Draft amendments to Chapter 11 of the AML/CTF Rules – last chance for feedback and a preview of the 2018 Compliance Report

The public consultation period for the draft amendments to Chapter 11 of the AML/CTF Rules closes on the 22 November 2018.

These amendments set the reporting and lodgement periods for the Compliance Report, and specify the classes of reporting entity that will be exempt from lodging a 2018 Compliance Report. The requirement to lodge an annual Compliance Report for the 2017 calendar year was suspended to allow consultation and review of the content and form design with reporting entities. The new Compliance Report was co-designed with industry. Registered remittance network providers are no longer considered exempt from the requirement but their affiliates will enjoy an extension of this reprieve, unless they provide a designated service in addition to items 31 or 32 in which case the obligation applies to their activities in full. Reporting entities who in 2018 ceased, and did not recommence, to provide a designated service will also be exempt from the new report.

A link to the full text of the amendments can be found here

The new Compliance report:

We know you’re excited. the new and improved report will apparently be available online from the 2 January next year (well we are presuming its next year because the AUSTRAC website actually says 2018 but we haven’t heard of anyone being able to see it yet…).

Lodgement will be required by the 31 March 2019 for the 2018 calendar year. If you haven’t seen the preview of the new compliance report, AUSTRAC have published some questions here

There are 8 fairly predictable categories with a series of more detailed questions that will provide AUSTRAC with much clearer intelligence on Reporting Entities activities to achieve and maintain compliance within their organisations. The categories are:

  • Your business
  • Managing your program
  • Independent review of your program
  • Assessing your ML/TF risk
  • Managing your employee risk
  • Your customers
  • Managing your customer risk
  • Your reporting and AUSTRAC feedback

Now is a good time to schedule and prepare for your annual assessment in preparation for this report and submission shouldn’t be taken lightly as your answers could be relied upon in future inspections by the Regulator so get in touch if you want to discuss!

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