Who are Australia's AML/CFT Supervisor?
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Australian Transaction Reports and Analysis Centre (AUSTRAC)
AUSTRAC is the Australian Government organisation responsible for preventing, detecting, and responding to illegal financial system manipulation in order to safeguard the nation from severe and organised crime.
They seek to guarantee that banks and other authorised service providers adhere to Australia's anti-money laundering legislation as well as the Financial Action Task Force's criteria (FATF).
This organisation was established to promote policies and standards for fighting organised crime and corruption, as well as countering money laundering and terrorism funding.
How to comply with AUSTRAC?
As a designated service provider, you must guarantee that you have a robust anti-money laundering and counter-terrorist financing policy in place. This programme is split into two parts:
Part A
Must include processes and procedures to assist you in identifying, mitigating, and managing money laundering and terrorism financing threats.
Part B
Discusses the methods for establishing the identities of consumers and beneficial owners, including politically exposed individuals (PEPs).
There is no such thing as a one-size-fits-all anti-money laundering/counter-terrorist financing scheme. Each reporting entity is distinct, with its own set of money laundering and terrorism financing concerns. You must create a programme that is tailored to your specific requirements. This allows you to select how to carry out your obligations and to apply stronger and/or extra controls as needed.
All anti-money laundering and counter-terrorist financing programmes must be based on risk assessments. The risk assessment serves as the foundation for your whole anti-money laundering and counter-terrorist financing operation. Specifically, your programme must demonstrate the connections between recognised risks and the processes, rules, and controls that are in place to mitigate those risks.
What are the AML/CTF reporting obligations in Australia?
As a designated service, you are required to notify AUSTRAC of certain transactions and suspicious issues. The following are examples of continuing reporting obligations:
Threshold Transaction Reports (TTR)
Due within ten business days after sending or receiving a transfer instruction for an amount more than the threshold.
International Funds Transfer Instruction Reports (IFTIs)
Due within ten business days after the transfer instruction's receipt or submission.
Suspicious Matter Reports (SMRs)
If the transaction is linked to terrorist financing, you must file a report within 24 hours of the transaction being recognised as suspicious, or within three business days if the transaction is not tied to terrorism financing.
AUSTRAC compliance reports
Upon request, must be provided. These reports describe your compliance with the AML/CTF Act, applicable regulations, and recommendations.
Upon request, must be provided. These reports provided to AUSTRAC describe your compliance with the AML/CTF Act, applicable regulations, and recommendations.