": "OfferCatalog", "name": "AML Compliance Program Packs", "itemListElement": [ { "@type": "OfferCatalog", "name": "Single Principal AML/CTF Program Pack", "description": "AML/CTF program pack for sole practitioners", "itemListElement": [ { "@type": "Offer", "price": "679", "priceCurrency": "AUD" } ] }, { "@type": "OfferCatalog", "name": "Multi-Staff Business AML/CTF Program Pack", "description": "AML/CTF program pack for multi-staff practices (most popular)", "itemListElement": [ { "@type": "Offer", "price": "1370", "priceCurrency": "AUD" } ] }, { "@type": "OfferCatalog", "name": "Reporting Group AML/CTF Program Pack", "description": "AML/CTF program pack for reporting groups with multiple entities", "itemListElement": [ { "@type": "Offer", "price": "2720", "priceCurrency": "AUD" } ] } ] }, "knowsAbout": [ "AML/CTF Tranche 2 Australia", "AUSTRAC Compliance", "Comprehensive Risk Frameworks", "Industry-Specific Compliance" ], "provider": { "@type": "Organization", "name": "HeadStart Docs Pty Ltd", "description": "HeadStart Docs is not a law firm. We provide digital products for AML/CTF compliance, not legal services." } }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://www.headstartdocs.com.au/" }, { "@type": "ListItem", "position": 2, "name": "Shop", "item": "https://www.headstartdocs.com.au/shop" }, { "@type": "ListItem", "position": 3, "name": "Tranche 2 Hub", "item": "https://www.headstartdocs.com.au/tranche-2" }, { "@type": "ListItem", "position": 4, "name": "Sanctions Search", "item": "https://www.headstartdocs.com.au/sanctions-search" } ] }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "Do I still need a solicitor for AML/CTF Tranche 2 compliance?", "acceptedAnswer": { "@type": "Answer", "text": "Yes. HeadStart Docs products are digital publications that give you a substantial head start, but they must be reviewed and tailored by a qualified solicitor to your specific business circumstances before implementation." } }, { "@type": "Question", "name": "How is HeadStart Docs different from the free AUSTRAC Starter Kits?", "acceptedAnswer": { "@type": "Answer", "text": "AUSTRAC Starter Kits are generic starting points that require significant customisation. HeadStart products are sector-specific, pre-populated with industry-relevant risk factors and scenarios, and include 12 months of AML Portal access for ongoing compliance including screening, record keeping and reporting tools." } }, { "@type": "Question", "name": "What if the AML/CTF rules change after I purchase?", "acceptedAnswer": { "@type": "Answer", "text": "Your digital products are yours to keep. If significant regulatory changes occur, updated versions will be available to active portal subscribers. The AML Portal itself is continuously updated to reflect current AUSTRAC requirements and sanctions lists." } }, { "@type": "Question", "name": "What happens after my 12-month AML portal access expires?", "acceptedAnswer": { "@type": "Answer", "text": "Your documentation is yours forever. To continue using the AML Portal (screening tools, compliance calendar, record keeping), you pay $35 per customer CDD. Cancel anytime — no subscription required." } }, { "@type": "Question", "name": "Is HeadStart Docs a law firm?", "acceptedAnswer": { "@type": "Answer", "text": "No. HeadStart Docs is a digital publisher and platform provider. We sell digital compliance products and portal access. We do not provide legal advice. Referrals for legal advice can be made to our related law firm, HeadStart Counsel." } }, { "@type": "Question", "name": "When does AML/CTF Tranche 2 commence in Australia?", "acceptedAnswer": { "@type": "Answer", "text": "Tranche 2 AML/CTF obligations commence on 1 July 2026. All reporting entities in designated sectors including lawyers, accountants, real estate agents, conveyancers, and trust and company service providers must have their AML/CTF programs in place by this date." } } ] }, { "@context": "https://schema.org", "@type": "Article", "headline": "Insolvency Practitioners & AML/CTF (It Depends)", "description": "Insolvency practitioners aren't automatically excluded from AML/CTF. Learn which appointments trigger designated services and when s 6(5E) applies.", "datePublished": "2026-02-05", "dateModified": "2026-02-05", "url": "https://www.headstartdocs.com.au/tranche-2-resources/insolvency-practitioners-aml-guide", "image": "https://www.headstartdocs.com.au/logo-512.png", "inLanguage": "en-AU", "isPartOf": { "@type": "WebSite", "name": "HeadStart Docs", "url": "https://www.headstartdocs.com.au" }, "about": { "@type": "Thing", "name": "AML/CTF Compliance", "description": "Anti-Money Laundering and Counter-Terrorism Financing compliance for Australian businesses under Tranche 2" }, "author": { "@type": "Organization", "name": "HeadStart Docs" }, "publisher": { "@type": "Organization", "name": "HeadStart Docs", "logo": { "@type": "ImageObject", "url": "https://www.headstartdocs.com.au/logo-512.png" } } }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://www.headstartdocs.com.au" }, { "@type": "ListItem", "position": 2, "name": "Tranche 2 Resources", "item": "https://www.headstartdocs.com.au/tranche-2-resources" }, { "@type": "ListItem", "position": 3, "name": "Insolvency Practitioners AML Guide", "item": "https://www.headstartdocs.com.au/tranche-2-resources/insolvency-practitioners-aml-guide" } ] } ] --- [Get Started ](/checkout) We use cookies to enhance your experience and analyse traffic. [Privacy Policy](/privacy) Essential OnlyAccept All [Skip to main content](#main-content) [ ![HeadStart Docs](/assets/logo-dark-bg-CUivuKJ8.png)![HeadStart Docs](/assets/logo-light-bg-D5BRMGqf.png) ](/) [Home ](/) Features [Programs ](/programs) Resources Sectors [Log in ](/auth) [Portal](/aml-landing) [Tranche 2 Resources](/tranche-2-resources)/ Insolvency Practitioners # Are Insolvency Practitioners Covered by AML/CTF? (It Depends) Insolvency practitioners are **NOT automatically excluded** from AML/CTF obligations. The s 6(5E) exclusion only applies to _some_ appointment types for _some_ designated services. Updated February 2026• 8 min read ## Quick Answer **It depends on your appointment type.** Court-appointed liquidators and trustees in bankruptcy get exclusions for Items 1, 2, 3 and 7. But creditor-appointed receivers and members' voluntary liquidations get **no exclusions**. And Item 6 (Restructuring) is **never excluded** regardless of appointment type. ## The s 6(5E) Exclusion Explained Section 6(5E) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 provides a limited exclusion for certain insolvency practitioners. But it is narrower than many practitioners assume. ### What Happened During Consultation During the 2024 consultation phase, industry bodies including ARITA (Australian Restructuring Insolvency & Turnaround Association) argued that insolvency practitioners are already heavily regulated and that the ML/TF risk is low because practitioners _take control_ of assets, effectively displacing potential criminals from control. While the government acknowledged these submissions, they largely retained the **activity-based definition**. This means unless AUSTRAC issues a specific "Insolvency Rule" exemption (which they have the power to do under the Act, but have not guaranteed), you must assume you are caught for non-court appointments. ### What IS Excluded (s 6(5E)) - Registered liquidators appointed by a **court** (Items 1, 2, 3, 7) - Trustees in bankruptcy appointed by **court or AFSA** (Items 1, 2, 3, 7) - Other persons acting pursuant to **court or tribunal orders** ### What is NOT Excluded - **Creditor-appointed receivers** (private appointment, no court involvement) - **Members' voluntary liquidations (MVL)** (shareholder resolution, no court) - **Voluntary administrators** (pre-DOCA, before court involvement) - **Controllers appointed by secured creditors** under security documents ## The Restructuring Trap (Item 6) Item 6 of Table 6 covers "Creation or Restructure of a Body Corporate or Legal Arrangement". This is where insolvency practitioners are most likely to be caught, because **there is no s 6(5E) exclusion for Item 6**. ### AUSTRAC Guidance on Restructuring > "An insolvency practitioner changing a company limited by guarantee into a company limited by shares, splitting one body corporate into multiple bodies corporate or merging multiple bodies corporate are examples of a restructure. The insolvency practitioner would be helping their client to directly advance the restructure of a body corporate." > "An insolvency practitioner that assists a body corporate to restructure its internal governance and business operations, including reducing staff numbers at a particular plant or focusing on producing more profitable product lines, isn't providing a designated service as this doesn't change the legal structure of the body corporate." #### IS a Designated Service - • Changing company type (Ltd → Pty Ltd) - • Splitting one entity into multiple entities - • Merging multiple entities into one - • Creating new holding company structures #### NOT a Designated Service - • Reducing staff numbers - • Changing product lines - • Internal governance changes - • Business strategy adjustments ## Which Items Affect Insolvency Practitioners? The following table maps Table 6 Items to typical insolvency activities and shows whether the s 6(5E) exclusion applies: Item Activity s 6(5E) Exclusion? Item 1 Real estate transfers in administration Yes (court/AFSA only) Item 2 Business/company transfers Yes (court/AFSA only) Item 3 Holding/managing client assets Yes (court/AFSA only) Item 6 Restructuring entities NO - Never excluded Item 7 Acting as trustee/nominee Yes (court/AFSA only) ### Critical Point Even if you are a court-appointed liquidator with the s 6(5E) exclusion for Items 1, 2, 3 and 7, you are **still caught by Item 6** if you assist with legal restructuring (e.g. converting company type, splitting entities, merging entities). ## What Should You Do? 1. **Determine your appointment type** Court/AFSA appointment = potential exclusion. Private/creditor appointment = no exclusion. 2. **Map your activities to Table 6 Items** Identify which of Items 1, 2, 3, 6, 7, 8, 9 are relevant to your practice. 3. **Assess whether s 6(5E) applies** Remember: it only applies to Items 1, 2, 3, 7 and only for court/AFSA appointments. 4. **Enrol with AUSTRAC if required** If you provide any designated service without an applicable exclusion, you must enrol as a reporting entity. ## Key Takeaway Insolvency practitioners cannot assume they are excluded from AML/CTF obligations. The s 6(5E) exclusion is appointment-specific and item-specific. Restructuring activities (Item 6) that change legal structure are **never excluded**. If you are unsure whether your activities trigger designated services, seek specific advice. ### Need AML/CTF Documentation for Your Practice? HeadStart Docs™ provides digital products tailored for insolvency practitioners entering the AML/CTF regime. Our documentation addresses the unique challenges of your sector. [Insolvency Practitioner Products](/insolvency-practitioners) [Try Decision Trees](/decision-trees) **Disclaimer:** This article is general information only. It is not legal, financial or compliance advice. HeadStart Docs™ provides free compliance documents, not legal services. We do not guarantee the accuracy of information provided. Obligations may apply depending on your designated services. Always confirm your specific requirements with a qualified adviser. Need a lawyer to review your AML/CTF program? [HeadStart Counsel](https://headstartcounsel.com.au/get-started) offers fixed-fee tailoring from $1,800+GST. Separate entity and engagement. ### Related Articles [ #### What is a "Legal Arrangement" Under the AML/CTF Act? Understanding the s 5 definition ](/tranche-2-resources/legal-arrangement-definition)[ #### AUSTRAC Enrolment Guide for Tranche 2 Step-by-step enrolment process ](/tranche-2-resources/austrac-enrolment-guide) ![HeadStart Docs](/assets/logo-dark-bg-CUivuKJ8.png)![HeadStart Docs](/assets/logo-light-bg-D5BRMGqf.png) [![HeadStart Counsel](/assets/headstart-counsel-logo-dark-DW8mV5rY.png)](https://www.headstartcounsel.com.au/)[![HeadStart Search](/assets/headstart-search-logo-dark-C68UhGXl.png)](/sanctions-search)![HeadStart Verify](/assets/headstart-verify-dark-Dtad3197.png) ### Sectors [Accounting](/accounting)[Business Brokers](/business-brokers)[Buyers Agent](/programs/buyers-agent-aml-program)[Conveyancing](/conveyancing)[Insolvency](/insolvency-practitioners)[Legal](/law-practice)[Nominee Director](/programs/nominee-director-aml-program)[Precious Metals, Stones & Products](/precious-metals)[Property Development](/property-developers)[Real Estate](/real-estate)[TCSPs](/tcsp)[Virtual Address](/virtual-address) ### Resources [Free Resources](/tranche-2-resources)[Decision Trees](/decision-trees)[Tranche 2 Guide](/tranche-2)[Podcast](/podcast)[Free Sector Reports](/sector-reports)[Implementation Timeline](/timeline)[Sanctions Search](/sanctions-search)[AUSTRAC Starter Kits](/tranche-2-resources/austrac-starter-program-kits)[Budgeting for Compliance](/tranche-2-resources/budgeting-amlctf-compliance) ### Programs [Portal + AML Programs](/programs)[Pricing](/pricing)[White Label](/white-label)[External CRMs](/integrations)[AML Portal](/aml-landing)[Plug & Play Technology](/plug-and-play)[Lawyer in the Loop](/features/lawyer-in-the-loop) ### Legal [Terms & Conditions](/terms)[Privacy](/privacy) ### Connect [Programs](/programs)[Podcast](/podcast)[Feedback](/report-problem)[Our Mission](/our-mission)[Partnerships](/partnerships) ### Events [AML Conference 2026](/conference) Powered by Stripe SSL Secured 2026 Ready © HeadStart Docs Pty Ltd (ABN 12 691 347 823). HeadStart Docs™ is a digital publisher and platform provider. We sell digital compliance products including publications and portal access to our AML Portal; we do not provide legal advice or services. The content on this website and in our products is for general information purposes only, does not consider your individual and business circumstances, and should not be relied on as legal advice. Referrals for legal advice can be made, on request, to HeadStart Counsel, the registered trading name of Astris Law Pty Ltd, a related incorporated legal practice with the same director and beneficial owner as HeadStart Docs. You are free to engage any legal practitioner of your choice.