Small business fears of AML/CTF fees doused
AUSTRAC CEO Brendan Thomas says it is unlikely most conveyancers will be required to pay a levy on the back of AML/CTF law reforms.
ONE scary story going around about the looming Tranche 2 AML/CTF regime is that reporting entities will have to pay a levy to AUSTRAC, in addition to other costs of compliance.
That would be akin to acting as the financial regulator’s unpaid detective – and then being made to pay for doing the voluntary work.
But we’re assured that so far as conveyancers, lawyers and accountants are concerned, it’s a misunderstanding of AUSTRAC’s funding model.
There is in fact an industry contribution levy paid by large corporations, designed to offset AUSTRAC’s costs.
But its Chief Executive Brendan Thomas assured the Australian Conveyancer’s inaugural Settlement Day podcast that small-to-medium businesses can relax.
“We regulate about 19,000 businesses; about 200 of those businesses currently pay a levy,” he explained.
“At the moment, only businesses that earn more than $200 million pay a levy to AUSTRAC.”
That is, the kind of turnover conveyancers could wish for only in their wildest dreams.
Thomas says the levy is set by the federal government and subject to change.
“But I think it would be highly unlikely for small businesses to face any kind of money laundering levy.” he added.
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