Australia's flex-space boom has a new compliance tenant: anti-money laundering law
Visibl
Key Facts:- Since 1 July 2026, flexible workspace operators in Australia that provide a registered office or principal place of business address — even at no charge — are classified as regulated businesses under the country's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws and must enrol with AUSTRAC within 28 days of first providing the service.
- The change targets the risk of criminals using third-party addresses to make shell companies appear legitimate, with AUSTRAC requiring operators to verify and risk-rate member companies, partnerships, and trusts — including their beneficial owners — before providing the address service.
- In-scope operators must appoint an AML/CTF compliance officer, implement a written risk assessment and policies, monitor members on an ongoing basis, report suspicious matters, train staff, and retain records for generally seven years after a relationship ends.
- Existing members do not need to be re-verified immediately; due diligence is triggered by a suspicious matter or a significant change that raises a member's risk rating, whereas all new members must be verified before using the address.
- Australian compliance platform Visibl, which assisted co-working operator Tank Stream Labs — which has eight sites and more than 2,000 members — advises operators to verify all new members at sign-up, regardless of whether they initially intend to use the registered office address service.
MEDIA RELEASE
For immediate release: 3 November 2026
Australia's flex-space boom has a new compliance tenant: anti-money laundering law
Co-working, serviced office and virtual office operators that provide a registered office address are now regulated by AUSTRAC, even when the address is free
SYDNEY: Australia's growing flexible workspace sector is now part of the national anti-money laundering regime, and operators need to make sure their compliance keeps pace with their growth, according to Australian compliance platform Visibl.
Since 1 July 2026, providing a registered office or principal place of business address in the course of carrying on a business has been a designated service under Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws. Any co-working space, serviced office or virtual office provider whose address can be used that way by member companies, partnerships or trusts is now an AUSTRAC-regulated business, whether it charges for the address or not.
The change comes as flexible workspace continues to expand, with landlord allocation to flex space reported to have doubled over the past three years, according to Flexible Workspace Australia data reported by Allwork.Space.
AUSTRAC's guidance explains that the service covers addresses a company may notify to ASIC when it doesn't have a true office address of its own. A registered office address gives a company a credible, physical presence, which is why criminals can use third-party addresses to make shell companies look legitimate and hide who really controls them.
"Flexible workspace operators are in the business of making it easy for people to get started, and compliance doesn't have to change that," said Kaan Yuksel, founder and managing director of Visibl, an AML specialist and an admitted lawyer. "The law now asks anyone providing a registered office address to verify and risk-rate the companies and trusts using your address before providing the service. The operators who build that into sign-up now will find it simply becomes part of welcoming a new member."
In-scope operators must enrol with AUSTRAC within 28 days of first providing the service after 1 July 2026, appoint an AML/CTF compliance officer, who can oversee every site, and put in place an AML/CTF risk assessment and written AML/CTF policies. They must verify and risk-rate the companies using their address, including the people who own or control them, before providing the service. They also need to monitor members over time, report suspicious matters to AUSTRAC, train front-of-house teams and keep records, generally for seven years from the end of the relationship.
Operators don't need to re-verify every existing member overnight. Under AUSTRAC's rules for customers served before obligations began, due diligence is triggered if a suspicious matter report is needed or a significant change raises a member's risk to medium or high. New members must be checked before they start using the address.
"Verify every member at sign-up, not just the ones using your address," Mr Yuksel said. "Members change plans from time to time, and it's much easier to do it once at the start than to chase people later."
Co-working operator Tank Stream Labs, which runs eight sites with more than 2,000 members, has already made the shift with Visibl's help.
"When we learned our registered office address service brought us into AUSTRAC's regime, Visibl made it simple. Compliance went from a worry to something that just works," said Cassandra Diaz, COO of Tank Stream Labs.
ENDS
About us:
Visibl is an Australian AML compliance platform for the real estate, legal and accounting sectors, combining certified AML specialists with automation: AUSTRAC enrolment, a tailored risk-based AML/CTF program, screening, training, audit-ready reports and records. www.visibl.com.au
Contact details:
Lucy Allen
0435758509