Focus on effective AML/CTF programs

CA ANZ highlights that an effective AML/CTF program requires reporting entities to have systems and controls in place to prevent misuse of their services. These programs must manage and mitigate risk for each client, service and delivery method, appropriate for that entity allowing for a tiered approach. The existing powers of the AUSTRAC CEO are sufficient to ensure compliance. Under Part 13 of the AML/CTF Act, the CEO can appoint authorised officers to monitor entities, collect information and require external audits of AML/CTF programs. If a product or service presents an unacceptable risk, AUSTRAC can share intelligence with law enforcement or other regulatory bodies that have the authority to act.

Maintaining the regulator’s role

CA ANZ’s submission reinforces that AUSTRAC’s role is to provide intelligence and regulate compliance, not to decide which services can be offered or how they are delivered. If AUSTRAC identifies a product, service or delivery channel that may present an unacceptable risk or harm to Australia’s financial system, AUSTRAC can share this intelligence with the appropriate law enforcement agency or regulatory body.