AML/CTF and other legislation amendment bill 2019 introduced to federal parliament

The AML/CTF and Other Legislation Amendment Bill was introduced into Federal Parliament on the 17th October 2019.

“The bill is the next phase of the government’s reforms to bolster our anti-money-laundering and counter-terrorism financing, or AML/CTF, regime, to prevent criminals from enjoying the profits of their illegal activities, and to stop funds falling into the hands of terrorists. This regime is centred on hardening the financial sector against these threats.” said by Darren Chester, the Minister for Veterans and Defence Personnel and Deputy Leader of the House, “The bill will also improve Australia’s compliance with the international standards for combating money laundering and terrorism financing set by the Financial Action Task Force.”

The specific amendments in the bill include:

• Customer due diligence

The bill broadens the circumstances in which approximately 14,000 regulated businesses may enter into an arrangement with another regulated entity to rely on checks already conducted.

• Correspondent banking obligations

The bill imposes more stringent obligations on Australian banks by requiring them to conduct appropriate due diligence on correspondent banking relationships to ensure its correspondent banks are not doing business with shell banks and have robust AML/CTF systems and controls.

• Cross-border reporting requirements

The bill expands the requirement of cross-border movements of physical currency on travellers, so that, bearer negotiable instruments, such as travellers cheques, must also be declared at the border where the combined amount is $10,000 or more. The bill also increases the penalties for failing to comply with cross-border declaration requirements to further deter bulk cash smuggling.

To access the full bill, please click here