Simplicity in the eye of the beholder? Proposed Changes to Streamline Australian AML/CTF reforms

The Australian Attorney-General has commenced consultation on proposed reforms to simplify and modernise the operation of the Australian anti-money laundering and counter-terrorism financing (AML/CTF) regime. The reforms are intended to address the recommendations by the 2016 Report on the Statutory Review of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (2016 Review) and feedback from the industry that the AML/CTF regime in Australia is complex and limits the regulated entities’ ability to understand and comply with their AML/CTF obligations.

The Department said in the consultation paper that “clarifying the obligations in the [Anti Money Laundering and Counter-Terrorism Financing Act 2006 (Cth)] will reduce the burden on businesses of interpreting complex provisions. Similarly, changes to the Rules will help regulated entities to understand the outcomes they are expected to achieve. The Rules will be supported by guidance materials targeted at assisting regulated entities to implement effective AML/CTF measures within their businesses.”

Some of the proposed reforms include:
• streamlining Part A and Part B of the AML/CTF Program into a single program;
• simplifying the requirements around customer due diligence;
• lowering the reporting thresholds for the gambling sector;
• amending the tipping-off offence;
• extending the regulation of digital currency exchanges; and
• modernising the travel rule.

Submissions and feedback can be submitted on the Department’s Consultation hub. The closing date for submissions is 16 June 2023.