What Partners Need to Know About Responsible Lending Laws

Regulators are paying closer attention to finance referral arrangements than at any point since the Royal Commission. If you refer clients for finance, whether you're a dealer, accountant, or adviser, the rules that govern what you can and can't do are tighter than most people realise. And they're about to get tighter again.

Earlier this year, CBA self-reported $1 billion in potentially fraudulent loans to ASIC and NSW Police. The fraud ran through its introducer program, the channel where accountants, lawyers, real estate agents, and other professionals earn commissions for referring clients. CBA has since restricted the program to existing customers who have held a loan for at least six months.

AUSTRAC followed up by warning the major banks to increase scrutiny of their referral partners. The watchdog is now examining referral data from at least 10 major lenders, looking for patterns of fraud and AML control failures. For partners in legitimate referral arrangements, this means the environment has shifted. Compliance that used to be a background process is now front and centre.

The NCCP referrer exemption: where the lines are

Under the National Consumer Credit Protection Act 2009, referring a client for finance is a regulated credit activity. But there's a narrow exemption that allows unlicensed referrers to operate, provided they stay within strict boundaries.

What you can do

• Tell a client that a specific credit licensee (like Emu Money) provides finance
• Give the client the licensee's contact details
• Disclose any benefit or commission you receive from the referral

What you can't do

• Suggest a specific product ("you should get a chattel mortgage")
• Endorse the provider ("they'll get you a better rate than your bank")
• Help the client fill out an application or submit documents
• Provide any form of credit assistance

The moment you cross from "informing" to "suggesting," you're outside the exemption. That means you're engaged in a regulated credit activity without a licence, which is a breach of the NCCP Act. ASIC has taken action on this before, and given the current enforcement environment, referrers operating in the grey zone face real risk.

If you're unsure whether your current referral conversations stay within the exemption, that's worth reviewing. The safe position is simple: introduce the client, disclose your arrangement, and let the licensed broker handle the rest.

AUSTRAC Tranche 2: new obligations landing 1 July 2026

This is the big change most partners haven't heard about yet. From 1 July 2026, AUSTRAC's Tranche 2 AML/CTF reforms bring accountants, lawyers, real estate agents, and other professional service providers under the anti-money laundering regime for the first time.

If you're in one of these professions, you'll need to:

• Enrol with AUSTRAC (enrolment opened 31 March 2026, deadline 29 July 2026)
• Implement an AML/CTF program covering risk assessment, customer due diligence, and ongoing transaction monitoring
• Appoint a compliance officer responsible for the program
• Report suspicious activity directly to AUSTRAC

This doesn't just apply to your finance referral work. It covers your core professional services, including work on property transactions, managing trust accounts, and structuring business arrangements. But it has direct implications for referral partners: if you're introducing clients for finance, your AML/CTF obligations now extend to understanding where those clients' funds come from and flagging anything unusual.

The reforms close a gap that's existed since 2006, when Tranche 1 brought banks and financial institutions under the regime. AUSTRAC has been clear that it expects Tranche 2 entities to be "compliance-ready" by 1 July, not scrambling to catch up after.

What good compliance looks like for referral partners

You don't need a legal team to get this right. Most of it comes down to three habits:

1. Document the arrangement. Have a written referral agreement that spells out what you do, what the licensee does, and what commission you receive. If ASIC or AUSTRAC ever asks, you want paper, not a handshake.

2. Disclose at the point of referral. Every time you refer a client, tell them you may receive a benefit. This isn't optional, it's a condition of the NCCP exemption. A simple verbal disclosure plus a line in your engagement letter covers it.

3. Stay in your lane. Refer and step back. Don't help with applications, don't discuss product features, don't compare lenders. The licensed broker handles the credit conversation. Your job is the introduction.

If you're an accountant, lawyer, or real estate agent, add a fourth: start your AUSTRAC enrolment now. The deadline is 29 July 2026, but standing up an AML/CTF program takes time. Don't leave it to June.

What to do next

Review your current referral arrangement. If you don't have a written agreement, get one in place. If you're unsure whether your referral conversations stay within the NCCP exemption, ask your licensee to walk you through the boundaries.

If you're in a Tranche 2 profession, visit AUSTRAC's reform hub and start the enrolment process. The obligations are real and the timeline is short.

Emu Money's partnerships team can help you set up a compliant referral process that works for your business and your clients. If you're already a partner, reach out to your BDM. If you're not, talk to the team about how it works.