Anti-money laundering consultation delayed
The second consultation period on the Government’s anti-money laundering reform package has been delayed until mid-June to enable full consideration of the views of industry and a Senate Committee investigating the area.
The draft Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Bill was released, along with a set of sample AML/CTF Rules, in December 2005. The initial consultation period closed on April 13, 2006, with a second consultation period expected to open in late May.
Minister for Justice and Customs, Senator Chris Ellison said more than 120 submissions on the legislation had been received and the outcomes of a report from a Senate Committee inquiry into the draft bill also needed to be considered.
“While we are close to an agreed position, a small delay in releasing the revised Bill will help to ensure that we get the balance right,” he said.
“The Government has reviewed the recommendations of the Committee, along with submissions from industry, and is fine-tuning the Bill and Rules.”
Senator Ellison said he had been “impressed by industry’s willingness to work with the Government” on developing the legislation.
The proposed legislation was subject to some criticism in the submissions, with both the Financial Planning Association (FPA) and the Association of Superannuation Funds of Australia (ASFA) considering it to be too prescriptive.
Both organisations advocated a more risk-based approach that would allow entities to introduce their own policies and procedures in line with high level principles put in place by the Government, and would reduce the level action required on the part of planners for certain low risk client transactions.
Senator Ellison said during the next two weeks, he would be discussing the experiences of the US and UK in implementing anti-money laundering reforms and the results of these discussions would also inform the draft legislative package.
“I am confident that the second consultation period will enable us to produce a regime that is fair to legitimate business while fulfilling Australia’s law enforcement requirements and preserving privacy interests,” he said.
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