On 19 May, AUSTRAC released 'the second public consultation on new AML/CTF Rules'. Among the proposed changes include the requirement for reporting entities regulated by AUSTRAC to develop, maintain and comply with policies to ensure that they do not contravene targeted financial sanctions obligations, including asset freezing, in the provision of their designated services.
To assist consideration of that consultation process, the Australian Sanctions Office seeks to clarify the proposed respective roles and responsibilities between it and AUSTRAC for entities implementation of sanctions requirements.
The Australian Sanctions Office is responsible for implementing and overseeing Australia's sanctions regimes, which includes imposing restrictions on trade and financial transactions with certain countries, individuals, or organisations, and monitoring for compliance on the regulated community. AUSTRAC plays a crucial role in supervising certain business for implementation of requirements to detect, deter and disrupt financial crime. These requirements including submitting suspicious transactions that may indicate criminal activity, thereby supporting the overall integrity of Australia's financial system.
As Australia's anti-money laundering and counter-terrorism financing regulator, AUSTRAC supervises reporting entities' policies to manage and mitigate money laundering, terrorism financing and proliferation financing risk. The proposed change is intended to ensure AUSTRAC-regulated reporting entities to have the necessary measures in place to be able implement targeted financial sanctions, and that the efficacy of those measures is subject to appropriate supervision by AUSTRAC.
