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AML/CTF compliance reports due by 31 March 2009
7 January 2009
All reporting entities under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) must submit compliance reports to AUSTRAC by 31 March 2009. It is required under the AML/CTF Act in Part 3, Division 5, which came into effect on 12 June 2007.
Who must submit a report?
- Individuals, companies or other entities that provide a 'designated service' as defined in the AML/CTF Act. Examples of reporting entities include banks, foreign exchange dealers, and other financial service providers.
- Any entity who offered designated services during any part of the reporting period must still complete an AML/CTF compliance report for the period they did offer those services.
Australian financial services licence (AFSL) holders who only provide the designated service of making arrangements for a person to receive another designated service, do not have to submit an AML/CTF compliance report.
What is the reporting period?
The report must cover the period from 1 January 2008 to 31 December 2008.
What should the report include?
The report must provide information about reporting entity’s compliance with the AML/CTF Act, the regulations and the AML/CTF Rules, including, amongst other things, how the reporting entity has:
- assessed the money laundering/terrorism financing risk posed by its customer types, its new and existing designated services and the methods of delivery of those services
- screened its employees
- implemented procedures for collecting and verifying ‘know your customer’ (KYC) information
- implemented procedures for responding to discrepancies that have arisen in the course of verifying KYC information
- progressed in meeting the new ongoing customer due diligence obligations including transaction monitoring and enhanced customer due diligence where there was high money laundering/terrorism financing risk or when a suspicion had arisen
- implemented procedures for reporting suspicious matters
- conducted an independent internal or external review of its AML/CTF program
How do I submit a report?
AML/CTF compliance reports must be submitted electronically via AUSTRAC Online unless you do not have the technology to do so.
What if I report non-compliance in my AML/CTF compliance report?
AUSTRAC has said that it encourages candid and prompt reporting of compliance problems and has undertaken to first negotiate a cooperative remedial arrangement before contemplating enforcement action, except in unusual cases where the non-compliance involved is particularly serious and/or deliberate.
What will happen if I don’t submit an AML/CTF compliance report?
Civil penalties may apply if an AML/CTF compliance report is not provided by the due date, in the approved form and containing all the relevant information. Criminal penalties may apply for the supply of false or misleading information or documents.
Who can help me preparing my report?
AUSTRAC provides guidance to preparing the report and a sample report on its website at www.austrac.gov.au.
Expert assistance can be sought from your consultant at Certainty Compliance.
Where can I go for an external review of my AML/CTF compliance program?
Certainty Compliance can provide an independent external review of your AML/CTF program and can offer advice on revising your program to ensure compliance with the AML/CTF Act, the regulations and the AML/CTF Rules.
How does this apply to you?
If you are a reporting entity who provided designated services under the AML/CTF Rules for at least part of 2008, you must submit a compliance report with AUSTRAC by 31 March 2009.
For further information:
Certainty Compliance can help keep you up to date with all the AML/CTF laws, policies and procedures as they apply to you. Please contact a Consultant on (02) 9238 8091 or enquiries@certaintycompliance.com.au