This is the third part of a blog series about the ways to ensure compliance with AML/CTF requirements. Read the first and second blogs here.
4. Reporting obligations:
Companies are required to report suspicious financial transactions to AUSTRAC to enable it to carry out its regulatory functions.
The reports include:
International funds transfer instruction (IFTI) reports – to be submitted when a reporting entity sends or receives an instruction to or from a foreign country, to transfer money or property, to that entity;
Suspicious matter reports (SMRs) – to be submitted if, at any time while dealing with a customer, the reporting entity forms a reasonable suspicion that the matter may be related to an offence, tax evasion, or the proceeds of crime;
Threshold transaction reports (TTRs) – to be submitted when a reporting entity provides a service covered by the Act to a customer involving the transfer of currency (coin or paper money) or e-currency of AUD10,000 or more (or the foreign equivalent); and
AML/CTF Compliance Reports – to be submitted annually to AUSTRAC, which summarise the company's AML/CTF activities for the previous year.
Companies must make sure that their AML/CTF program includes appropriate systems and controls to ensure their compliance with these reporting obligations. Appropriate systems can include tailored training for employees, and oversight by the company's compliance committee.
5. Training:
Make sure all of your employees who are involved in AML-related duties (such as identifying customers, monitoring transactions, or processing funds transfer instructions) receive regular risk awareness training in relation to the company's obligations under the Act and the Rules. Further, the content of the training should be tailored to reflect the unique money laundering and terror financing risks faced by your company.
Ideally, the training should be followed up with a written test for participants so that the AML/CTF compliance officer can assess the effectiveness of the training session and the knowledge levels of the employees.
Often, companies assume that banks and other major financial institutions will take responsibility for identifying the proceeds of crime or thwarting potential money laundering schemes like the one currently the subject of legal proceedings in the Gold Coast. However, AUSTRAC takes the view that compliance with AML/CTF laws is the responsibility of each organisation which comes within the ambit of the regime, and companies need to ensure that their compliance is comprehensive and effective. Annual independent reviews can be a fundamental part of demonstrating compliance.
At Holley Nethercote, two of our lawyers have been authorised by AUSTRAC as external auditors. We can provide your company with an easy to understand and practical report of our independent review of your compliance with your AML/CTF obligations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
