AML/CTF requirements stepped up
Providers of financial, bullion, gambling and money transfer services will be subject to new reporting requirements and ongoing customer due diligence (OCDD) as “reporting entities” under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) from December 12, 2008.
The new rules require reporting entities that provide one or more designated service under the AML/CTF Act to report suspicious matters to AUSTRAC as well as report, where applicable, threshold transactions for the transfer of physical or E-currency sums greater than $10,000, and international funds transfer instructions from clients wishing to transfer money or property to or from a foreign country. AUSTRAC said these reports will make a significant contribution to combating money laundering, terrorism financing and other major crimes.
Reporting entities must also conduct OCDD to monitor customers and their transactions on an ongoing basis. Australian Financial Services Licence holders who ‘arrange’ for a person to receive other designated services are excluded from the OCDD obligations, however, they are subject to the obligations when providing any other designated service.
The OCDD has three mandatory components: collecting and verifying additional ‘know your customer’ information, implementing transaction monitoring and enhanced customer due diligence programs.
The AML/CTF Act, which takes a risk-based approach to Australia’s anti-money laundering and counter terrorism regulatory regime, has had staggered implementation since its Royal Assent in 2006. A statement from AUSTRAC said the Act has been implemented in this way “to allow industry to develop the necessary systems and procedures in the most cost-efficient way in order to meet their obligations”.
The new reporting requirements will primarily be submitted electronically through AUSTRAC Online.
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