Australia: Opened consultation on AUSTRAC AML/CTF Anti-Money Laundering and Counter-Terrorism Financing rules

On 11 December 2024, the Australian Transaction Reports and Analysis Centre (AUSTRAC) opened a public consultation on the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Rules, until 14 February 2025. The rules are aimed at strengthening Australia’s anti-money laundering and counter-terrorism financing framework. The rules apply to high-risk service providers, including financial institutions and virtual asset services. It imposes obligations such as independent evaluations of AML/CTF programs, enhanced customer due diligence (CDD) for high-risk individuals, compliance with the 'travel rule' for virtual asset transfers, and the introduction of 'reporting groups' for better risk management. Entities must designate a fit and proper AML/CTF compliance officer and implement ongoing transaction monitoring. The rules also allow flexibility for smaller businesses, with provisions for delayed CDD verification and updates to the ‘keep open notice’ framework. The consultation seeks feedback on businesses' risk mitigation, reporting, and CDD in AML/CTF, addressing concerns like compatibility with existing risk management, scalability, flexibility, and effectiveness of reporting group structures. It also covers practical challenges in CDD, compliance report timing, value transfer processes, and the adequacy of information in keep open notices.