We provide review/audit & consulting services to support all other captured industries in complying with their AML/CTF obligations.
Gambling Agencies
The overall medium-high risk rating for the RITA sector reflects its size, ease of access and demographic spread coupled with its higher risk products and services. The gambling and betting sector is recognised as being vulnerable to a number of high-risk ML/TF activities and industry specific risk factors.
High-Value Dealers
Given the size, nature and diversity of this sector and its previous and continued unregulated nature, it is difficult to get an accurate picture of the nature and extent of ML/TF. However, based on domestic and international evidence, HVDs are highly vulnerable to ML/TF. Coupled with low overall ML/ TF awareness and lower levels of supervision and reporting obligations, the HVD sector presents a medium-high inherent risk of ML/TF.
Trust & Company Service Providers
Both domestic and international evidence and guidance highlight the significant ML/TF risks presented by the TCSP sector. The high-risk services/products of this sector combined with ease of access, wide geographic spread, high-risk customers and the ability to disguise and conceal beneficial ownership makes this an inherently high- risk sector.
We’re proud to assist small to enterprise-scale businesses across all sectors
FAQs
To better understand and fulfil your obligations under Tranche 2, you can refer to official guidance from AUSTRAC, engage in industry-specific training, and seek advice from legal or financial professionals with expertise in AML/CTF compliance.
One AML can also help you understand and meet your AML/CFT obligations. We provide robust, cost-effective, and seamless solutions. Get in touch with us today.
There are opportunities for your business to showcase its commitment to compliance and ethical practices. By diligently following the regulations, you can enhance your reputation as a trustworthy partner for your clients, reducing the risks associated with money laundering and terrorist financing activities.
Complying with Tranche 2 may involve an increased administrative workload, longer transaction times, and the need for additional resources, such as training and software. However, failure to comply with the new regulations could result in legal or reputational risks for your business.
As a reporting entity, your business will be required to implement risk management programmes to identify and mitigate potential money laundering and terrorist financing risks. This includes conducting customer due diligence (CDD) on clients, monitoring transactions and client behaviour for suspicious activities, and reporting any suspicious matters to AUSTRAC.
The first round of public consultation on proposed reforms to Australia’s AML/CTF regime closed in June 2023. A second round of consultation will be opened in September 2023, and it is likely to include draft legislation. It will likely include a 12 or 18-month transition period in its Tranche 2 Bill. This would allow Australia to have laws in place before the Financial Action Task Force (FATF)‘s fifth-round mutual evaluation visit, expected in 2026.
The AML/CTF regime is central to Australia's efforts to prevent criminals from profiting from their unlawful activity and to prevent funds from reaching terrorist organisations.
The Attorney-General has announced a public consultation regarding proposed anti-money laundering and counter-terrorism financing (AML/CTF) regime reforms in Australia. The objective of the proposed reforms is to ensure that the regime conforms to international standards. industry can enhance their understanding of their obligations and compliance.
Tranche 2 refers to the second phase of Australia’s anti-money laundering (AML) and counter-terrorism financing (CTF) laws. It extends the scope of regulated entities to include businesses such as lawyers, conveyancers, real estate agents, and accountants. This means affected professional service providers will now be considered ‘reporting entities and must comply with AML/CTF obligations to deter money laundering and terrorist financing.
AUSTRAC, Australia's AML/CTF regulator, oversees over 17,000 individuals, enterprises, and organisations. We ensure compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act of 2006 and the Financial Transaction Reports Act of 1988.
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) place responsibilities on Australian entities that provide any designated services listed under section 6 of the AML/CTF Act. These entities generally provide financial, gambling, bullion or digital currency exchange services to detect and deter money laundering and terrorism financing. The Act ensures that businesses take appropriate and efficient steps to ensure that their clients are not money laundering and terrorism financing while contributing to public confidence in the Australian financial system.
The AML/CTF Act requires Reporting Entities to have an independent review of their Risk Assessment, AML/CTF Programs and processes. This must be conducted by an appropriately qualified and independent person. If you need assistance with an independent AML/CTF Review please contact us.
A Risk Assessment is a Reporting Entity’s foundational document which assesses the risks and vulnerabilities of being exposed to money laundering or terrorist financing.
A Reporting Entity’s Programs must be based on the risks assessed in its Risk Assessment and must set out internal policies, procedures and controls which will manage and mitigate money laundering and terrorist financing. There are three types of AML/CTF Programs:
- Standard program – applies to individual reporting entities;
- Joint program – applies to reporting entities that are members of a “designated business group”; and
- Special program – applies only to holders of an Australian Financial Services License (AFSL) offering a particular kind of designated service.
AML/CTF Programs have two key parts:
- Part A, relating to the identification, management and reduction of the risk of ML/TF (not required for a special program); and
- Part B, relating to customer identification and verification procedures i.e KYC.
You must decide how often reviews are done. How you decide depends on:
• The size of your business or organisation.
• What kind of business or organisation you have.
• How complex your business or organisation is.
• Your level of money laundering/terrorism financing risk.
High-risk organisations should have independent reviews done at least every two to three years.
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) place responsibilities on Australian entities that provide any designated services listed under section 6 of the AML/CTF Act. These entities generally provide financial, gambling, bullion or digital currency exchange services to detect and deter money laundering and terrorism financing. The Act ensures that businesses take appropriate and efficient steps to ensure that their clients are not money laundering and terrorism financing while contributing to public confidence in the Australian financial system.
The AML/CTF Rules are subsidiary legislative instruments made under the AML/CTF Act. The AML/CTF Rules provide the detail for the broader obligations set out in the AML/CTF Act. Their official title is the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1).