Money
Issue No. 33 - February/March 2007
Anti-Money laundering and counter terrorism financing
What does it actually mean for your business?
by Dr Elizabeth Short
The Australian Federal Police estimates that identity crimes, such as money laundering, cost between $1 billion and $4 billion annually, and as much as $2 trillion around the world.
Money launderers traditionally use banks and casinos to launder the proceeds of crime. They are now becoming more creative in their methods and targeting other businesses that have not been subject to anti-money laundering regulations, and have not had strong money laundering protection processes in place.
The Anti-money Laundering and Counter-terrorism Financing (AML/CTF) Act 2006 received Royal Assent on 12 December 2006 after a long process to bring Australia’s AML/CTF regime in line with the rest of the world.
The new Act will affect a broad range of organisations including:
•the financial sector - banks, building societies, credit unions, leasing and hire purchase companies, issuers of travellers’ cheques, foreign exchange dealers, asset management companies, remittance dealers, financial planners who arrange for the issue of products, life insurers, superannuation fund managers, custodial service companies, cash couriers, and securities dealers
•the gambling sector - casinos, internet and electronic gaming service providers, bookmakers
•service providers such as lawyers and accountants who offer financial services, to name a few
It is anticipated that a second tranche of AML/CTF legislation will be introduced into Parliament in the next 12 to 15 months, extending obligations to precious metal dealers, lawyers & accountants (non-financial services), and real estate agents.
The obligations under the Act are to be phased in over a two-year period, but some obligations require immediate implementation, having come into effect on 13 December 2006. Immediate obligations are:
•Obligations relating to capturing and recording certain information about electronic fund transfers
•Record-keeping/retention re...
