Reforming Anti-Money Laundering and Counter-Terrorist Financing Regulations in Australia

The Australian government has introduced a new approach to combat money laundering and terrorist financing, focusing on transparency as a key safeguard for the integrity of the financial system.

Effective Co-operation between Stakeholders

Combating money laundering and terrorist financing requires effective co-operation between stakeholders, including accountable institutions, supervisors, and government agencies. This collaboration is crucial for identifying and mitigating risks associated with these illegal activities.

Structure of the Counter Money Laundering Advisory Council (CMLAC)

The previous structure of the CMLAC was too rigid, leading to its repeal. In its place, a new Inter-Departmental AML/CFT Committee will be established to promote collaboration and information sharing among stakeholders.

Sector or Sub-Sector Bodies

Sector or sub-sector bodies will facilitate consultation at appropriate levels with supervisory authorities and accountable institutions. This will enable more effective communication and coordination between stakeholders, ultimately enhancing the effectiveness of anti-money laundering and counter-terrorist financing efforts.

Improving Relationships between Accountable Institutions and Supervisors

The new approach aims to improve relationships between accountable institutions and supervisors by:

• Enhancing engagement and communication
• Facilitating consultation at appropriate levels
• Encouraging information sharing and collaboration

Issues to be Discussed by Envisaged Structures

The following issues should be discussed by the envisaged structures:

• Improving reporting to the Financial Intelligence Centre (FIC)
• Enhancing transparency and accountability in anti-money laundering and counter-terrorist financing efforts
• Identifying and mitigating risks associated with domestic prominent influential persons, their family members, and close associates

Risk-Based Approach to Assessing Risks

When assessing the risks posed by domestic prominent influential persons, their family members, and close associates, a risk-based approach should be used. This involves identifying and evaluating potential risks based on relevant factors, such as:

• Political influence
• Financial resources
• Business connections
• Past behavior