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 is required 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 a person who 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 casinos and other gambling service providers.
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 doing this online will benefit from a tailored, more streamlined compliance report.
Entities who wish to complete a paper-based report should contact the AUSTRAC Help Desk on 1300 021 037.
AML/CTF compliance report 2007
The AML/CTF compliance report for 2007 is in the approved form. Please refer to the quicklinks on this page. AUSTRAC would like to thank those who provided feedback and input and contributed to the development of the report. This report covers AML/CTF Act provisions that commenced during the reporting period (see below). Future AML/CTF compliance reports will cover other provisions as they commence (during the related reporting periods).
The reporting period is 13 December 2006 to 31 December 2007. Reporting entities had from 1 January 2008 to 31 March 2008 to submit these reports to AUSTRAC. Please refer to AUSTRAC's media releases dated 25 October 2007, 19 November 2007 and 5 March 2008 for further information, as well as the 'Compliance reports brochure' available via the quicklinks on this page.
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 (13 December 2006 to 31 December 2007) are not required to lodge an AML/CTF compliance report.
For example, the AML/CTF regulations regarding managed investment schemes came into effect on 31 January 2008 (outside the reporting period) - therefore where the only designated service provided by a reporting entity is the issuing or selling of interests in a managed investment scheme, that reporting entity is not required to submit an AML/CTF compliance report with respect to the first reporting period.
Will AUSTRAC commence civil penalty proceedings against reporting entities who have not submitted an AML/CTF compliance report?
If an entity has not submitted an AML/CTF compliance report, then they must submit one immediately.
AUSTRAC has a range of enforcement powers available. Before AUSTRAC would take the step of using civil penalty provisions, it would use a graduated approach and consider the availability of other processes first. Legal proceedings are one of many tools available. AUSTRAC's goal is to ensure compliance and assist reporting entities with compliance.
However, the AML/CTF Act does state that where a breach occurs, AUSTRAC can apply to the Federal Court for a civil penalty order and if the court is satisfied that a person (individual, trust, partnership, company, corporate sole or body politic) has contravened a civil penalty provision, then it may order the person to pay a pecuniary penalty to the Commonwealth.
How does the 15-month period in which AUSTRAC will not seek civil penalties apply?
AUSTRAC considers that 'reasonable steps' in relation to AML/CTF compliance report obligations involve submission of the AML/CTF compliance report by 31 March 2008. A report must be provided now, even if the entity has missed the 31 March 2008 deadline, in order to avoid civil penalties.
The AML/CTF compliance report response will, however, assist AUSTRAC to work with reporting entities during the 15-month period to ensure they are taking reasonable steps for compliance with the specific requirements of the AML/CTF Act by the required dates of the staggered implementation period.
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.
I do not believe I have obligations under the AML/CTF Act, but I have received a letter from AUSTRAC. What should I do?
If you have received a letter from AUSTRAC titled 'FAILURE TO COMPLY WITH LEGAL OBLIGATIONS' but do not believe you are a reporting entity or have compliance reporting obligations, you can advise AUSTRAC by completing the 'COMPLIANCE REPORT RESPONSE FORM' that was attached to the letter, or click here to complete the form online. AUSTRAC will not send you any more letters if you complete this form.
