Tougher rules for SMSFs
The fact that self-managed superannuation funds (SMSFs) are not reporting entities for the purposes of Anti-Money Laundering/Counter Terrorism Financing (AML/CTF) regulations makes them more likely to be used for money laundering and terrorism financing purposes.
The Association of Superannuation Funds of Australia (ASFA) made this claim in a submission to the Australian Transaction Reports and Analysis Centre (AUSTRAC), welcoming amendments to reporting rules ending the use of the so-called Simplified Trustee Verification Procedures (STVPs) by SMSFs.
ASFA said that while it recognised that the majority of SMSFs were fully compliant and managed in accordance with the legislative framework in which they operated, there had been historical instances of fraud and/or criminal abuse perpetrated through SMSFs.
“As such, we support the proposed amendments that will require reporting entities to conduct a full customer identification procedure when dealing with SMSFs,” the submission said.
AUTHOR
Mike Taylor
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
