CompliSpace Interview With AUSTRAC CEO, Neil Jensen - CompliSpace
CompliSpace Interview With AUSTRAC CEO, Neil Jensen13 July 2009 |
| As part of our continuing AML/CTF update service, James Cozens of CompliSpace recently interviewed Neil Jensen, the current AUSTRAC Chief Executive Officer, and gained some fresh insights into how the regulator is viewing the world. |
| In this Alert we look at: |
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AUSTRAC gets tough on Compliance Reporting |
| It is estimated that some 4,000 reporting entities failed to lodge their Compliance Reports with AUSTRAC as required before the end of March 2009. James took the opportunity to push Mr. Jensen on this matter and it seems that AUSTRAC are now starting to toughen up their stance with respect to enforcement. Mr. Jensen commented: |
| "There are a whole range of tools that are available to us from enforceable undertakings, through to criminal penalties, civil penalties and injunctions. I think it won't be too long before you start to see that we are serious in what we are saying and doing. Actions will be taken and that will involve a range of actions depending on what the conduct is and the availability of evidence." |
| These last remarks were supported by two AUSTRAC media releases on 1 July 2009 in relation to its acceptance of enforceable undertakings from Barclays Bank PLC (Barclays) and Mega International Commercial Bank Co Ltd (Mega ICBC). This action followed breaches of Australia's anti-money laundering and counter-terrorism financing (AML/CTF) laws. |
Tranche II – Who, When and What |
| An announcement on the progress of Tranche II, which is expected to bring lawyers, accountants, real estate agents and jewelers within the AML/CTF regime, was recently published on the Attorney General Departments website. The Government now proposes to reconsider the implementation process for the second tranche of reforms in December 2009, which means that we are unlikely to see anything happen until late 2010 at the earliest. There seems to be little clarity in terms of the estimated numbers of businesses that will need to comply with this legislation, and also exactly who it will apply to. When this issue was put to Mr. Jensen, we were told that "there could be up to 40,000 entities that are possibly going to be involved in the Tranche II but we don't really know what the Tranche II is at this stage." |
| From a practical point of view, AUSTRAC expects that those businesses caught under Tranche II will be required to implement effective risk management and compliance programs. This is an area that many current reporting entities are failing to address effectively, so it will be interesting to see how up to 40,000, predominately small and medium sized businesses, will cope with this challenge. AUSTRAC have produced a useful Risk Management Guide for small to medium sized entities which can be accessed on our AML/CTF resource page. |
Typologies and Case Studies Report 2009 |
| During our interview with Neil Jensen, he highlighted the release of the Typologies and Case Studies Report 2009. This is the third report in a series that AUSTRAC has produced to assist industries to fulfill their anti-money laundering and counter-terrorism financing obligations. There are some interesting references to money-laundering activities in relation to managed investment schemes, as well as some more general cases. A copy of the typologies report is available on our resource page. |
The Credibility of the AML/CTF Regime |
| Overall, Mr. Jensen stated that he was pleased with the work that the regulator is doing, describing AUSTRAC as "a successful organisation that listens to people and then reacts in an appropriate way". However, doubts still remain over the credibility of the regime as a whole, due to the continued delay in the implementation of the second tranche of legislation, and also the poor levels of reporting and compliance. For more information on this interview, or complying with the AML/CTF legislation, please contact James Cozens on james.cozens@complispace.com.au or +61 (2) 9299 6105. |
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