AML/CTF Amendment Act 2024

“Modernisation & Simplification” (cough).

The AGD has published the government response to the Senate Legal and Constitutional Affairs Legislation Committee report on the AML/CTF Amendment Bill 2024

Yes, a response to a bill that is already in force. Leaving that aside, the response makes interesting reading.

It’s mostly self-serving, as you’d expect, but there are a few comments worth noting.

In relation to AUSTRAC assiting new reporting entities it states “For example, AUSTRAC will develop ‘Starter Programs’, which will help small businesses establish AML/CTF programs, one of the major obligations under the AML/CTF regime. Small businesses would pick the Starter Program closest to them, and tweak to fit their circumstances. This will streamline regulatory costs and help reduce the cost burden on small businesses.”

Some thoughts on this:

1. On the assumption that AUSTRAC neither has the skills and experience to develop “Starter Programs”, who will? Will a consulancy or law firm be tasked to developed these Programs? Good, if risky work, if it can be landed.
2. How will said “Starter Programs” deal with all the new complexity built into the AML/CTF Amendment Act?
3. Will the Starter Programs have a ML/TF Risk Assessment? Will that ML/TF Risk Assessment deal with non-proliferation financing risk?
4. What will AUSTRAC’s regularly response be when a new (or current) reporting enitity has (I use the term loosely) a Starter Program? Does this give the reporting entity immunity as it is relying on its regular’s docuement? I very much doubt it but that will be the perception in the new industries.
5. What happens at the first Independent evaluation when an Independent Evaluator legitimately suggests that the Starter Progam does not meet the law? And that is before the issue of implementation.

An amusing statement from the government: “The Government has reduced regulatory burden by simplifying and modernising the AML/CTF regime. Tranche two entities will have substantially lower costs ($2.1 billion less) than if they were regulated under the current regime”.

https://www.aph.gov.au/DocumentStore.ashx?id=aac35e3a-b557-4914-80fb-4c579fe8b200