Austrac has released for comment draft Anti-Money Laundering and Counter-Terrorism Financing Rules regarding credit card operators which are not ADIs.

The Rules are in response to exposure draft legislation that would amend the Banking Regulations 1966 to open up credit card issuing and acquiring to non-ADIs. The reforms will allow non-ADIs to become credit card issuers and credit card acquirers in the Visa and MasterCard credit card schemes.

These AML/CTF Rules would ensure that following the proposed credit card reforms, a person who is a credit card issuer or acquirer and is not an ADI, bank, building society or credit union will be an Austrac reporting entity.

The credit card reforms are proposed to commence on 1 January 2015. These AML/CTF Rules will commence on the same day as the credit card reforms.