Username:
Password:
Forgot Password?

Vigilance required to combat anti-money laundering in Australia
Print this Article Print this Article
Email this Article

11th May 2006 
 
It is estimated there are $2 billion worth of transactions in Australia per year with money laundering connotations said Richard Thomas, Partner at Deloitte at the Chartered Accountants Business Forum earlier today.  
 
“Globally money laundering is estimated to be two to five per cent of the GDP. It is a global responsibility to manage money laundering and professionals in the financial services sector such as accountants need to be especially vigilant. We should support the anti-money laundering legislation when it is finally enacted where the government adopts a risk based approach,” said Thomas.  
 
Money laundering is funds generated from illegal activities introduced into the financial system to disguise or obscure the original source.  
 
Accountants are seen as a target for money launderers because:  

  • Firms can offer legitimacy and introductions to other advisors
    •  
  • They are expert in the creation of corporate vehicles (eg managed investments or trusts) and facilitation of other transactions
    •  
  • Firms can offer international connections, either through member firms or networks
 
The Anti-Money Laundering and Counter Terrorism Financing Bill 2005 consultation period ended 13 April 2006. The Institute of Chartered Accountants compiled a joint submission with CPA Australia. The Bill is expected to be presented to the House of Representatives in mid 2006 and gain Royal Assent by the end of this year.  
 
“Since 9/11 there has been significant political pressure to combat proceeds of crime and the financial wherewithal behind terrorism. Terrorist financing can divert legitimate funds such as from a charity, and uses them to finance terrorism,” Thomas continued.  
 
“The proposed AML / CTF Bill will help combat money laundering on home soil, but financial professionals such as accountants need to ensure they have the training and the resources to comply with the legislation. A sensible, risk based approach will hopefully prove not too onerous,” said Thomas.  
 
Accountants need to assess operational impact on their organisation by:  
  • Risk ranking of customers, products, services, channels
    •  
  • Obligations under legislation
    •  
  • Robust customer identification procedures
    •  
  • Transaction monitoring systems
 
For more information on the Institute and CPA submission and information on the proposed AML / CTF Bill visit www.icaa.org.au