Anti-money laundering counter-terrorism financing update_ austrac’s 2017 focus and hot topics _ herbert smith freehills

We have created this list based on our experience dealing with the regulator, as well as conferences, seminars and online publications. Money laundering fraud Although AUSTRAC’s official agenda in 2017 is not clear, we suggest that entities looking at their AML/CTF compliance programs should consider how the following may fit in:

• Pending AML/CTF rule changes: AUSTRAC has announced proposed changes to the AML/CTF Rules. Penalty for money laundering uk AUSTRAC is seeking input from various stakeholders regarding the proposed approach to the restructure of the AML/CTF rules compilation and progressing deregulatory recommendations relevant to the AML/CTF Rules.

Laundering money through paypal The implementation of these recommendations will take a staged approach in conjunction with consultation with the Review by the Attorney-General’s Department. Money laundering high risk countries The overall goal of these changes will see the simplification of AML/CTF Rules while providing an opportunity for development without changes being made to the AML/CTF Act.

• Digital financial industry: There has been focus on online movement of money, with a particular emphasis on expanding legislation to include online gaming, online remitters and cryptocurrencies. Money laundering uk law AUSTRAC is conducting industry consultation regarding the New Payments Platform and Fintech. Money laundering cash AUSTRAC is particularly interested in phone payment systems (i.e. Atm money laundering Apple Pay) and how they might be used to launder money or finance terrorism using stolen phones. Money laundering explained The expansive growth of these digital platform services indicates there will need to be a new strategy to manage these new payment systems and Fintech in its current form. Money laundering regulations scotland AUSTRAC looks to be heading towards collaborative effort with the industry in order to improve information sharing. What is money laundering in hindi Additionally, with consistent innovations in the digital technology industry, the current regulatory framework could be viewed as obsolete if it does not addapt to these changes. Money laundering definition for dummies Therefore a legislative expansion to cover the field could be in store for the future.

• Stored value cards: Stored value cards are high on AUSTRAC’s priority list of potential changes. Money laundering courses Low value pre-paid money cards were used by Jihadists in the 2015 Paris attacks. Anit money laundering Consequently, AUSTRAC is revisiting the definition of stored value cards and the monetary thresholds for application of the AML/CTF regime to stored value cards.

• Gambling products/services: In consultation with industry, AUSTRAC seeks to expand the scope of gambling products included in the AML/CTF legislation. Stages of money laundering The current system leaves a gap in some smaller and often unnoticed areas. Money laundering form Poker machines, online gaming and gambling nights/fundraisers at sports clubs are some of these areas that AUSTRAC is seeking to cover. Banks and money laundering Heading towards 2017 AUSTRAC is likely to mandate a framework that looks at an overall risk assessment and the methods to improve internal controls in the gambling industry.

• Specific industry focus: AUSTRAC is currently conducting industry based ‘risk assessments’. Money laundering regulations when buying a house The assessment for the superannuation industry has just been released. India money laundering AUSTRAC is still in consultation with industry regarding the others, which will be released in the new year. Meaning of money laundering The addition of these risk focused assessments could provide insight into the nature of risk, vulnerabilities and consequences if left unchecked. Money laundering business This new strategy is seen as an ideal option for both AUSTRAC and the industry as it will allow for a more targeted approach to risk assessment, similar to the UK industry-based AML/CTF legislation.

• International engagement: AUSTRAC has just completed a Memorandum of Understanding ( MOU) with China regarding information sharing. Money laundering articles AUSTRAC anticipates that this will provide a significant amount of useful data. Money laundering florida AUSTRAC is currently working with a number of African countries and Indonesia to get their AML/CTF legislation to a level where they also can enter into a similar MOU. Anti money laundering process The cooperation between all countries is a stepping stone to a universal system of information sharing. International money laundering cases Given the current efforts of these international engagements we will see the support of a global network that aims to strengthen AML/CTF rules not only in Australia, but around the world.

In addition to our future predictions, we have noted some 2016 ‘hot topic’ issues in the AML/CTF space, which we anticipate AUSTRAC will continue to monitor in 2017 ‘Hot topic’ issues for current reporting entities:

• Terrorism financing: Ensuring that entities address both money laundering and terrorism financing risk. Money laundering regulations 2014 AUSTRAC recently released the Regional Terrorism Financing Risk Assessment, which contains useful information to assess jurisdictional risk. Money laundering act pdf This information is seen as a necessary component given that geographical borders, particularly between Australia and Southeast Asia have seen an increase of exploitation by extremists. Money laundering test The risk assessment adopted by AUSTRAC incorporates two risk methodologies that aims to help entities identify, analyse and mitigate potential issues when considering jurisdictional risk. Money laundering in banking This assessment method could see the development of new strategies in creating awareness for entities undertaking a risk assessment.

• Risk assessments: AUSTRAC is moving towards a specific and tailored risk assessment model that avoids generic ‘cookie-cutter’ documents, as they are not sufficient. Money laundering news today The aim of this is for entities to control their risk by creating a system of checks and balances. Eu money laundering This approach enables flexibility in the constantly changing business world and allows these entities to understand where they might be at risk when undertaking operations. Anti money laundering regulations The adaptive nature of this risk assessment may enable entities to consider risk that is often missed by the generic model. Fatf definition of money laundering Each industry brings with it unique challenges, therefore the adoption of this new dynamic approach could be used to bolster AML/CTF efforts.

• Bitcoin- The growing popularity of cryptocurrencies, such as Bitcoin has seen the market for purchasing goods online expand. Anti money laundering manual pdf Although the Bitcoin marketplace is hard to track, Bitcoin still has a front and back end (i.e. Failure to report money laundering where people are depositing money to buy Bitcoin, and converting Bitcoin back to currency). Money laundering simple meaning Detection of these online transfers of currency at the moment is difficult even though they cross paths with established banking channels. Money laundering dubai AUSTRAC is focussing on the ‘in and out’ channels for Bitcoin, which provides an indication of how they may regulate future cryptocurrencies. Money laundering what is it Similarly, the UK regulator is developing a ‘Know Your Customer’ regulatory framework towards digital currency with the emergence of Bitcoin. U s money laundering This push has been widely welcomed by business operators in the region in order to have an effective AML/CTF system. Illegal money laundering It should be noted outside of the UK that current EU member states do not have a universal system adopted towards digital currency. What does money laundering mean AUSTRAC could push to adopt a similar approach like the UK given the emergence of and popularity of cryptocurrency in Australia.

Overall, it looks like there are a few changes coming down the pipeline, particularly in the Fintech and digital currency space. Money laundering jobs We will continue to monitor this area, and provide further updates as they become available.