Here is a roundup of recent news from AUSTRAC.
AUSTRAC Industry Contribution Levy
The Ministerial Determination for the 2017-18 industry contribution levy has now been registered. Readers can view the relevant legislation by clicking here.
The industry contribution is a levy imposed by AUSTRAC to recover the costs of its regulatory and financial intelligence functions. Reporting Entities which fall within the jurisdiction of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (Cth) are subject to the levy. A Reporting Entity that is liable to pay the levy is an entity that was required to be enrolled with AUSTRAC on the ‘census day’ (normally 1 July each year).
Reporting Entities must report the total earnings for themselves and any related leviable entities. AUSTRAC uses this information to help it determine which entities are liable to pay the industry contribution and the amount they are required to pay.
International Financial Intelligence Codeathon
AUSTRAC is co-hosting the inaugural Intelligence Codeathon for financial intelligence units from 18 to 19 November 2017 in Kuala Lumpur, Malaysia.
The codeathon will integrate developers, designers, analysts and other relevant individuals together to solve financial intelligence challenges. Innovative solutions will be made available to the public and may be used as case studies to fight terrorism financing.
This codeathon is designed not just to bring various regional regulatory bodies together, but also to provide opportunities for fintechs and tech-savvy individuals to contribute their ideas in order to combat serious global issues.
Minister for Justice
The Federal Government has entrusted AUSTRAC with the responsibility of blocking funding to Islamic State aligned terrorist groups operating in the South East Asian region.
The Minister for Justice Michael Keenan said that “this money (that is, $4.6 million) will be used to detect and disrupt funding to Islamic State-aligned terrorist groups, and I look forward to our international partners joining a new regional Counter ISIL financing group.”
Click here if you would like to view the Ministry of Justice’s Media Release.
Calls to Declare Excess Cash
There have been ongoing issues with international travellers failing to declare currency (cash) in excess of $10,000. There are no laws which limit the amount of cash that may be carried in or out of Australia, however, amounts of at least $10,000 must be declared first via an online form.
The fundamental reason why authorities need such information is to stop money laundering by organised crime syndicates and to prevent the offshore funding of terrorist organisations.
Ariel & Associates Pty Ltd has had extensive experience in dealing with AML/CTF issues since the inception of the legislation in 2006. We have drafted AML/CTF Programs, undertaken Independent Review of Reporting Entities’ AML/CTF Programs and have provided holistic advice for entities to ensure their processes and policies comply with their legislative and regulatory obligations.
Should you have any queries about AUSTRAC, ASIC or other issues involving compliance, licensing, or corporate governance, please contact Jeremy Danon, director and principal of Ariel & Associates Pty Ltd on (02) 8223 3355 or at jeremy@ariel.associates.