This is the third part of a blog series about the ways to ensure
compliance with AML/CTF requirements. Read the
second blogs here.
4. Reporting obligations:
Companies are required to report suspicious financial
transactions to AUSTRAC to enable it to carry out its regulatory
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
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
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
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
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.
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