AML/CTF Reviews

The Australian government has made it mandatory for all reporting entities to have an AML/CTF program that deters money laundering and terrorism financing. It must be written and comply with the latest requirements under:

  1. Domestic standards set out under Part 7 of the AML/CTF Act (2006);
  2. International standards and recommendations set out by the Financial Action Task Force.

Section 5 of the Act defines a reporting entity as:

“A financial institution, or other person, who provides designated services”.

A designated service includes financial services provided by an ADI, a bank, a building society, a credit union, lenders and an assignee of a lender, a financial lease, a trustee, or a person specified in the AML/CTF Rules.

The Program involves a two step component. The first (known as Part A) is the obligation on a reporting entity to have procedures that identify and prevent the risk of money laundering and terrorism financing. This must be monitored and regularly reviewed and updated. The second (known as Part B) is the obligation to have customer due diligence, specifically to verify the identity and information provided by a customer.

There are three types of Programs for reporting entities to choose from. These are the standard, joint and special Program. Each Program is suitable for a different type of reporting entity (depending on its nature, size, complexity, and risk of ML/TF) and has different review requirements. This means that not every Program will need to satisfy both the Part A and Part B components mentioned above.

Bransgroves Lawyers specialise in setting up and conducting formal reviews of AML/CTF programs. The pricing of our annual reviews is extremely competitive and begins at $1,200 plus GST.

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