Austrac toughens up on anti-money laundering
Insurance premium funders and life insurers can expect close attention over compliance with new anti-money laundering and counter-terrorism legislation.
The Australian Transaction Reports and Analysis Centre (Austrac) last week released its new supervisory strategy, which sets out the agency’s plan for supervision and enforcement action.
The Anti-Money Laundering and Counter-Terrorism Financing Act was passed in 2006 and all obligations are now in effect following a staggered implementation.
Earlier this month Austrac imposed its first enforceable undertakings concerning Barclays Bank and the International Commercial bank.
The strategy document identifies a disparity “in size, in familiarity with regulation and in access to compliance resources” among lenders that are not authorised deposit-taking institutions. They include premium funders.
A key area of focus for premium funders is a requirement to maintain detailed information on any refunds paid on the early termination of contracts.
Austrac intends to undertake individual assessment and intensive monitoring of transaction reports submitted by these and other lenders.
It has warned that where assessments including on-site visits don’t result in improved compliance, “they are likely to result in direct enforcement action”.
Of providers of non-banking financial services such as life insurers, Austrac notes large organisations are accustomed to regulation and either skilled in risk management or have access to the appropriate skills.
The Australian Transaction Reports and Analysis Centre (Austrac) last week released its new supervisory strategy, which sets out the agency’s plan for supervision and enforcement action.
The Anti-Money Laundering and Counter-Terrorism Financing Act was passed in 2006 and all obligations are now in effect following a staggered implementation.
Earlier this month Austrac imposed its first enforceable undertakings concerning Barclays Bank and the International Commercial bank.
The strategy document identifies a disparity “in size, in familiarity with regulation and in access to compliance resources” among lenders that are not authorised deposit-taking institutions. They include premium funders.
A key area of focus for premium funders is a requirement to maintain detailed information on any refunds paid on the early termination of contracts.
Austrac intends to undertake individual assessment and intensive monitoring of transaction reports submitted by these and other lenders.
It has warned that where assessments including on-site visits don’t result in improved compliance, “they are likely to result in direct enforcement action”.
Of providers of non-banking financial services such as life insurers, Austrac notes large organisations are accustomed to regulation and either skilled in risk management or have access to the appropriate skills.