AML/CTF Program
Compliance with the Anti-monetary Laundering and Counterterrorism act is not a one-off process; hence one needs to ensure they are in compliance with the provision of the act all the steps of the way. The reporting entity has to remain compliant with the Australian law, AUSTRAC and its own AML/CTF program. The business has to keep performing lots of obligations for compliance and maintain the AUSTRAC registration.
Each of the reporting entities is mandated to have an AML/CTF program. There are three standard programs suited for different programs. There are three main programs, standard, joint and special AML/CTF programs. The standard program is fit for a standalone reporting body, while the joint is suitable for multiple reporting within a given group structure. The special AML/CTF is designed for a financial service licensee that organizes for another financial services licensee to get products and services for its customers.
The joint and standard programs are more comprehensive with part A and Part B. The scope of part A deals with the identification, management and mitigation of ML/TF risk, while part B deals with the KYC or the customer identification and verification process.
The full program should include procedures to identify, manage and mitigate risks in the act, set out the application of KYC processes, develop a process to screen employees before employment or promotion and, constantly train staff and representatives on AML/CTF risk awareness. The program should also include storage of relevant records, developing and monitoring customer due diligence process, and developing a system to monitor compliance with the AML/CTF Act and the AUSTRAC regulations. Reporting suspicious transactions, international fund transfers and threshold reports to AUSTRAC should also be at the forefront.
Transaction monitoring needs to be in place so it is possible to note any suspicious transactions. Proper transaction monitoring is not only required for compliance but a crucial step in ensuring that relevant data is collected. There are flexible and practical steps firms can take to demystify the law to help meet the risk assessment requirements, AML/CTF staff training, and transaction monitoring and reporting.
How can we help
You can procure help to go through the AML/CTF program to ensure it runs in tandem with the legal requirements. Professionals can check the draft to help answer all relevant questions before rolling out the program. The team helps translate part A of the AML/CTF from a detailed discussion of risk assessment to a practical risk rating of your customers while keeping the program dynamic to respond to new challenges.
Each firm has different needs and requirements and preferences such as size and volume business, available AML/CTF resources, and the nature of the designated service provided by the reporting entity that require solutions to be deeply tailored to the firm yet consistent with the law.
ACP Advisory can be involved in helping with the compliance by conduction inductions and further training on AML/CTF, provide regular compliance review and prepare reports for the board and senior management. They can also ensure the documents are in order by reviewing compliance reports or meeting with senior management. Wherever the services your business need with ongoing compliance, you can feel free to consult with ACP advisory for the much-needed support.
