May 20, 2024 Catherine Lygoe

Compliance Radar May 2024

A new report by the global anti-money laundering (AML) and counter-terrorist financing (CTF) task force has backed the need for the Australian Government to continue with proposed reforms to Australia’s AML/CTF regime.

Australia’s current AML/CTF regime can be unduly complex and poorly understood, leading to inadequate money-laundering and terrorism financing prevention practices and lower quality financial intelligence. 

LAB Group is pleased to see the Australian Government Attorney-General’s Department moving forward reforms in this space with the announcement of a second round of consultation papers in early May 2024. This followed a first round of stakeholder consultation held in mid-2023. 

The reforms aim to ensure the Attorney-General’s Department continues to effectively deter, detect and disrupt money laundering and terrorism financing, and meet international standards set by the Financial Action Task Force (FATF), the global financial crime  intergovernmental organisation.  

As part of this second round of consultation, the Attorney-General’s Department is seeking views from all stakeholders, including both current and proposed new reporting entities, to ensure that the reforms improve the current regime. The consultation period closes on 13 June 2024 and it represents a vital opportunity for LAB Group and its partners and customers to contribute to shaping these important reforms. 

The reform proposals on which the department is currently seeking feedback are available here. 

The main components of the proposed reforms include: 

  • Addressing vulnerabilities in sectors providing certain high-risk services by expanding Australia’s AML/CTF regime to ‘tranche two’ entities – including lawyers, accountants, trust and company service providers, real estate professionals and dealers in precious stones and metals. Services provided by these sectors are recognised globally as high risk for money laundering exploitation, but are not currently captured under the Australian AML/CTF regime. 
  • Modernising digital currency and payments technology-related regulation., 

Simplifying, clarifying and modernising the AML/CTF regime. LAB Group looks forward to continuing to engage proactively with the Australian Attorney-General’s Department to ensure Australia’s AML/CTF regime can be practically implemented. Businesses like LAB Group play a vital role in detecting and preventing the misuse of the financial services sector and its products by criminals seeking to launder money and fund terrorism. 


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