Australian financial institutions want AML loopholes solved

Monday 4 October 2021 14:00 CET | News

Australian banks and fintechs have raised concerns to the senate over major loopholes in the country’s anti-money laundering legislation.

The entities have warned that gaps in the current framework impact the country’s international reputation. The Australian Banking Association, the Reserve Bank of Australia, Bendigo and Adelaide Bank, and Fintech Australia, are among respondents to a senate inquiry into the adequacy and efficacy of the country’s anti-money laundering and counter-terrorism financing (AML/CTF) regime. 

The organisations have outlined support for ‘Tranche 2’ legislation that would have Designated Non-financial Business and Professions (DNFBPs) such as law firms, accountants, and real estate agents coming under similar laws to banks, emitters, and wagering companies in relation to AML/CTF. This has been repeatedly recommended by the FATF/Asia Pacific Group (APG) in their Mutual Evaluation Reports (MERs) on Australia.

DNFBPs are known as ‘gatekeepers’ for their role in facilitating individuals or companies entering the financial system, as they can play a vital role in preventing money laundering. As representatives say, the current arrangements of not covering DNFBPs arguably have placed an additional burden on those parts of the financial system that are already captured by the regime and are working with AUSTRAC and law enforcement to address financial crime.

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Keywords: regulation, AML, fintech, financial institutions, fraud management
Categories: Fraud & Financial Crime
Countries: Australia
This article is part of category

Fraud & Financial Crime

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