Anti Money Laundering

The Problem

Money laundering and terrorism financing are a significant and growing risk to many financial organisations. Money launders will go to great lengths to ensure that their transactions are indistinguishable from legitimate transactions.

The new AML/CTF regime under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and the Anti-Money Laundering and Counter-Terrorism Financing Rules, 2007 introduces a risk based approach to counter the AML/CTF problem. The obligations under the AML/CTF Act & Rules are imposed on a wide range of financial services organisations (reporting entities) including: banks; building societies; credit unions; superannuation funds ; and on the gambling sector.

The Risk

Every organisation (reporting entity) covered by the regime must take a risk based approach to designing a program for identifying the degree of money laundering risks associated with their customers/clients and transactions. The program will allow the organisation to focus on those customers/clients and transactions which potentially pose the greatest ML/TF risk. The program must "identify, mitigate and manage" the AML/CTF risks that an organisation may reasonably face when providing a designated service.
The key areas of an AML/CTF program are:
  • Customer Identification Program
  • Customer Due Diligence
  • Transaction Monitoring Program
  • Record Keeping
  • Reporting of Suspicious Matters
  • Training of staff
  • Audit of the program
  • Appointment of an AML/CTF Compliance Officer

Our AML/CTF Services

SSAMM has real and extensive legal and consulting experience in AML/CTF in Australia, the UK, and Asia . We have assisted numerous financial services organizations, both with a national and an international presence. With our knowledge and skills in AML/CTF, risk identification and compliance framework design we can offer clients confidence that their AML/CTF needs are not only met but are effective and efficient. We understand the importance of a risk based approach as it prioritises the organisation’s effort and tailors that effort to the AML/CTF risks as every organisation is different.

Risk Identification Workshops

The key to the risk based approach is to understand the reasonable ML/TF risks, whilst providing designated services, associated withcustomers and transactions. Once those risks have been identified the AML/CTF program can be designed or amended as appropriate. .ML/TF risk is not static: therefore ML/TF risk assessments must be reviewed regularly.

SSAMM will facilitate workshops which will identify the key money laundering risk criteria: country risk; customer risk; service risk and apply them to the organisation or business unit. Situations which need enhanced controls will be identified and those controls designed. SSAMM will also deliver training programs.

AML/CTF Independent Reviews

Every AML/CTF program must be subject to regular Independent review (Rules 8.6 & 9.6), , and at least annually. The purpose of the Independent review is to ensure that the Part A program is: effectice; complies with the Rules; has been implemented; has been complied with. Remember that money launders will target organisations with real or perceived weaknesses in their AML/CTF programs. Organisations will also be required to report to AUSTRAC on its compliance with the legislation.

SSAMM will undertake an audit of your AML/CTF program to test for weaknesses and currency and that it meets legislative requirements. The review is based on the AML Rules and Compliance Standard AS3806:2004.

AML/CTF Risk Awareness Training

The training and education of all relevant staff is critical to the success of a risk based approach to AML/CTF. It is considered one of the key ML/TF controls. Training must raise awareness in staff of the legal and regulatory environment in which the organisation operates, the need for AML/CTF controls, the risks to the organisation, and how its own AML/CTF program operates.

SSAMM will provide and tailor appropriate AML/CTF risk awareness training workshops for your organisation.

Enforcement Action Remediation

Under the AML Act AUSTRAC has a wide arsenal of enforcement powers ranging from criminal prosecution to civil penalties. It also has several administrative sanctions including: enforceable undertakings; making remedial directions; and requiring external audits (ML/TF risk management & compliance with the Act).

SSAMM will work with the AMLCO and the compliance team to assist your organisation meet the terms of the enforceable undertaking. SSAMM will carry out the external audit as required.

Anti-Money Laundering Compliance Officer Support

The appointment of an Anti-Money Laundering Compliance Officer (AMLCO) is required under the Rules. The AMLCO is a key person in your organisation’s AML/CTF program.

SSAMM understands that not all organisations have people with the necessary AML/CTF, compliance & legal skills to carry out the role of AMLCO. SSAMM will provide one of its experienced AML/CTF consultants (who will also be a legal practitioner) to carry out the role of AMLCO in your organisation.

Suspicious Matter Identification Assistance



A reporting entity has an obligation to report matters which it “suspects on reasonable grounds” to be suspicious (Sect 41). Whether or not a matter is suspicious requires investigation on behalf of the reporting entity and the AMLCO.

SSAMM can assist with the suspicious matter reporting requirement by assisting the AMLCO carry out the investigation (without tipping off). As your SSAMM consultant is a legal practitioner communication with between the AMLCO and the consultant in matters relating to the investigation is subject to legal professional privilege.

AML/CTF Implementation Program

AML Act obligations arise when an organisation begins to provide designated services (just like obtaining an AFSL before commencing providing financial services). There is considerable work required to meet the AML Act obligations. SSAMM will work with your organisation to provide detailed planning and realistic timelines for achieving AML/CTF regulatory compliance.

SSAMM will work with your organisation to provide detailed planning and realistic timelines for achieving compliance with the obligations.

Contact Paddy Oliver poliver@ssamm.com.au or Ulysses Chioatto uchioatto@ssamm.com.au to discuss your needs.

 

 
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