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Revised anti-money laundering Bill a step forward

13 July 2006

The revised Anti-Money Laundering and Counter-Terrorism Financing Bill released today by the Federal Government is more business-friendly than previous versions of the Bill, although the vital question of a transition period was still unclear.

Allens Arthur Robinson partner Peter Jones said the Federal Government had listened to the financial services industry concerns about the previous version of the Bill, which was perceived as being overly prescriptive.

'The revised Bill has taken on board a number of industry suggestions as to how to make the AML/CTF regime effective, while at the same time allowing those institutions covered by the legislation sufficient flexibility to decide how to identify and manage their AML/CTF risks,' Mr Jones said.

The result is a more risk based approach outlined in the revised Bill.

Other changes that will be welcomed by the financial sector include:

  • reporting entities will now be able to rely on electronic verification for customer identification;
  • the introduction of safe harbour rules for customer identification for lower and medium risk customers;
  • the disappearance of risk classification as a prescriptive obligation; and
  • a global due diligence defence.

However, Mr Jones said it was disappointing that no transition period for the rollout of the legislation was announced today.

'A decision on the transition period will need to be made quickly to allow industry, which would like a two-year transition period, to plan and properly resource the substantial changes that will be required to comply.'

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Notes for editors.

Allens Arthur Robinson was Best Large Professional Services Firm of the Year and Best Large Law Firm in the 2006 BRW-St.George Client Choice awards, and the Chambers and Partners 2005 Australasian Law Firm of the Year. AAR has been awarded an EOWA Employer of Choice for Women citation by the Federal Government's Equal Opportunity for Women in the Workplace Agency (EOWA). Allens Arthur Robinson offers one of the most comprehensive legal networks in Australia and Asia with staff based in 14 cities and eight countries across the region. It was founded in 1822.