The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) covers the financial sector, gambling sector, bullion dealers and other professionals or businesses that provide services covered by the Act.
The AML/CTF Act is part of a legislative package which brings Australia into line with international best practice to deter money laundering and terrorism financing.
The AML/CTF Act places a number of obligations on reporting entities when they provide designated services, including: enrolling and/or registering your business with AUSTRAC, customer identification and verification of identity, record keeping, establishing and maintaining an AML/CTF program, ongoing customer due diligence and reporting (suspicious matters, threshold transactions and international funds transfer instructions).
The AML/CTF Act and the supporting AML/CTF Rules together implement a principles-based and risk-based approach to regulation.
Reporting entities determine how they meet their obligations based on their assessment of the risk of whether providing a designated service to a customer may facilitate money laundering or terrorism financing.