Anti-Money Laundering and Counter‐Terrorism Financing Act
The Anti-Money Laundering and Counter Terrorism Financing Act (the Act) requires each designated service provider (reporting entity) to put in place a compliance program (the AML/CTF program) to identify, mitigate and manage the risk of its company, products or services facilitating money laundering or terrorism financing.
Duty to Report
The Act puts the duty to report on the Financial Institution. Whilst it is the staff who comprise the actual links with the customer and what is reported, the responsibility to ensure that there is prompt and accurate reporting rests with the Company.
It is the responsibility of Management to ensure staff have sufficient knowledge and training to be alerted to any possible transactions. It is an offence under the Act to refuse or fail to report a suspect transaction as indicated above.
If at any time a transaction occurs that is considered to be suspect or unusual, this must be immediately reported, no matter how seemingly insignificant.This may be:
- A large but unusual payment on an account,
- When collecting from an overdue account, finding that the customer details are not as documented.
- Payout of a large loan in the first month after the cheque has been cashed.
Management will complete the appropriate report to AUSTRAC.
The information gathered by the Agency will be used by the Australian Taxation Office, Australian Customs Office, National Crime Authority and the Federal and State Police to detect financial and other criminal activity. If there is ever any indecision about whether to report a transaction, Management should be contacted in order to discuss the matter so that the correct decision can be made.
Non Compliance with Anti Money Laundering (AML)
Non-compliance with the AML/CTF Act may result in action against both the corporation and individual employees, particularly management. The penalties are significant.