AML/CTF Amendment Act. 2024 – Infringement Notices
More “modernisation & simplification” (cough).
Does the punishment fit the crime?
From 31st March, 2026 the new list of desingated infringement notices will be effective. The list at section 184 is long and can / will trip up even the most fastidious reporting entity or compliance team (aren’t they all?).
if a reporting entity falls foul of an infringement notice provision it will be an expensive mistake. Each breach of an INP is equal to 60 penalty units. As of 1 January, 2025 1 x penalty unit is $330 giving a INP a penalty unit value of $19,8000 (60 x $330). And as night follows day, the penalty unit value will probably be nearer $400 by next March.
For example, under section 26M the failure to notify AUSTRAC of an AML/CTF Compliance Officer outside the 14 day time limit will attract a fine of $19,800 per day from the 15th day.
There are many other examples including: failure to lodge an annual compliance report on time; failure to provide documents; and, surprisingly, issues relating to the new LPP forms.
Infringement notices are going to be very expensive speeding tickets. So, make sure you understand your AML compliance obligations including infringement notice provisions.
