Beyond the numbers with Grant Thornton: Listen now
This comes as a result of a Senate Inquiry in 2021, and ahead of the Australian AML/CTF regime’s evaluation against international standards in 2025 or 2026.
The Attorney-General’s Department has released the first of two consultation papers on modernising Australia’s AML/CTF regime. Submissions in response to the consultation paper, are due by 16 June 2023.
Feedback received during this consultation will be used to inform subsequent drafting of AML/CTF reforms over the course of the year. The second paper will be released for consultation later in 2023.
The 2016 Statutory Review found that the current AML/CTF regime is overly complex and hinders the ability of regulated entities, particular small businesses, to understand and ultimately comply with their AML/CTF obligations.
In line with the 2016 Statutory Review, the AGD is proposing to reform the AML/CTF Act by clarifying the obligations in the AML/CTF Act to reduce the burden on businesses and make proposed changes to the AML/CTF Rules that will help businesses understand the AML/CTF outcomes they are expected to achieve.
The proposals contained within the consultation, if introduced, will each of the 14,000 plus businesses currently covered by the AML/CTF Act to review and ultimately amend and enhance their AML/CTF Programs.
The consultation poses 22 questions relating to a wide range of topics and participation in the consultation is one of a limited set of opportunities for businesses to play a role in shaping the AML/CTF obligations they will subject to for years to come.
Our analysis of the AGD’s and insights into the implications of the proposals can be accessed below.
Lawyers, accountants, real estate agents and other professionals in the property industry who provide one or more designated services will be required to implement risk management programs, conduct client due diligence, and monitor client behaviour and transactions for suspicious activity.
Designated services include buying and selling real estate and land, the conveyancing of real estate and land, buying and selling businesses or legal entities, managing client funds, accounts, or assets, and operating and managing legal entities acting as a nominee director or a trustee.
Now is the time to start thinking about how Tranche 2 will impact your business, the Attorney General's Department has commenced a widespread consultation with industry and other stakeholders prior to implementing the reforms. The consultation phase will represent an important opportunity to provide your input, as well as shape the scope and nature of the obligations for your industry.
Understanding the potential AML/CTF compliance challenges will support your participation in the upcoming consultation phase, and ultimately mitigate the impact of being brought into the AML/CTF regime.
Based on the International Standards and equivalent activity in other countries, the following services offered by the real estate industry are likely to be included as designated services under the AML/CTF Act:
If your business offers or provides one or more of the above services, your business will be subject to AML/CTF obligations.
Aspects of the services offered by the real estate industry have been identified as being attractive to criminals wanting to launder the proceeds of crime and to finance terrorism. The Money Laundering and Terrorist Financing (ML/TF) risks associated with the real estate sector include:
Businesses within the real estate industry that will be captured by the AML/CTF Act must ensure they conduct a comprehensive ML/TF risk assessment to identify, assess, mitigate, and manage ML/TF risk exposures. This is a critical first step in complying with the AML/CTF Act and AML/CTF Rules.
Services offered by lawyers and conveyancers that may be included as designated services under the AML/CTF Act include:
If you offer or provide one or more of the above services, your business will be subject to AML/CTF obligations.
Aspects of the legal profession are identified as being attractive to criminals wanting to launder the proceeds of crime and to finance terrorism. The Money Laundering and Terrorist Financing (ML/TF) risks associated with the legal profession include:
Businesses within the legal profession that will be captured by the AML/CTF Act must ensure they conduct a comprehensive ML/TF risk assessment to identify, assess, mitigate, and manage ML/TF risk exposures. This is a critical first step in complying with the AML/CTF Act and AML/CTF Rules.
Based on the International Standards and equivalent activity in other countries, the following services offered by accountants and bookkeepers may be included as designated services under the AML/CTF Act.
If you offer or provide one or more of the above services, your business will be subject to AML/CTF obligations.
Aspects of the services offered by the accountancy profession are identified as being attractive to criminals wanting to launder the proceeds of crime and to finance terrorism. The Money Laundering and Terrorist Financing (ML/TF) risks associated with the accountancy profession include:
Businesses within the accountancy profession that will be captured by the AML/CTF Act must ensure they conduct a comprehensive ML/TF risk assessment to identify, assess, mitigate and manage ML/TF risk exposures. This is a critical first step in complying with the AML/CTF Act and AML/CTF Rules.
Our analysis of the AGD’s and insights into the implications of the proposals can be accessed below.
We have detailed knowledge and real-world experience of the likely Tranche 2 requirements, how they may impact each profession, and what can be done to mitigate their impact.
We have been at the forefront of the reform agenda proposed by the Federal Government, and directly supported many New Zealand legal practices, accountancy firms, and real estate business when they were brought into the AML/CTF regime in 2018.
Thank you for your submission. Keep an eye on your inbox - white papers are on their way to you shortly!
If you have any questions in the meantime please contact us at communications@au.gt.com
Our AML Reform white papers will provide you with an overview of the ADG's approach to simplifying and modernising Australia’s AML/CTF regime, ML/TF risks in the real estate sector and risks in the legal, accountancy, and trust company service provider professions.
Grant Thornton can assist you to review and mitigate your AML/CTF risk profile by:
We'll be in touch shortly.
In the meantime, if you have any questions, please don't hesitate to contact us via communications@au.gt.com.
We'll be in touch shortly.
In the meantime, if you have any questions, please don't hesitate to contact us via communications@au.gt.com.
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