- Draft AML/CTF Rules for customer identification concerning securities issues and RSA dealings - 24 December 2007
- Draft AML/CTF Rules for same-person and person-to-person electronic funds transfer instructions - 21 December 2007
- Draft AML/CTF Rules relating to customer identification procedures in takeovers, schemes of arrangement, business disposals and business assignments - 21 December 2007
- New AML obligation in force - 12 December 2007
- Takeovers and Mergers - AML/CTF Scenarios - 11 October 2007
- AUSTRAC finalises three guidance notes - September 2007
- AUSTRAC releases Draft AML/CTF Rules - September 2007
- Release of Tranche 2 Proposals - 14 August 2007
- Finalised Guidance from AUSTRAC - 14 August 2007
- American Express agrees to AML penalties of US$65m - 8 August 2007
- AUSTRAC finalises three Draft Guidance Notes - 31 July 2007
- AUSTRAC issued Draft Rules relating to certain items in table 1 of section 6 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) - 12 July 2007
- AUSTRAC issued Draft Rules on ongoing customer due diligence - 5 July 2007
- AUSTRAC issued Draft Guidance Note on Opening an Account - 4 July 2007
- AUSTRAC issued Draft Guidance Note on Risk Management and AML/CTF programs - 4 July 2007
- AUSTRAC registers Rules on compliance reports - 28 June 2007
- Correspondent banking obligations commence - 12 June 2007
- AUSTRAC issued for public consultation Draft Guidance Note on Correspondent Banking Rules - 4 June 2007
- AUSTRAC issued for public consultation Draft Rules on 'approved third-party bill payment system' definition - 29 May 2007
- AUSTRAC issued for public consultation Draft Rules on Electronic Funds Transfer Instructions - 29 May 2007
- AUSTRAC issued for public consultation a Draft Guidance Note on Designated Business Groups - 29 May 2007
- AUSTRAC issued for public consultation a Draft Guidance Note on Exemptions and Modifications - 25 May 2007
- AUSTRAC released five regulatory policies - 25 May 2007
- AUSTRAC released a Self Assessment Questionnaire - 23 May 2007
- AUSTRAC issued for public consultation a Draft Guidance Note on the Register of Providers of Designated Remittance Services - 18 May 2007
- Draft AML/CTF Rules on compliance reporting released for public consultation - 15 May 2007
- Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 2) registered - 13 April 2007
- Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) registered - 13 April 2007
- The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2007 (Cth) received Royal Assent - 12 April 2007
- Minister for Justice and Customs, Christopher Ellison, issued Policy (Civil Penalty Orders) Principles 2006 - 31 January 2007
Draft AML/CTF Rules for customer identification concerning securities issues and RSA dealings - 24 December 2007
AUSTRAC is proposing to specify circumstances in which a reporting entity may carry out customer identification procedures and searches after commencing either the issuing of a security or accepting a contribution, roll-over or transfer to a retirement savings account (RSA) in respect of the new RSA holder (customer). In these specified circumstances, the reporting entity has up to five days, from the date on which it commenced to provide the specified designated service, to carry out the applicable customer identification procedure.
The Draft Rules can be found on AUSTRAC's website.
Draft AML/CTF Rules for same-person and person-to-person electronic funds transfer instructions - 21 December 2007
This proposed Draft Rule intends to broaden the 'regulatory sphere' and ensure that the reporting obligations are extended to non-bank institutions. Currently Sections 8 and 9 of the AML/CTF Act provide for person-to-person electronic funds transfer instructions and same-person electronic funds transfer instructions involving an authorised deposit-taking institution, bank, building society or credit union as an ordering institution or beneficiary institution. The Draft Rules expand the definition to include other types of service providers in tables 1, 2 and 3 in section 6 of the AML/CTF Act as ordering institutions or beneficiary institutions for the purposes of these kinds of electronic funds transfer instructions. AUSTRAC has indicated that it has received a large number of comments on these particular Draft Rules. Consequently these Draft Rules may be significantly amended. The Draft Rules can be found on AUSTRAC's website.
Draft AML/CTF Rules relating to customer identification procedures in takeovers, schemes of arrangement, business disposals and business assignments - 21 December 2007
A series of Draft Rules pertaining to the regulation of customer identification procedures are being proposed by AUSTRAC. The changes will mean that where a reporting entity (the first entity) is taken over by another reporting entity (the second entity); or transfers its shares to the second entity pursuant to a 'scheme of arrangement'; or sells to a second entity a part of the first entity's business; or assigns to a second entity a part of the first entity's business, the second entity is not required to carry out the customer identification procedure in Division 4 of Part 2 of the AML/CTF Act in relation to first entity's customers (pre-commencement and post-commencement customers). This exemption only applies in limited circumstances. Namely, if prior to the takeover, scheme of arrangement, business disposal or business assignment, the second entity has determined the money laundering or terrorism financing risk it may reasonably face in providing a designated service to the first entity's customers. Changes in circumstances may re-trigger reporting obligations.
New AML obligations in force - 12 December 2007
As from today, businesses that are regulated as reporting entities under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) will need to:
- carry out a customer identification procedures on all new customers;
- record and maintain records of those procedures; and
- adopt and maintain an Anti-Money Laundering and Counter-Terrorism Financing Program.
Reporting entities that are not yet compliant may be able to rely on the 15-month prosecution-free period, but only if they are in a position to demonstrate to the regulator, the Australian Transaction Reports and Analysis Centre (AUSTRAC), that they are taking reasonable steps towards compliance.
AUSTRAC CEO Neil Jensen has encouraged businesses that are not yet fully compliant to contact AUSTRAC and indicated that where businesses are candid and co-operative, AUSTRAC is likely to be more open to resolving compliance issues.
Takeovers and Mergers - AML/CTF Scenarios - 11 October 2007
AUSTRAC has included a set of scenarios on customer identification requirements after a merger or takeover occurs. The scenarios outline the circumstances in which pre-12 December 2007 customers and post-12 December 2007 customers need to be identified.
AUSTRAC finalises three guidance notes - September 2007
AUSTRAC has released Guidance Notes for industry on:
- the Application of the Policy (Civil Penalty Orders) Principles 2006.
This Guidance Note describes AUSTRAC's approach to the Policy Principles, including what are 'reasonable steps' toward compliance within the 15-month prosecution-free period.
Allens has published a Focus: Anti-money Laundering - September 2007 which explains the Guidance Note and highlights other issues with the prosecution-free period - in particular what identification/verification may be required for customers of a reporting entity who become customers after 12 December 2007, but before the reporting entity's AML/CTF customer identification systems become fully operational.
- Risk Management and AML/CTF Programs;
- Exemptions and Modifications under the AML/CTF Act.
The Guidance Notes can be found on AUSTRAC's website.
AUSTRAC releases Draft AML/CTF Rules - September 2007
AUSTRAC has released Draft AML/CTF Rules:
- for ongoing customer due diligence;
- for reportable details relating to threshold transaction reports;
- relating to item 35 - issuing or selling a security or derivative;
- for reportable details relating to international funds transfer instructions;
- for designated remittance arrangements;
- for record-keeping requirements under the AML/CTF Act.
The Draft AML/CTF Rules can be found on AUSTRAC's website.
Release of Tranche 2 Proposals - 14 August 2007
The Federal Government has released for consultation proposed amendments to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (the AML/CTF Act) to implement the second tranche of its AML/CTF reforms. The amendments would extend the AML/CTF obligations contained in the AML/CTF Act to specified activities of real estate agents, dealers in precious stones and jewellery, law firms, accounting firms and trust and company services providers.
The amendments are contained in new lists of designated services for insertion in section 6 of the AML/CTF Act. These include:
- for real estate agents:
- providing a real estate agency service or a conveyancing service where the service is provided in the course of carrying on a business; and
- buying or selling land on behalf of a person, or providing tailored
advice to a person in relation to buying or selling land, where the
service is provided in the course of carrying on a business;
- for dealers in precious stones and jewellery buying or selling precious stones or precious jewellery in the course of carrying on a business. Precious jewellery is defined as jewellery that consists wholly or partly of precious metal or stones, and precious metal and precious stones are also defined.
- for law firms and accounting firms, any of the following services if
provided in the course of carrying on a business:
- managing on behalf of a person, or giving advice on the management of, accounts, physical currency or property of that person;
- making arrangements or preparations on behalf of a person in connection with the sale or purchase of a business;
- making arrangements or preparations on behalf of the promoters of a new company, or providing tailored advice to the promoters of a new company, in connection with the formation of the company;
- making arrangements or preparations on behalf of the promoters of a new company, or providing tailored advice to the promoters of a new company in relation to equity finance or debt finance for the new company;
- making arrangements or preparations on behalf of a company or providing tailored advice to a company, in relation to equity finance or debt finance for the company;
- making arrangements or preparations or providing tailored advice in connection with the creation of a trust or partnership; and
- carrying out on behalf of a partnership, company or trust, any of its management activities or day to day operations, or giving tailored advice in relation to those activities or operations.
- for trust and company services providers, any of the
following services if provided in the course of carrying on a business:
- being, or acting as or arranging for another person to act as a director or secretary of a company or a partner of a partnership;
- providing a registered office, business address, business accommodation, correspondence or administrative address for a company, partnership or trust;
- at the request of a person, acting or arranging for a third person to act as a trustee of a trust; and
- being, acting or arranging for a third party to act as nominee shareholder.
The consultation period ends on 7 September 2007. The proposed amendments can be found on the Attorney General's website.
Finalised Guidance from AUSTRAC - 14 August 2007
AUSTRAC has released Guidance Notes for industry on:
- the Register of Providers of Designated Remittance Services;
- exemptions and modifications under the AML/CTF Act; and
- correspondent banking.
The Guidance Notes can be found on AUSTRAC's website.
American Express agrees to AML penalties of US$65m - 8 August 2007
American Express Bank International of Miami, Florida (AEBI), and American Express Travel Related Services Company, Inc. a money service business located in Salt Lake City, Utah, have agreed to pay a total of US$65 million for failing to comply with US AML legislation.
AEBI was found to have failed to establish and maintain an adequate anti-money laundering program. FinCEN determined that AEBI had failed to implement adequate internal controls, failed to conduct adequate independent testing, and failed to designate compliance personnel to ensure compliance with the Bank Secrecy Act.
AEBI operated in high-risk jurisdictions and business lines without commensurate systems and controls to direct and report money laundering and other suspicious activity in a timely manner. FinCEN also determined that the money service business failed to file a significant number of suspicious activity reports.
'Today's action by the Federal Reserve underscores the necessity for banking institutions to have anti-money laundering controls in place that are commensurate with the level of risk associated with their operations. Every banking organisation should ensure that its risk-management practices are effective in mitigating the risks associated with its particular operations' said Roger T. Cole, director of the Federal Reserve Board's Division of Banking Supervision and Regulation in a joint press release by the Board of Governors of the Federal Reserve and FinCEN.
The size of the payments by American Express serve to reinforce the seriousness of the global fight against money laundering and terrorism financing and the lengths to which organisations need to go to adequately deal with the risks of being involved in money laundering or terrorism financing.
AUSTRAC finalises three Draft Guidance Notes - 31 July 2007
AUSTRAC has issued three Guidance Notes in finalised form. The Guidance Notes relate to Correspondent Banking, Exemptions and Modifications under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) and Register of Providers of Designated Remittance Services. The Guidance Notes were initially issued by AUSTRAC in draft form for public consultation in May and June 2007.
The Guidance Notes can be found on AUSTRAC's website.
AUSTRAC issued Draft Rules relating to certain items in table 1 of section 6 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) - 12 July 2007
AUSTRAC issued for public consultation Draft Rules relating to certain threshold amounts in respect of certain designated services (items 17, 25, 26 and 50) in table 1 of section 6 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth)). The consultation period ends 19 July 2007. The Draft Rules can be found on AUSTRAC's website.
AUSTRAC issued Draft Rules on ongoing customer due diligence - 5 July 2007
AUSTRAC issued for public consultation Draft Rules on ongoing customer due diligence. The consultation period ends 19 July 2007. The Draft Rules can be found on AUSTRAC's website.
AUSTRAC issued Draft Guidance Note on Opening an Account - 4 July 2007
AUSTRAC issued for public consultation a Draft Guidance Note providing general information as to when an account has been opened for the purposes of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth). The consultation period ends 18 July 2007.
The Draft Guidance Note can be found at AUSTRAC's website.
AUSTRAC issued Draft Guidance Note on Risk Management and AML/CTF programs - 4 July 2007
AUSTRAC issued for public consultation a Draft Guidance Note providing general information about risk management frameworks and legislative requirements relating to AML/CTF programs. The consultation period ends 18 July 2007.
The Draft Guidance Note can be found at AUSTRAC's website.
AUSTRAC registers Rules on compliance reports - 28 June 2007
AML/CTF Rules relating to compliance reports and specifying the reporting and lodgement periods for such reports were made by the AUSTRAC CEO on 22 June 2007 and registered as the Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2007 (No. 1) on 28 June 2007.
Correspondent banking obligations commence - 12 June 2007
Correspondent banking obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) have commenced. As of today, before a financial institution can provide correspondent banking services to a financial institution located overseas, it must carry out a preliminary risk and due diligence assessment. If a financial institution has already entered into a correspondent banking relationship, it must carry out regular due diligence assessments. Records of due diligence assessments must be kept for seven years. Financial institutions are also now prohibited from entering into correspondent banking relationship with a shell bank, or another financial institution that has a correspondent banking relationship with a shell bank. Civil penalties may apply for breaches of the correspondent banking provisions. See Austrac's media release for more information.
AUSTRAC issued for public consultation Draft Guidance Note on Correspondent Banking Rules - 4 June 2007
AUSTRAC issued for public consultation a Draft Guidance Note on Correspondent
Banking under the the Anti-Money Laundering and Counter-Terrorism Financing
Act 2006 (Cth). The consultation period ends 18 June 2007.
The Draft Guidance Note can be found at
AUSTRAC's website.
AUSTRAC issued for public consultation Draft Rules on 'approved third-party bill payment system' definition - 29 May 2007
AUSTRAC issued for public consultation Draft Rules on the definition of an 'approved third-party bill payment system' under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth). The consultation period ends 12 June 2007.
AUSTRAC issued for public consultation Draft Rules on Electronic Funds Transfer Instructions - 29 May 2007
AUSTRAC issued for public consultation Draft Rules on Electronic Funds Transfer Instructions under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth). The consultation period ends 12 June 2007.
AUSTRAC issued for public consultation a Draft Guidance Note on Designated Business Groups - 29 May 2007
AUSTRAC issued for public consultation a Draft Guidance Note on Designated Business Groups under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth). The consultation period ends 12 June 2007. The Draft Guidance Note can be found on AUSTRAC's website.
AUSTRAC issued for public consultation a Draft Guidance Note on Exemptions and Modifications - 25 May 2007
AUSTRAC issued for public consultation a Draft Guidance Note on Exemptions and Modifications under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth). The consultation period ends 7 June 2007. The Draft Guidance Note can be found at on AUSTRAC's website.
AUSTRAC released five regulatory policies - 25 May 2007
AUSTRAC released five regulatory policies which set out its approach to education, monitoring, exemptions, enforcement and supervisory framework. The policies are intended to support compliance by reporting entities with their AML/CTF obligations. The policies, media-release and an AUSTRAC presentation on its compliance strategy can be found on AUSTRAC's website.
AUSTRAC released a Self Assessment Questionnaire - 23 May 2007
AUSTRAC released a Self Assessment Questionnaire which is intended to help reporting entities comply with their obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) and specifically assist reporting entities to 'track their progress' towards compliance. Details of the Questionnaire can be found on AUSTRAC's website.
AUSTRAC issued for public consultation a Draft Guidance Note on the Register of Providers of Designated Remittance Services - 18 May 2007
AUSTRAC issued for public consultation a Draft Guidance Note on the Register of Providers of Designated Remittance Services under Part 6 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth). The consultation period ends on 31 May 2007. (See Client update: Anti-money Laundering - 22 May 2007).
Draft AML/CTF Rules on compliance reporting released for public consultation - 15 May 2007
AUSTRAC released draft AML/CTF Rules for public consultation which contemplate that the first compliance reporting period under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) will cover the period from 13 December 2006 to 31 December 2007 and, significantly, that the deadline for lodging compliance reports will be 31 March 2008. The consultation period ends on 29 May 2007. (See Client update: Anti-money Laundering - 21 May 2007).
Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 2) registered - 13 April 2007
AML/CTF Rules relating to paragraph (e) of the definition of 'correspondent banking relationship' in section 5 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) were made by the AUSTRAC CEO on 10 April 2007 and registered on 13 April 2007 as Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 2). (See Focus: Anti-money Laundering - May 2007).
Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) registered - 13 April 2007
AML/CTF Rules relating to the 'designated business group' definition, correspondent banking, customer identification, AML/CTF programs and gambling services were made by the AUSTRAC CEO on 10 April 2007 and registered on 13 April 2007 as Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1). (See Focus: Anti-money Laundering - May 2007).
The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2007 (Cth) received Royal Assent - 12 April 2007
The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2007 (Cth) received Royal Assent. This Act makes technical amendments to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and implements some of the recommendations made by various parliamentary committees. (See Client update: Anti-money Laundering - February 2007 and Focus: Anti-money Laundering - May 2007).
Minister for Justice and Customs, Christopher Ellison, issued Policy (Civil Penalty Orders) Principles 2006 - 31 January 2007
Minister for Justice and Customs, Christopher Ellison, issued Policy (Civil Penalty Orders) Principles 2006 confirming that AUSTRAC will only apply for civil penalty orders against reporting entities in the 15 month period after each stage of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) takes effect, if the AUSTRAC CEO is satisfied that the reporting entity has failed to take reasonable steps to comply. (See Client update: Anti-money Laundering - February 2007).
