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Double-checking your AML/CTF Program Reporting Obligations

Posted on August 10th, 2015 by Sophie Gerber in AFSL Compliance

AUSTRAC has released additional guidance about what needs to be included in your AML/CTF Program. In their latest e-news circular they note that a simple omission of reporting obligations from Part A of an entity’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Policy translates to non-compliance.

Reporting obligations

The reporting obligations which are to be included in Part A of the policy extend beyond reporting suspicious matters or threshold transactions and include the obligation to advise AUSTRAC of changes to your enrolment and/or registration details.

AUSTRAC reports that recent assessments of AML/CTF Policies has revealed that a number of reporting entities have neglected to include the obligation to maintain enrolment information and/or registration details in Part A of their policies. This omission causes the policy to be non-compliant with the AML/CTF Rules.

Reporting entities should review their AML/CTF Policy to ensure that this obligation is clearly included in Part A of their policy. It is also a good idea to periodically review your enrolment or registration details with AUSTRAC to ensure they are up to date. We suggest diarising this on a quarterly basis for your AML/CTF compliance officer to complete.

What should be included in Part A?

If you provide a designated service under section 6 of the AML/CTF Act 2006 or you provide remittance services, then you are a reporting entity and must be enrolled with AUSTRAC. Providers of remittance services are also required to apply for registration with AUSTRAC.

All reporting entities must maintain an AML/CTF Policy, which is divided into two Parts. Part A must include certain obligations as detailed under the AML/CTF Rules 2007. These obligations include:

  • Conducting a money laundering and terrorism financing risk assessment
  • Approval and oversight of the AML/CTF policy by boards and senior management
  • Appointing an AML/CTF compliance officer
  • Conducting regular independent reviews of Part A of the AML/CTF Policy
  • Maintaining an employee due diligence program
  • Implementing an AML/CTF risk awareness training program for employees
  • Appropriate procedures for applying AUSTRAC feedback
  • Reporting obligations
  • Procedures for ongoing customer due diligence

How do I update my enrolment or registration details

Enrolment details can be updated easily through AUSTRAC Online.

Registered remitters can update their registration details electronically through AUSTRAC Online or by completing the AUSTRAC Business Profile form.

All details can also be updated by contacting the AUSTRAC Contact Centre.

Further Information

Sophie Grace Pty Ltd can assist you to update your AML/CTF Policy or conduct a full external compliance review relating to your AML/CTF obligations. Our experience with a variety of clients and AUSTRAC reviews have helped us to develop an in-depth understanding of what AUSTRAC is looking for when it conducts a compliance review of your AML/CTF Program and its implementation across your business. Alternatively, we can provide an AML/CTF Policy tailored to your business needs to ensure you comply with the obligations under the AML/CTF Act and Rules. Please contact us for further information.

You can sign up to receive AUSTRAC’s e-news circulars at the link below.

http://www.austrac.gov.au/publications/information-updates/austrac-e-news

Alicia Pevely

Alicia works with Sophie Grace Pty Ltd with a particular focus on compliance and legal services. She assists clients with AFSL and ACL applications, variations and also assists in the implementation of compliance reviews. She provides ongoing compliance support as well as assisting in the preparation of legal advice, commercial agreements and disclosure documents.