New Anti-Money Laundering laws

AML/CTF programs have two parts. One is to identify, lessen and manage the risk a business may reasonably face in providing a designated service that might involve or facilitate money laundering and terrorism financing. The second is to set out appropriate systems and controls to collect information and verify that a customer is who they say they are.

In addition to the new obligations, businesses are also required to complete a compliance report to show AUSTRAC that the business has identified and reduced their assessed risk and has given adequate resources to this task. The first report covers the reporting period from December 13, 2006 to December 31, 2007 and must be submitted to AUSTRAC by March 31, 2008. The format for the report is available on AUSTRAC’s website at www.austrac.gov.au

To ensure their understanding and subsequent compliance with these new obligations, businesses in the relevant sectors who provide designated services are advised to visit AUSTRAC’s website.

For further information and assistance contact the AUSTRAC help desk on 1300 021 037 or visit This email address is being protected from spam bots, you need Javascript enabled to view it

* Neil Jensen is chief executive officer at AUSTRAC

MONEY LAUNDERING FACTS

• * Money laundering is the third largest ‘industry’ in the world.

• * Funds involved in money laundering equate to $4-5 billion within Australia every year.

• * The amount of money laundered annually amounts to between two to five percent of the world’s GDP, or between US$800 billion to US$2 trillion.

• * Money laundering risks will continue to increase with commercial and technological development.

• * In December 2007, Australian business will be subject to stringent new ‘phase two’ Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF Act). Breaches of the AML/CTF Act may result in criminal or civil penalties including imprisonment for up to 10 years and fines of up to $11 million for a corporation and up to $2.2 million for an individual.

• * This will impact 72 designated services as defined under the AML/CTF Act including financial services, bullion dealers, gaming facilities and others.

• * Veda Advantage has developed unique technology to help businesses satisfy their Know Your Customer (KYC) obligations under the AML/CTF legislation.

 *Source: Veda Advantage (figures provided come from AUSTRAC, International Monetary Fund and the Australian Government Attorney General’s Department).