AML/CTF Amendment Act 2024 – No Statutory Review

“Modernisation & Simplification” (cough).

Due to the lack of an exposure draft of the AML/CTF Amendment Bill, 2024, which would have allowed proper scrutiny, the proverbial dogs in the street know that the AML/CTF Amendment Act 2024 has many flaws. Nothwithstanding what the Government says, the Act as passed will need amendment in the future to fix the issues.

A sensible recommendation arising from the additional recommendations by Senator Scarr was that “the Bill be amended to provide for an independent statutory review of the legislation in 2028.”

Unfortunately, the Government said no. It has decided in its wisdom to outsource the review to FAFT during its upcoming Mutual Evaluation.

“The Government does not support this recommendation. Australia’s Mutual Evaluation in 2026-27 will include independent consideration of the effectiveness of the legislation as at the end of 2026. There will also be interim reporting to the FATF in 2030.”

As the Act has been designed to allow Australia to get a pass from FATF Mutual Evaluation, I am sure that FAFT will say the legislation is effective in the context that it meets the FATF Recommendations. And in reply, whichever side of politics is in power in 2027 will trumpet that Australia has not been greylisted and what a good global citizen the country is.

However, FAFT’s role will not be to point out the flaws, etc., in the legislation as it is being implemented by reporting entities. The need for legislative amendment will still be a live issue for reporting entities.