Public education crucial on new AML laws
13 July 2006
Credit unions and building societies say a well-resourced public education campaign is essential to explain new anti money laundering (AML) and counter terrorism financing (CTF) laws to consumers.
A new draft version of the proposed AML/CTF regime was released today for public comment.
“We will closely examine the new draft AML/CTF Bill and rules to assess the likely impact on credit unions and building societies and their members,” said Adrian Lovney, general manager of Abacus – Australian mutuals.[1]
“We welcome the commitment of the Justice Minister, Senator Chris Ellison, to a more flexible, risk-based approach in the new draft bill and rules,” Mr Lovney said.
“Abacus has been working with the Government through the Minister’s AML/CTF advisory group and industry forums to ensure the package is a workable and proportionate response to the threats of money laundering and terrorism financing.
“If approved by Parliament, these new laws will deputise the entire financial sector to gather information on customers and lodge reports for circulation to a wide range of Federal, State and Territory agencies.
“The risks to customer privacy are significant. Financial sector businesses will be compelled to be the eyes and ears of law enforcement and to pry into the personal affairs of their customers.
“The draft rules impose a requirement to carry out ‘ongoing customer due diligence’. This means regulated entities must determine whether to collect such ‘know your customer’ (KYC) information as place of birth, income and assets, source of funds and financial position.
“We look forward to seeing non-prescriptive guidance from the AML/CTF regulator AUSTRAC about its expectations of regulated entities, particularly in regard to KYC information and transaction monitoring.”
For more information contact:
Adrian Lovney
General Manager, Abacus
02 8299 9034
or
Luke Lawler
Senior Adviser, Policy & Public Affairs, Abacus
02 6232 6666 or 0418 213 025
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[1] Abacus was formed on 1 July 2006 after a merger between the Credit Union Industry Association (CUIA) and the Australian Association of Permanent Building Societies (AAPBS). Australia’s 149 credit unions and 9 mutual building societies have 4.5 million members and total assets of $46.8 billion.
