Today AUSTRAC released guidance to educate Australia’s Superannuation sector of the risks they face from criminal exploitation and how they can proactively combat financial crime.
The guidance focuses on specific risks and potential scenarios relating to money laundering (ML), terrorism financing (TF) and serious financial crime specific to Superannuation companies. It also gives examples of methods these organisations can use to mitigate these risks and combat criminal threats.
This follows AUSTRAC’s publication of the Superannuation Money Laundering and Terrorism Financing Risk Assessment in July 2016, and is the latest in a suite of sector specific guidance released by AUSTRAC to identify and address ML/TF vulnerability in Australian industry.
AUSTRAC CEO Nicole Rose PSM said that while the superannuation sector is not traditionally associated with financial crime exploitation, AUSTRAC’s assessments show there is a higher than perceived risk and it is important that the sector understands these risks so that they can combat the threats.
“Criminals are ruthless in their efforts to find any vulnerability in law or business practices and the Superannuation sector is no different,” Ms Rose said.
“It is imperative that businesses have the necessary knowledge of their products, channels and customers to understand and respond to the ML/TF risks they face.
“A critical part of AUSTRAC’s role is to support, collaborate with, and build the capability of Australian businesses to enable them to combat financial crime and work with regulators and law enforcement to detect and disrupt financial crime in our country and this latest guidance is an example of us doing exactly that.
“AUSTRAC wants our objectives and that of our regulated community aligned, to create a financial system free of criminal exploitation. We believe that Australian businesses want to play their part in fighting criminal activity and we are committed to helping them do that.”
AUSTRAC collaborated with various Superannuation companies and Industry Bodies in the development of this guidance.
The Industry Specific Guidance: Superannuation sector is available on AUSTRAC’s website: https://austrac.gov.au/superannuation-sector-guidance