The new Anti-money Laundering and

Counter-Terrorism Financing Laws

At a glance

Australia has implemented the new AML/CTF laws to meet international standards and to help protect businesses from being misused for money laundering and terrorism financing.

As a customer seeking certain services you may be asked to verify your identity.

By verifying your identity you are helping to protect Australian businesses from being misused for the purposes of criminal activity.

What is money laundering and terrorism financing?

The goal of most criminal acts is to generate a profit. To enjoy their ill-gotten gains, criminals commonly seek to disguise the illegal source of those profits. Money laundering is the processing of criminal profits to disguise their illegal origin.

Terrorist groups also move funds to disguise their source, purpose and destination. Terrorism financing includes the financing of terrorist acts, terrorists and terrorist organizations.

Both money laundering and terrorism financing are serious crimes.

What are the new laws?

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 requires those providing certain financial or gambling services, or those involved in bullion dealing, to:

• identify their customers before providing certain services
• report certain transactions, and
• report suspicious matters.

Why have the new laws been introduced?

The Australian Government has introduced the new anti-money laundering and counter-terrorism financing (AML/CTF) laws to:

• bring Australia’s AML/CTF system into line with international standards
• reduce the risk of Australian businesses being misused for the purpose of money laundering or terrorism financing, and
• meet the needs of law enforcement agencies for targeted information about possible criminal activity and terrorism.

Who will the new laws affect?

From 12 December 2007 the new laws may affect customers of a number of service providers, including:

• banks, credit unions, building societies, lending, leasing and hire purchase companies, stored value card issuers, issuers of traveler’s cheques, foreign exchange dealers, asset management companies, remittance dealers, financial planners who arrange for the issue of financial products, life insurers, superannuation funds, custodial service companies, cash couriers and securities dealers
• the gambling sector, including casinos, bookmakers, TABs, clubs and pubs, internet and electronic gaming service providers, and
• bullion dealers.

When might you be affected?

As a customer you will be affected in a range of circumstances, including:

• opening an account with a bank or other financial institution
• obtaining a loan
• buying traveler’s cheques
• sending, receiving or transferring funds electronically
• undertaking a gambling cash transaction of $10,000 or more
• buying or selling bullion, and
• withdrawing superannuation benefits.

What differences will you notice?

As a customer, the business you’re dealing with may need to verify your identity. The types of documents you might be asked to provide to verify your identity may vary for different transactions or services.

For example, where a business determines that the service or transaction represents a low risk of money laundering or terrorism financing, customers might only be required to produce a driver’s license. For other transactions or services you might be required to provide more information.

Identification documents that you could be asked to provide include:

• passport
• birth certificate
• driver’s license
• utilities statement, or
• a statement from a bank or other financial institution.

Businesses covered by the new laws are also required to have AML/CTF programs in place, which include ongoing monitoring of customer activity and the reporting of suspicious matters.

How will your privacy be protected?

Reporting entities and Australian Government agencies which collect personal information are subject to the Privacy Act 1988. The Privacy Act regulates the collection, use, disclosure, quality and security of personal information.

For more information on how your privacy will be protected, please contact the Office of the Privacy Commissioner on 1200 363 992 or visit www.privacy.gov.au/business/aml

For more information, you may call

the Customer Information Line on:

1800 021 037

www.ag.gov.au/aml