Digital currency exchange providers

Anti-money laundering & counter the financing of terrorism



Anti-Money Laundering & Counter Terrorism Financing Act

The Anti-Money Laundering and Counter Terrorism Financing Act 2006 (Cth) sets our criminal offences and requirements for lawful operations by financial institutions and Designated Non-Financial Businesses & Professionals (DNFBPs). This legislation and associated rules support the Financial Action Task Force (FATF) Specifications.

AUSTRAC enforcement

The AML/CTF Act is enforced in Australia by AUSTRAC, with well pubclised civil penalties against the Commonwealth Bank and Tabcorp. There have also been actions against several smaller DNFBPs, which resulted in financial penalties.

AUSTRAC guidance

Crypto-currency exchanges may refer to the AUSTRAC Guide for digital currency exchange (DCE) service providers. Teh relevant AUSTRAC page provides more comprehensive guidance - see Digital currency exchange providers.

Digital Currency Exchange (DCE) service providers

On 7 December 2017 Parliament passed the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2017 (Amendment Act). Royal Assent was granted on 13 December 2017. The Amendment Act expands the AML/CTF Act to include regulation of DCE providers. It is expected these changes will come into effect on 3 April 2018. Regulation will involve mandatory registration and compliance obligations, including:

* customer identification and due diligence;

* customer identification and due diligence;

* adopting and maintaining an AML/CTF program - this includes identifying, managing and lessening money laundering and terrorism financing risk;

* suspicious matter reporting;

* threshold transaction reporting - this involves cash amounts of $10,000 or more; and

* record keeping.

The definition of a digital currency is defined in the Bill.

Compliance is mandatory. How to comply?

AML Governance Associates can help

Unlike many consultants we we have a deep and thorough understanding of AML/CFT in leading edge industries - (online gambling since the 1990s) - recognised globally as experts. AML/CTF is not just a recently discovered consideration or offering (since 2007 our consultants have been recognised as experts in .

Implement a compliant AML/CTF program

With such extensive AML expetise, where AML Governance Associates is not working the regulatory authorities (i.e. AUSTRAC) we work with industry: devising and implementing AML/CTF programs (including the risk management justification for the program), mentoring and training staff. Typically our programs have been acknowledged by FIUs (Financial Intelligence Units - equivalent to AUSTRAC) as case studies of compliance.

AML Compliance Officer (MLRO) as a service

In some jurisdictions AML Governance Associates provide MLRO-as-a-service. Through remote access to data and records, and calls with management and staff, Governance Associates provide the mandatory expertise to operate compliant AML/CFT programs at a fraction of the cost of employing, training, and retaining suitable staff.

Financial institutions, banks, and de-risking

Because AML Governance Associates has a long history with AML/CFT in the context of digital industries, we have had an extended exposure to de-risking issues and have devised a program accordingly. This program is offered to DCEs, casinos, and financial institutions in some instances (where banking relationships can be costly to maintain).

Regular indepdendent review

The AML/CTF Act mandates a regular independent review of Part A of the AML/CTF Program. AML Governance Associates undertakes these reviews for several reporting entities in Australia and worldwide.

External audit

In some instances AUSTRAC may direct a reporting entity (including a DCE) to appoint an external audit. AML Governance Associates' principal consultant Alan Pedley is approved by AUSTRAC for this purpose..

Technical & business expertise Of relevance AML Governance Associates are technology experts with in-depth knowledge of blockchain, distributed ledger technology, and smart contracts.

Solution

Let's have a chat and discuss what your immediate AML compliance needs are before AUSTRAC finds non-compliance. AML Governance Associates will customise a plan for cost-effective, compliance that meets the needs of your venue.