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Am I a reporting entity? Do I need to complete a Compliance Report by 31 March 2019? We have the answers!

The Australian Transaction Reports and Analysis Centre (“AUSTRAC”) Compliance Report 2018 (“Report”) is now open for completion. This annual report is a self-assessment of a reporting entity’s compliance with its anti-money laundering and counter-terrorism financing obligations. 

Background

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (“AML/CTF Act”) imposes ongoing transaction reporting obligations and compliance reporting obligations on reporting entities.  The Report is a self-assessment of how a reporting entity has met its anti-money laundering and counter-terrorism financing obligations over the year.   

When is the Report due?

The Report must be completed and submitted to AUSTRAC by 31 March 2019. The Report is now available for completion and can be accessed through AUSTRAC Online.  

What information must be disclosed in the Report?

Since the last compliance report in 2017, AUSTRAC has refined and updated the questions set out in the Report.  AUSTRAC will use the information disclosed by reporting entities in the Report to measure the effectiveness of a reporting entity’s compliance with the AML/CTF Act, as well as increase AUSTRAC’s understanding of money laundering and counter-terrorism financing risks across different businesses and industries.  The questions in the Report relate to the business activities of a reporting entity between 1 January 2018 and 31 December 2018.

A reporting entity can expect to answer questions including:

  • whether it has more than five employees;
  • what types of customers it provides a service to;
  • how it provides designated services;
  • how it manages employee risk;
  • whether it outsources certain functions; and
  • how it manages its AML/CTF program.

Who must complete the Report?

All businesses that provide a designated service/s must complete the Compliance Report, unless they fall under one of the exceptions (below). Designated services under the AML/CTF Act fall within three categories: financial services, bullion and gambling services. 

Financial services  includes account/deposit taking services, fund management services, currency exchange services, digital currency exchange services, life insurance services, payroll services, and securities and derivatives markets/investment services.

This list is not exhaustive and if you are unsure whether you provide a designated service under the AML/CTF Act please contact Richard Beissel or a member of our financial services team.

Who does not need to complete the Report?

Designated service providers do not have to complete a Report if it is:

  • a small gaming venue licenced to operate no more than 15 electronic gaming machines;
  • an Australian Financial Services Licence holder who only makes arrangement for another person to receive a designated service covered by the AML/CTF Act; or
  • a remittance provider that only provides services as an affiliate on behalf of a remittance network provider.   

If a reporting entity does not fall within one of the above businesses, but believe it does not have to submit the Report, then it must complete a Compliance Report Response Form.  

Need help?

If you require assistance with completing the Report or have any questions regarding your obligations as a reporting entity, please contact Richard Beissel or a member of our financial services team.  

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