Off and running: AML/CTF law reform kits now ready

IN a world first, the Australian Government’s financial intelligence unit AUSTRAC has released anti-money laundering program starter kits designed to help small businesses navigate newly regulated areas.

The kits are designed to meet the compliance obligations of business and manage ML/TF risks, while also reducing the time and cost of compliance. 

From July 1, businesses providing certain designated services commonly provided by lawyers, accountants, real estate agents, conveyancers and jewellers will have obligations under the AML/CTF Act. 

The kits set out step-by-step actions these businesses can take to build their own anti-money laundering program and include practical tools to help businesses comply with the Act. 

AUSTRAC CEO Brendan Thomas said the release of the kits marked a key point in the implementation of the anti-money laundering reforms. 

“AUSTRAC’s program starter kits mark the first time that an anti-money laundering regulator anywhere in the world has provided this level of practical support to business,” he said. 

“We have developed these kits in close collaboration with industry peak bodies and small businesses across the newly regulated sectors.  

“The kits aim to reduce the time, cost and effort for typical small businesses to develop an anti-money laundering program and will help ensure businesses new to anti-money laundering regulation meet their obligations without excessive regulatory burden.”

He said programs built from the kit can scale to the size of your business and the money laundering risks posed by the customers you deal with.  

“We know that most of your customers are individuals who pose a low to medium risk and compliance for these customers generally boils down to just three forms. 

“Organised crime costs the Australian economy billions of dollars and does immeasurable harm to the community each and every year.” 

The changes to the anti-money laundering regime will enable AUSTRAC and newly regulated businesses to work together to shut criminals out of the financial system and disrupt their illegal enterprises, Thomas said. 

“Risk may seem like an abstract concept but our kits tell you exactly what it means.

“If your customer is buying real estate with large amounts of physical currency, is engaging in unusual behaviour that can’t be explained with a legitimate reason or is hiding behind complex legal structures, the kit gives you the tools you need to deal with these situations. 

“The kits give you the freedom to choose the customers and the risk you want to take on while providing you with the tools you need to appropriately mitigate and manage that risk.  

“They represent an ongoing partnership with industry to lower regulatory impost and fight money laundering and will be updated as obligations, risks and industry practices change.” 

To access the starter kits, log on to www.austrac.gov.au