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AUSTRAC releases draft rules on threshold transactions and revised draft on ongoing customer due diligence


The Australian Transaction Reports and Analysis Centre (AUSTRAC) released draft rules on threshold transaction reports, and a revised draft on ongoing customer due diligence.

AUSTRAC is Australia's anti-money laundering and counter-terrorism financing regulator and specialist financial intelligence unit. It administers the Financial Transaction Reports Act 1988 (FTR Act) and the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

Under the Anti-Money Laundering and Counter-Terrorism Financing Act, all reporting entities will be required to report certain threshold transaction details and carry out ongoing customer due diligence from 12 December 2008.

The draft Anti-Money Laundering and Counter-Terrorism Financing rules released for consultation set out the proposed reportable details for threshold transactions to AUSTRAC as well as requirements for ongoing customer due diligence. Public comment on the draft rules is sought by 14 September 2007.

According to AUSTRAC, the draft rules include some important changes to reporting requirements on threshold transactions to incorporate information concerning agents of customers.

The previous draft rules on threshold transaction report requirements were released for public comment on 4 July 2006. AUSTRAC has since revised these rules to align with the provisions in the Anti-Money Laundering and Counter-Terrorism Financing Act.

The previous draft of the ongoing customer due diligence rules was released for public comment on 5 July 2007. AUSTRAC revised these rules based on comments received.

According to AUSTRAC, from 12 December reporting entities will have new Anti-Money Laundering and Counter-Terrorism Financing program obligations and will have to lodge compliance reports with them by 31 March 2008. AUSTRAC’s priority is to assist industry with their obligations under the legislation by providing education and guidance materials, such as these rules.

4-Sep-2007
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