The Australian Government and Australian Prudential Regulation Authority (APRA) have been enacting new rules to reduce the barriers for new entrants into the banking market by addressing significant obstacles that currently exist, making it easier for “challenger banks” to provide greater consumer choice and therefore more competition for the incumbents.
With this significant opportunity for new banking entrants to come in and take market share from traditional banks there is still significant challenge for new entrants to meet a wide variety of detailed and complex rules and regulations.
Challenger banks offer designated services to their clients and are regulated by AUSTRAC and must comply with the following:
- Identify, manage and mitigate money laundering and terrorism financing risk;
- Adopt and maintain an AML Program;
- Implement customer identification and due diligence policies and procedures;
- Suspicious matter reporting;
- Threshold transaction reporting; and
- Record-keeping requirements
After a product demonstration, Xinja registered for a standard AML Accelerate license and were able to complete the ML/TF risk assessment and create their AML Program themselves using our easy- to-use interface.
By assessing environmental, customer, business, product, channel and geographic risks, Xinja were well positioned not only to understand the potential money laundering risks that they might typically face, but were guided to design a program of control which was proportionate and appropriate to the risks that were identified during the assessment.
Within a few hours, Xinja were able to complete a money laundering and terrorism financing risk assessment for their business, helping them to identify, assess, mitigate and manage these risks.
After the ML/TF risk assessment was completed, Xinja were then able to utilise the AML Program as the starting point to establish their own AML Program, by reviewing, editing and further tailoring the out-of-the-box AML Program Manual to suit their specific requirements, saving them considerable time and money.
“AML Accelerate is a fantastic tool – for Xinja, who is striving to be Australia’s first truly independent 100% digital neobank, this helped establish our AML Program.”
Senior Advisor AML/CTF