What is an AML/CTF compliance report?
An AML/CTF compliance report provides AUSTRAC with information about reporting entities' compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), the regulations and the AML/CTF Rules. It is required under the AML/CTF Act in Part 3, Division 5, which came into effect on 12 June 2007.
Who needs to submit an AML/CTF compliance report?
'Reporting entities' are required to give AML/CTF compliance reports to the AUSTRAC Chief Executive Officer (CEO). A reporting entity is an individual, company or other entity that provides a 'designated service' as defined in the AML/CTF Act. Examples of reporting entities include banks and other financial institutions, remittance service providers, foreign exchange dealers, debit and stored value card providers, bullion dealers and gambling service providers.
Australian financial services (AFS) licence holders who only provide the designated service of making arrangements for a person to receive another designated service, do not have to submit an AML/CTF compliance report. They should, however, enrol with AUSTRAC Online to submit any other reports they may be required to lodge under the AML/CTF Act.
AML/CTF compliance report 2008
The AML/CTF compliance report for 2008 is now in the approved form. The following sample form is provided for viewing. Note: this is a sample only and must not be used for reporting to AUSTRAC.
Sample AML/CTF compliance report 2008
File size 393kb
The 2008 report covers Parts A and B of AML/CTF programs, ongoing customer due diligence and reporting obligations, correspondent banking relationships (if applicable) and electronic funds transfer instructions. There are slightly fewer questions overall than in the 2007 report and AUSTRAC has revised some questions to take into account concerns raised by reporting entities about the wording of some questions in the 2007 report.
AUSTRAC has produced an instruction guide to assist reporting entities with completing the 2008 report:
AML/CTF Compliance Report 2008 Instruction Guide
File size 167kb
How are reports submitted to AUSTRAC?
It is AUSTRAC policy that AML/CTF compliance reports be submitted electronically via AUSTRAC Online (unless a reporting entity does not have the technology to do so). Reporting entities benefit by being provided with a tailored, streamlined compliance report which is easy to complete and submit.
Entities who need to complete a paper report (for example, if they do not have a computer with internet access), should contact the AUSTRAC Help Desk on 1300 021 037 (a local call within Australia).
What are the reporting and lodgement periods?
The reporting period is 1 January 2008 to 31 December 2008. Responses provided by reporting entities in their reports should relate to their business activities during this period.
The lodgement period for reporting entities to submit these reports to AUSTRAC is 1 January 2009 to 31 March 2009.
AML/CTF compliance reports for entities affected by draft AML/CTF Rules
AUSTRAC is considering draft AML/CTF Rules which may have the effect of limiting or removing the application of the AML/CTF Act to certain entities in certain circumstances.
As draft AML/CTF Rules have no legal force, reporting entities are still subject to all relevant obligations under the AML/CTF Act, including the requirement to submit an AML/CTF compliance report to the AUSTRAC CEO under section 47. AUSTRAC will consider various factors, including a reporting entity's expectation of AML/CTF Rules being made which will exempt the entity from certain or all obligations under the AML/CTF Act, when exercising its regulatory responsibilities.
AML/CTF compliance reports for entities who did not provide a designated service during the reporting period
Entities who did not provide any designated services during the reporting period (1 January 2008 to 31 December 2008) are not required to lodge an AML/CTF compliance report.
Entities who offered designated services during any part of the reporting period must still complete an AML/CTF compliance report for the period they did offer those services.
What if I don't submit an AML/CTF compliance report?
Civil penalties may apply for failure to provide an AML/CTF compliance report by the due date. The compliance report needs to be in the approved form and contain all the relevant information. Criminal penalties may also apply if you supply false or misleading information or documents.
If I report non-compliance in my AML/CTF compliance report, what action will AUSTRAC take?
AUSTRAC encourages candid and prompt reporting of compliance problems, including by way of an AML/CTF compliance report. In return, AUSTRAC undertakes to first negotiate a cooperative remedial arrangement before contemplating enforcement action, except in unusual cases where the non-compliance involved is particularly serious and/or deliberate.
Further information
AUSTRAC has produced various educational tools and publications to assist reporting entities with their AML/CTF compliance reporting obligations. These include:
- AUSTRAC Regulatory Guide (chapter 5)
- e-learning course 'Introduction to AML/CTF'
- Compliance reports 2008 brochure.
The above can be accessed from the quicklinks on this page.
