A question that we get frequently asked is whether a reporting entity is required to report any breaches of the anti-money laundering and counter-terrorism financing (AML/CTF) obligations and/or its own AML/CTF Program to the Australian Transaction Reports and Analysis Centre (AUSTRAC). The short answer is no. AML/CTF Breach Reporting? The question on the reportability of …

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The beginning of the year tends to be when a lot of reporting entities consider to get an independent review done on their Anti-Money Laundering and Counter-Terrorism Financing Program (‘AML/CTF Program’, the ‘Program’). I’d like to share my thoughts on topic and related considerations, and to address a few common questions that we tend to …

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The Covid-19 development in the past month or two has really put the spot light on the importance of a robust Business Continuity Plan (BCP). Many Australian Financial Services Licence (AFSL) holders have either partially or fully rolled out their BCPs. A lot of financial services professionals are now working from their own home as …

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An Australian Financial Services Licence (‘AFSL’) holder that is authorised to deal with retail clients is generally required to maintain a membership with the Australian Financial Complaints Authority (‘AFCA’). It is therefore important to understand how AFCA approaches its work when dealing with disputes between financial services organisations and their clients. We reviewed approximately 30 …

Continue reading “OTC Derivatives Client Suitability Assessment: AFCA’s Approach”

There appears to be an increase in the acceptance of scanned copies of certified documents in recent years. This is understandable as it is much faster and easier to obtain a scanned copy than waiting for the physical certified document to arrive. However, I would be inclined to think that a scanned copy of a …

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It is not uncommon to hear people say something along the line of “we only have wholesale clients. We don’t have to worry about AML stuff.” This article aims to bust this myth and explain how reporting entities that deal with wholesale clients arguably need to be more vigilant in carrying out their Know Your …

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Reporting entities are increasingly more aware of their obligations to identify and verify their customers before providing them with any services. This process has also been made easier by the electronic verification solutions. In comparison, however, a reporting entity’s ongoing Anti-Money Laundering and Counter-Terrorism Financing (‘AML/CTF’) obligations do not appear to have received sufficient attention. …

Continue reading “Transaction Monitoring Program – A Missing Piece in The Puzzle”

AUSTRAC recently initiated legal proceedings against Commonwealth Bank of Australia on CBA’s alleged systematic breaches of its AML obligations. The incident has attracted a lot of media attention. Articles have merged in the past a few days blaming all the big banks for being involved in money laundering activities. Before we stamp all banks as …

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2014 is an eventful year when it comes to compliance. This article outlines the most significant regulatory events and updates of 2014 from the perspective of CFDs and FX providers. It should be noted that these events are relevant to a lot of other Australian Financial Services Licensees and Reporting Entities (REs) under the Anti-Money Laundering and Counter-Terrorism …

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It is not uncommon for company senior executives to shake their heads at the mention of the word ‘fraud’. “No, we don’t have that problem.” “Our people wouldn’t do that.” “Surely the procedures will take care of that” are among the typical responses. While larger organisations may be more vulnerable to fraud, it is safe …

Continue reading “On The Topic of Fraud (Part Two): An Organisational Health Check”