16 September 2005 
 
The new anti-money laundering (AML) and the counter-terrorist financing (CTF) reforms will strike a balance between regulation and a flexible application of obligations on accountants following discussions held between Senator Chris Ellison, Minister for Justice and Customs and representatives from the accounting industry. The AML/CTF reforms will implement the recommendations of the Financial Action Task Force on Money Laundering—the recognised international standard in measures to combat terrorist financing and money laundering  
 
The new AML/CTF system will be implemented in stages with the initial phase of AML reforms expected next month, covering the Financial Services Industry and accountants that provide designated financial services. The second phase will consider extending coverage to other accounting services, once the consultations on the initial reforms have been completed.  
 
In line with the Government’s commitment to minimise regulatory impact on small business, the reforms will address onerous compliance obligations identified by the accountancy profession such as the requirement to identify existing clients and the duplication of customer identification where multiple reporting entities are involved.  
 
“We are pleased with the flexibility within the agreement reached with the government as many of our members’ main concerns with the proposed legislation should be addressed,” said Bill Palmer, General Manager, Standards and Public Affairs at the Institute of Chartered Accountants of Australia.  
 
The proposed AML system will exempt existing customers from identification requirements unless specific risk-triggers are met. These risk-triggers will be set out in the Rules that are to be agreed between industry and AUSTRAC.  
 
When the draft exposure Bill has been released, a three-month consultation on more detailed implementation issues between the accounting bodies and the Government is expected.