Compliance & regulation.

The licensing stack.

Sorted operates as an authorised representative under an Australian Financial Services Licence (AFSL). The licensee is responsible for our conduct under the Corporations Act, has audit rights over our operations, and approves the financial products we distribute. The AUDD token itself is issued by Novatti — a separately AFSL-licensed entity. Both businesses are registered with AUSTRAC for AML/CTF purposes.

What this means in practice.

• Customer due diligence. Every account holder is identity-verified at signup (Frankie KYC). High-value transactions trigger enhanced due diligence.
• Transaction monitoring. Real-time fraud / sanctions screening. Suspicious activity reports lodged with AUSTRAC where required.
• Reserves audits. Novatti publishes monthly attestations of AUDD reserves, reviewed by an independent registered auditor. Latest attestation.
• Complaints handling. Internal dispute resolution within 30 days. Unresolved complaints can be escalated to AFCA.
• Capital adequacy. The AFSL holder maintains regulatory capital well above ASIC minimums.

Where Sorted sits in the stack.

Sorted is the consumer interface. Novatti issues AUDD. Tier-1 Australian banks hold the reserves. Each tier is independently regulated.

Things we are not.

• Not an Authorised Deposit-taking Institution (ADI). We don't take deposits. Your balance is AUDD, not a deposit on Sorted's books.
• Not covered by the FCS directly. The FCS protects ADI deposits, not stablecoin balances. The reserves backing AUDD are held in FCS-protected ADI accounts, but the protection is at the issuer level.
• Not a credit provider. No lending. No buy-now-pay-later. No overdraft.

Anti-money laundering.

Standard AUSTRAC-regulated AML/CTF program: customer due diligence, ongoing monitoring, threshold transaction reporting (TTRs), suspicious matter reports (SMRs), and annual program review. We screen against the Australian and UN/OFAC sanctions lists.

Tax reporting.

We provide an end-of-financial-year statement of interest earned (the 3.33% yield), suitable for inclusion in your tax return. We don't withhold tax at source — that's your responsibility.