Date posted: 24/03/2020

DIA Regulatory Findings Report on AMLCFT compliance released

Covering 12 months to 30 June 2019, the DIA conducted both desk-based reviews and onsite inspections in collating its findings on AML/CFT compliance.

In brief

  • DIA has released its Regulatory Findings Report on Anti-Money Laundering and Countering Financing of Terrorism Act 2009 compliance
  • Within the Report, DIA has provided examples of good practice which include risk assessments and complete written documents which were specific to the money laundering and financing terrorism risks that the business faced
  • As a starting point, the use of generic template content was considered to be an indicator that businesses might not be adequately meeting AML/CFT obligations

The Regulatory Findings Report (the Report) provides an insight into the Department of Internal Affairs' (DIA) findings around Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT) compliance for the 12 months ended 30 June 2019.

In preparing the Report, the DIA completed desk-based reviews and onsite inspections. This process resulted in remediation plans and other regulatory actions such as formal warnings and one enforceable undertaking.

Through undertaking this work, the DIA found that adequate compliance was itself driven by a strong business understanding of possible money laundering and terrorism financing risks and vulnerabilities (ie. the risk assessment).

“Overall, we found that businesses with a positive approach to compliance had a greater understanding of AML/CFT obligations..” 
Department of Internal Affairs

The report is intended to help reporting entities (ie. those that are subject to the legislative requirements) to understand expectations around what compliance looks like and what improvements to systems and processes might be needed as a result.

On the basis of the work undertaken, the DIA considers good practice to include some of the following:

  • Risk assessments that are specific to the money laundering and financing terrorism risks the business faced
  • Written documentation that is complete, kept up to date (and with version control), and covers all relevant obligations specific to the business and are not generic in nature (that is, the use of templates was generally a good indication that compliance was unlikely to be satisfactory).
  • Evidence that compliance officers' have an adequate understanding of their businesses' money laundering and financing terrorism risks, and that these officers have the required level of influence in the business to escalate issues and ensure governance level support for the AML/CFT program
  • Evidence that senior level management, compliance officers and any staff member with AML/CFT duties are sufficiently trained and vetted
  • Documentation indicating that customer due diligence (CDD) and enhanced CDD is undertaken in accordance with the legislative requirements

The DIA encourages and welcomes feedback, and is currently developing a webinar to share additional insights from the Report.

AML/CFT Homepage

Find out more

Anti-money laundering legislation

Find out more

Search related topics