More Surveillance Under New Anti-money Laundering Laws

27 October 2006

Customers of financial institutions, including members of credit unions and building societies, will be subject to significantly increased surveillance with the implementation of new anti-money laundering and counter-terrorism financing (AML/CTF) laws.

The Justice Minister, Senator Chris Ellison, announced today that the AML/CTF Bill 2006 will be introduced as soon as possible and the Government hopes it will be passed preferably this year.

Abacus – Australian Mutuals, representing credit unions and mutual building societies, supports the Government’s objective of a financial system that is hostile to money laundering and terrorism financing.

“But it is important that the requirements of this legislative regime are well understood by the public,” said Abacus General Manager, Adrian Lovney.

“Regulated entities will have to engage in so-called ‘customer due diligence’, decide when to collect ‘additional know your customer’ information, monitor transactions for unusual activity, and report suspicious matters to the Government,” Mr Lovney said.

“These suspicious activity reports can be circulated to a wide range of Federal and State agencies and departments.

“The impact on the privacy of our members, and financial sector customers generally, is potentially very considerable.

“We look to the regulator, AUSTRAC, to provide guidance to regulated entities to assist them to implement a regime that is that is effective, proportionate and well targeted to high risks.

“AUSTRAC’s guidance will be critical in minimising intrusion into customer privacy and in minimising the regulatory compliance burden of these sweeping new laws.”

For more information:

Luke Lawler
Senior Adviser
Policy & Public Affairs
02 6232 6666
0418 213 025