Anti-Money Laundering

Few areas of law will have such a significant impact on the financial services sector as the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF) Act).

The AML/CTF Act received Royal Assent on 12 December 2006, and significant provisions have been progressively introduced throughout 2007, with further provisions to be introduced 12 December 2008. Under these provisions financial institutions and financial service providers, bullion dealers and those in the gambling sector will be subject to obligations under the AML/CFT Act, including the need to identify customers before providing a service, and implement an AML/CTF Program.

There will be an assisted compliance period for 15 months from the commencement of each stage of the AML/CFT Act, provided that the reporting entity has taken reasonable steps towards compliance.

The AML/CFT Act is the first stage of reforms intended to ensure Australian compliance with accepted international standards, and reflects a risk-based approach to the anti-money laundering and counter-terrorism financing measures.

Impact

Those affected by the legislation will have a range of obligations including:

• undertaking a money laundering and terrorism financing risk assessment
• developing and implementing formal and comprehensive AML/CTF compliance programs
• developing and implementing systems to identify customers and third party service providers to monitor for and report suspicious transactions and to collect and retain records
• developing standard customer and third party outsourcing documentation which complies with the AML/CTF and other legislation
• appointing an AML/CTF management level compliance officer.

Industry specific analysis

The AML/CTF Act lists 74 activities that will be regarded as "designated services" and therefore covered by the legislation. Our team has prepared a number of Legal Updates addressing the impact of changes made in the AML/CTF Act generally and also in relation to the specific industry groups which will be most affected by the reforms.

Please click on the links below for our general summary and industry specific analysis: 

• General summary
• Superannuation
• Insurance 
• Gambling Services 
• Banking & Financial Institutions 
• Accounting & Legal Professions 
• Trust and Custodial Services 
• Managed Funds 

• AML update: AUSTRAC’s AML/CTF Act reporting implementation policy

  On 19 September 2008, AUSTRAC released a reporting implementation policy to assist reporting entities with new reporting obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). Reporting entities will need to report suspicious matters and, if applicable, threshold transactions and international funds transfer instructions to AUSTRAC, commencing from 12 December 2008.

  22 Sep 08 Alison Deitz

• Know your customer obligations 'tricky' for banks

  Deacons resident AML expert Alison Deitz was in good company at yesterday's annual Banking Technology Summit (Banktech 08), Dockside, Sydney.

  4 Sep 08 Kate Alexander, Alison Deitz

• Deacons in the press: The tenacious taint of dirty business

  Reporting obligations under the Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) Act will soon change the legal landscape, reports Lawyers Weekly 27 June 2008.

  30 Jun 08 Alison Deitz , Kate Alexander

• Deacons in the press: Enforcing responsibility

  Australia is one of the first jurisdictions to implement risk-based anti-money laundering and counter-terrorism financing (AML/CTF) legislation reports Risk Management magazine, 11 April 2008.

  22 Apr 08 Alison Deitz , Mary-Anne Webb

• Deacons in the press: Labour weaves its web

  Alison Deitz, Deacons partner and AML expert, is quoted in the April 2008 edition of Anti-Money Laundering magazine, of the Australian Financial Markets Association, on the privacy concerns under the anti money laundering legislation of AUSTRAC.

  11 Apr 08 Alison Deitz , Mary-Anne Webb

• Deacons in the press: AUSTRAC provides further clarity on the application of the AML/CTF regime for managed investment schemes

  In an article published by LexisNexis Butterworths' Financial Services Newsletter, March 2008, Deacons partners Alison Deitz and Fadi Khoury and lawyer Vanessa Pallone discuss the initial omission of MISs from the AML/CTF Act and legislative amendments to ensure their inclusion, which became effective on 31 January 2008.

  4 Apr 08 Alison Deitz, Fadi Khoury , Mary-Anne Webb

• Legal update: Federal Package for Heavy Vehicle Industry Safety

  Safety in the heavy vehicle transportation industry is clearly a major agenda item for both Federal and State Governments over the coming year.

  3 Mar 08 Michael Tooma , Alena Titterton

• AML update: AUSTRAC releases guidance on 'no action' letters for AML/CTF Act breaches

  AUSTRAC has released a draft Guidance Note providing a means for Reporting Entities to notify of a breach or an anticipate breach and to request that AUSTRAC take ‘no action’ with respect to that breach.

  29 Feb 08 Alison Deitz

• Legal update: Employers take note - Family responsibilities a focus of recent Victorian Equal Opportunity Act amendments

  The Equal Opportunity Act 1995 (the EO Act) has been amended to provide Victorian employees, contractors and prospective employees with further protection from discrimination in the workplace.

  27 Feb 08 Sarah Ralph , Andre Didenkowski

• Deacons in the press: Anonymity is lost in wash

  The Herald Sun, 11 February 2008, reported the Federal Government's Anti-Money Laundering and Counter-Terrorism Financing laws new rigorous client identity checks will cause extra red tape and expense with the final leg of the legislation to come into affect later this year being even tougher.

  11 Feb 08 Alison Deitz , Mary-Anne Webb