The financial planning industry has welcomed the second draft of proposed laws against money laundering and terrorism finance – known as the Anti-Money Laundering-Counter Terrorism Funding (AML-CTF) Act.

The Federal Government released a revised version last week and is accepting public comment until the end of the month.

Financial Planning Association (FPA) CEO Jo-Anne Bloch says the Government has taken much of its advice on board, particularly by exempting planners from laws demanding they reveal all customer identities – even those just seeking advice.

“It is particularly pleasing to note that the Government has removed the requirement to identify customers at the advice stage,” she said. “We need to ensure we have a reasonable and meaningful approach to applying the checks required of planners, rather than a costly and ineffective one.”

The FPA says it will push to have a three-year transition period attached to the legislation. This will ensure its principal and practitioner members will have enough time to adapt to the new requirements.

Other industry groups also support the new draft. Deloitte’s Forensic AML-CTF partner Chris Cass says the legislation now features a more risk-based approach to tracking the proceeds of crime.

“The Government has listened to industry and moved away from a ‘one size fits all’ approach,” he said.

“Now organisations will be able to identify where their own potential risks lie and then decide how they are going to manage those risks.”

A spokesman for Justice Minister Chris Ellison says he hopes the bill will be tabled in parliament before the end of the year.

After this next round of public consultation, the proposed legislation will again be considered by a Senate committee before a final version can be drafted.