Financial Crime

When is ECDD required for family trusts and SMSFs under the AML/CTF reforms?

AUSTRAC’s AML/CTF reforms do not make ECDD automatically required for family trusts or SMSFs. ECDD is required when trust CDD...

What AML/CTF governance evidence does AUSTRAC expect?

AUSTRAC does not prescribe a standard AML/CTF governance evidence pack. However, reporting entities should maintain documented evidence demonstrating that AML/CTF...

What makes an AML/CTF risk assessment defensible?

AUSTRAC expects reporting entities to maintain an AML/CTF risk assessment that accurately identifies, assesses and documents their money laundering, terrorism...

In the context of AML/CTF, what are “suspicious matters” or “unusual activity”?

Under the AML/CTF regime, AUSTRAC expects reporting entities to identify and assess unusual activity that may indicate money laundering, terrorism...

What customer due diligence (CDD) is expected of Tranche 2 entities under the AML/CTF reforms?

AUSTRAC expects Tranche 2 entities to apply the AML/CTF customer due diligence framework when providing a designated service, unless a...

As a licensee, what specific AML/CTF arrangements do I need to have in place if my advisers use MDAs?

AUSTRAC expects an AFS licensee using discretionary MDA arrangements to have full AML/CTF controls where advisers provide Item 3 services....

As a licensee, what do I need to have in place if my advisers use MDAs?

ASIC and AUSTRAC expect an AFS licensee using MDAs to have specific authorisations, supervision, governance, and AML/CTF controls in place....

Does recommending an MDA expose me to increased AML/CTF obligations?

AUSTRAC’s Item 54 exemption generally still applies when an adviser only recommends or arranges access to an MDA. Increased AML/CTF...

Does transacting on an MDA using discretion expose me to increased AML/CTF obligations?

Yes. AUSTRAC generally treats discretionary transacting on an MDA as potentially outside Item 54-only relief and within Item 3, where...

What customer due diligence (CDD) records must advisers retain, and for how long?

AUSTRAC’s AML/CTF framework requires reporting entities that provide designated services to retain customer due diligence (CDD) records for at least...

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