The Federal Government has released a revised version of its exposure draft of the Anti-Money Laundering and Counter Terrorism Financing (AML/CTF) Bill containing many amendments suggested by the financial services sector for public comment.
Minister for Justice and Customs Chris Ellison said: “The changes reflect the Government’s response to calls for a more flexible risk-based framework allowing businesses to identify, manage and mitigate AML/CTF tasks.”
Under the revisions to the bill, identification obligations for superannuation funds will apply on payout of a fund instead of upfront. Also, financial planners will only be required to identify customers when they actually purchase an investment product rather than when the advise is offered.
Self-managed superannuation funds (SMSFs) will now be regulated via the second tranche of measures but any initial risks in this area will be addressed when the SMSF member opens an account with a financial institution.
Several industry bodies felt the changes were a positive step.
“The new version responds directly to the concerns raised by ASFA (Association of Superannuation Funds of Australia) in extensive consultation and submissions. The previous draft required up-front identification of new members and failed to recognise the low risk presented by superannuation,” ASFA director of policy and research Dr Michaela Anderson said.
The Australian Bankers’ Association also applauded the amendments, believing they reflected the co-operative approach to the design of the legislation between government and the finance industry.
While welcoming the changes, the Investment and Financial Services Association (IFSA) had already identified issues it will be pursuing that remained unresolved.
IFSA deputy chief executive John O’Shaughnessy said: “One such outstanding issue on which IFSA will stand firm is the need for a three-year transition period to the new regime.
“IFSA has previously stressed that not all industry sectors have been subject to AML obligations in the past and therefore more time will be needed to implement the necessary AML/CTF systems and controls,” he added.
There will now be a further three-week period for public comment regarding the revised legislative package.
