Businesses who are Reporting Entities under the AML/CTF Act must do a variety of things to ensure they meeting all the elements required by AUSTRAC and the law.
Under the AML/CTF Act, most Reporting Entities have the following obligations:
- Enrol your business with AUSTRAC as a Reporting Entity and complete the business profile form;
- Submit an annual Compliance Report to AUSTRAC;
- Adopt and maintain a written AML/CTF Program that includes procedures to detect, deter, manage and mitigate money laundering and the financing of terrorism. The Program must include the following:
- Procedures to identify, mitigate and manage the risks that the provision of a designated service may involve; and
- Set out the applicable KYC processes;
- Submit International Funds Transfer Reports (IFTIs), Threshold Transaction Reports (TTRs), Suspicious Matter Reports (SMRs) and other required reports to AUSTRAC within specified timeframes;
- Develop procedures to screen employees before they are employed and/or when they are promoted (employee due diligence program);
- Appoint an AML/CTF Compliance Officer;
- Train your staff and representatives on an ongoing basis in AML/CTF risk awareness; and
- Store all relevant records.
- Develop and maintain an Ongoing Customer Due Diligence (OCDD) processes, which include:
- The collection and verification of further ‘Know Your Customer’ (KYC) information including details of beneficiaries in specified situations;
- A transaction monitoring program; and
- An enhanced customer due diligence (CDD) program.
- Report all suspicious transactions (Suspicious Matter Reports (SMRs)), International Funds Transfer Instructions (IFTIs) and threshold transactions (Threshold Transaction Reports (TTRs)) to AUSTRAC;
- Develop a system to monitor compliance with your AML/CTF Program including regular external audits.
Sophie Grace is able to provide ongoing compliance support to Reporting Entities in order to ensure your AML/CTF obligations are met. If you would like further information of assistance, please contact Sophie Grace directly.