AUSTRAC has released a new format for reporting entities to submit their annual compliance report (Compliance Report). This new compliance reporting format comes as a result of AUSTRAC’s reforms to their previous Compliance Report requirements which were suspended for the 2017 reporting period, and is designed so that reporting entities are required to provide more meaningful information to AUSTRAC about their business model, money laundering and terrorism financing risks and compliance with anti-money laundering and counter-terrorism financing (AML/CTF) obligations.
The new reporting regime will come into play from 2 January 2019 and will relate to AML/CTF compliance in 2018 (1 January to 31 December 2018). All reporting entities are required to complete a Compliance Report for 2018 unless they are:
- a small gaming venue licenced to operate no more than 15 electronic gaming machines;
- an Australian financial services licence holder who only makes arrangements for another person to receive a designated service covered by the AML/CTF Act; or
- a remittance provider that only provides services as an affiliate on behalf of a remittance network provider.
Compliance Reports for 2018 will need to be submitted though AUSTRAC’s Online Portal by 31 March 2019.
Examples of questions that reporting entities may be expected to answer for the 2018 Compliance Report are set out in AUSTRAC’s website. Given the relatively short window of time for submitting the new reports, we suggest that financial services providers who are reporting entities start turning their minds towards completing this revised regulatory requirement.
Please contact us if you require further advice or assistance.