The Albanese Government Seeks To Reform Australia’s AML/CTF System

Must Read

The Australian government is taking action to change and improve the anti-money laundering and counter-terrorism financing (AML/CTF) regime.

The previous government should have reformed the AML/CTF regime, resulting in significant regulatory gaps that made Australia an attractive destination for money laundering. Australia still has to adhere to 16 of the 40 Financial Action Task Force (FATF) Standards in place since 2015, including expanding the AML/CTF framework to include businesses in the tranche-two category.

The current administration brings this issue back to the spotlight due to the desire to eliminate money laundering used to fund serious crimes such as terrorism, child abuse, and the illicit drug trade. 

Aside from having a downward trend in the economy, Australia has the chance of being ‘grey-listed’ by the FATF if the country fails to comply with its standard. Australia is dedicated to upholding international standards for combating money laundering and countering terrorism funding as a founding member of the FATF. 

The consultation paper released by the Attorney-General’s Department has two parts. The 1st part proposes significant changes to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the Act) and the Anti-Money Laundering and Counter-Terrorism Financing Rules (the Rules) to make the regime simpler and modern.

Meanwhile, part two suggests imposing the simplified AML/CTF regime to professionals such as “​​lawyers, accountants, conveyancers, trust and company service providers, real estate agents and dealers in precious metals or precious stones (collectively, tranche-two entities).”

“No legitimate business wants to wittingly, or unwittingly, assist the laundering of money that aids the commissioning of serious crimes including terrorism, child abuse and the illicit drug trade,” mentioned the Attorney-General’s Department in its announcement.

The government wants to see a more resilient Australia. Yet, for this regime to become successful, it would require proper reporting of specific transactions to the government from businesses for use as financial intelligence in combatting money laundering and other financial crimes

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img