Content sourced from and aligned with AUSTRAC guidance and regulatory requirements.
Scenario
Retention Money Substitute
Swap withheld cash with a digital guarantee to improve project cash-flow without weakening governance.
Applicant
Contractor providing substitute security.
Beneficiary
Principal approving replacement for cash retention.
Issuer
Financial institution issuing the guarantee.
Required documents
- Contract retention terms / schedules
- Current retention balance and release triggers
- Proposed guarantee amount and expiry/reduction plan
- Go to CDD
Verify Signers (CDD)
Ensure authorised signers and company details are verified.
- Organisation profile
- Signer verification
- CDD approval status
- Open ARCgx
Request Substitute Guarantee (ARCgx)
Create a request to replace cash retention with a bank guarantee.
- Attach contract excerpt showing retention clause
- Provide retention ledger/balance
- Define reduction schedule / milestones
-
Issue & Replace
Issuer delivers digital guarantee; principal accepts and updates retention position.
- Verification checks
- Formal acceptance workflow
- Automated notifications and audit trail
-
Reductions & Final Release
Record milestone-based reductions and release at completion/handover.
- Milestone evidence & approvals
- Automated reminders for reductions
- Release confirmation and archive
What you get
- Improved cash-flow without compromising contract security
- Single record for acceptance, reductions, and release
- Lower admin overhead via templates and reminders