This note summarises anti-money laundering regulation changes announced in the last month.
Phase 1 changes industry consultation
The government is consulting with industry on proposals to implement the first phase of legislative proposals arising from recommendations from the report of the statutory review of the AML/CTF regime.
The Phase 1 industry consultation paper sets out reform proposals that have been identified as priority projects for 2017.
The paper explores reform proposals that relate to:
- expanding the objects of the AML/CTF Act;
- developing principles to guide the administration of the AML/CTF Act;
- expanding the powers and functions of the AUSTRAC CEO across a number of areas;
- expanding the infringement notice provisions to include a wider range of minor regulatory and compliance offences;
- extending the class of agencies that have the power to issue infringement notices and apply for civil penalties;
- introducing customer due diligence reforms, including changes to the reliance provisions;
- deregulating the cash-in-transit sector;
- deregulating insurance intermediaries and general insurance providers (except motor vehicle dealers);
- revising the framework for designated business groups;
- addressing a number of definitional issues;
- clarifying the correspondent banking obligations, and
- overhauling the AML/CTF Act’s secrecy and access arrangements for AUSTRAC information.
Regulation of digital currencies
A consultation paper has been released discussing recommendations that the AML/CTF Act should be amended to :
- ensure that digital currency wallets are comprehensively captured by AML/CTF regulation;
- expand the definition of e-currency to include convertible digital currencies not backed by a physical ‘thing’;
- regulate activities relating to convertible digital currency, particularly activities undertaken by digital currency exchange providers.
Options for regulating lawyers, conveyancers, accountants, high-value dealers, real estate agents and trust and company service providers
The following sector-specific consultation papers have been released:
Accountants model for regulation
High value dealers model for regulation
Legal practitioners model for regulation
Real estate model for regulation
Trust company service providers model for regulation
Remittance providers
AUSTRAC has published draft amendments to Chapter 59 of the AML/CTF Rules for consultation. The draft amendments include:
- clarification of the range of matters which may be considered in deciding whether to suspend the registration of a remittance service provider;
- allowing the AUSTRAC CEO to suspend a remitter’s registration without prior notice
Annual AML/CTF Compliance Report
Lodgement by reporting entities must be completed by 31 March 2017.
Terrorism financing information for non-profit organisations
The Attorney General’s Department has has issued Safeguarding your organisation against terrorism financing: A guidance for non-profit organisations.
