find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Real Estate & Projects Lawyer (6+ years PAE)
Category: Property Law | Location: Sydney CBD, Inner West & Eastern Suburbs Sydney NSW
· Top tier firm with offices nationally · High profile clients
View details
AML business’ responsibility: Fed

AML business’ responsibility: Fed

IT IS the responsibility of the financial services sector, not government, to ensure that criminals do not exploit business for money laundering, according to the Parliamentary Secretary to the…

IT IS the responsibility of the financial services sector, not government, to ensure that criminals do not exploit business for money laundering, according to the Parliamentary Secretary to the federal Treasurer.

As the corporate sector’s ire continues to be raised by what it sees as over prescriptive, onerous regulation, Chris Pearce said industry participants could avoid “the need for overly restrictive regulation by sensibly managing their risks”.

He added that when the Federal Government finally reveals its hand on anti-money laundering (AML) reform, it will be up to business to develop and implement AML programs “that complement legislative reforms”. He offered no date for the publication of the Government’s plans. Anecdotal evidence suggests that the financial services sector is trying to develop frameworks for the new regime, a task that is near impossible while the Government continues to stall.

“We’ve had a 12-month risk assessment done on AML, but what’s the point. We have very little idea what the Government is planning,” said one senior risk management head in a financial services firm.

While much can be interpolated from the Financial Action Task Force’s 40 recommendations on money laundering, which Australia is attempting to comply with, there are fears that the process will be stalled by regulatory and enforcement confusion. Austrac, at present a financial intelligence unit, will be responsible for enforcing the new regime.

While the banking and financial markets communities have been subject to AML rules both here — under the Financial Transaction Reports Act 1988 (FTRA) — and internationally for some time, the new regime will represent a marked change.

“In Australia there is a very strong culture around the narrow FTRA regime,” said one AML expert. “It has created a dominant culture around what AML is and what you are required to do. But the new law will take Australia away from that interpretation to a broader base.”

But despite AML being the responsibility of business, Pearce said the Government is moving to protect Australia’s “enviable” reputation through its reforms, despite its delaying resulting in the country being placed on some money laundering watch lists.

Stuart Fagg is the Editor of Risk Managementmagazine, Lawyers Weeklys sister publication

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

AML business’ responsibility: Fed
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Aug 21 2017
Is your firm on the right track for gig economy gains?
Promoted by Crowd & Co. The way we do business, where we work, how we engage with workers, ev...
Scales of Justice, Victorian County Court, retiring judges
Aug 21 2017
Replacements named for retired Vic judges
Two new judicial officers have been appointed in the Victorian County Court, following the retire...
Applauds
Aug 21 2017
LCA applauds proposed Modern Slavery Act
The Law Council of Australia has welcomed new recommendations for the development of a Modern Slaver...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...