Anti Money Laundering and Counter Terrorism Financing (AML & CTF) Services
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (“the AML/CTF Act”) regulates those businesses which provide a Designated Service, as defined in the legislation. There are three different sectors covered - financial services, bullion and gambling services. Some examples of businesses which are captured by the legislation include:
Banks and building societies.
Entities who collect and/or deliver physical currency.
Remittance arrangers and providers.
The AML/CTF Act imposes a number of obligations on those businesses that provide such Designated Services, including:
Customer due diligence.
Establishing and maintaining an AML/CTF Program.
An AML/CTF Program is an all-encompassing document which is required to demonstrate how an entity will identify, mitigate and manage the risk of money laundering and terrorism financing occurring in the services that it provides to its clients, as well as setting out applicable customer identification and customer due diligence procedures. The AML/CTF Act obligates all Reporting Entities (that is, those entities who provide a Designated Service) to establish an AML/CTF Program which is ratified by its governing Board of Directors.
All Reporting Entities need to be enrolled with AUSTRAC and there are additional requirements for those entities who provide remittance services. In particular, these businesses need to apply for registration on AUSTRAC’s Remittance Sector Register.
There are three different types of remitters:
Independent Remittance Dealer - These are entities that provide remittance services to customers using their own systems and processes, independent of a remittance network.
Remittance Network Providers - These entities operate a network of persons, (“Affiliates”), who provide remittance services to customers of the network, and provide a shared or common platform or operating system used by their affiliates within the network to provide remittance services.
Affiliate of a Remittance Network Provider - These are independent businesses in their own right which are not owned by the remittance network provider. The remittance network provider enters into a contract or agreement with each of its affiliates for the provision of remittance services but does not exercise control over other business activities undertaken by those affiliates.
Ariel & Associates is able to offer the following AML/CTF services:
1. Drafting an AML/CTF Program.
2. Undertaking an Independent Review, which is designed to assess:
- The effectiveness of the Part A Program having regard to the Money-Laundering / Terrorism Financing (“ML/TF”) Risk of the Reporting Entity.
- Whether the Part A Program complies with the AML/CTF Rules.
- Whether the Part A Program has been effectively implemented.
- Whether the Reporting Entity has complied with its Part A Program.
3. Providing professional advice in order to comply with the provisions of the legislation and associated AML/CTF Rules.
4. Providing training, encompassing a Reporting Entity’s ML/TF Risk awareness training program.
Ariel & Associates can provide you with assistance in establishing your AML/CTF business, liaising with AUSTRAC, as well as providing you with ongoing compliance assistance to ensure you are not acting contrary to the AML/CTF legislation.