Anti-money laundering: Current state of play

  • AUSTRAC has released proposed amendments to the chapters of the Anti-Money Laundering and Counter-Terrorism Financing Rules for public consultation.
  • The introduction of Tranche 2 will create job opportunities for governance professionals who are interested in becoming AML officers.
  • This article outlines the current requirements of an AML program.

Australia introduced AML legislation in 2006 (referred to as Tranche 1) and recently approved Tranche 1.5 (open for public consultation until 11 March 2021). Tranche 1.5 makes it illegal to provide a designated service until the ‘know your customer’ (KYC) process is completed but makes it easier for reporting entities to outsource/ rely on KYC done by a third party. Australia and the US are two major countries whose current AML laws don’t capture designated non-financial businesses and professions (DNFBPs) (whose regulation is referred to as Tranche 2). Once Tranche 2 is approved it is expected to increase the number of reporting entities regulated by AUSTRAC from 15,000 to over 100,000. It should create job opportunities for governance professionals who are interested to become AML officers.

Let’s go through some of the current requirement in Part A and Part B of an AML program:

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