Steps to prepare for AML/CTF reforms

Start with some background

• AUSTRAC’s background guidance, ‘About the reforms’
• Law Society’s Anti-money laundering and counter-terrorism financing reforms – FAQs

Determine whether your practice may be captured

• Check if you may be regulated
• Review section 6(5B), Table 6 of the AML/CTF Act Future Law Compilation of the AML/CTF Act | AUSTRAC
• Refer to AUSTRAC’s guidance for professional services

Understand your obligations

• Familiarise yourself with the key AML/CTF obligations and review AUSTRAC’s summary of obligations
  
• Learn about money laundering, terrorism financing and proliferation financing including risks
• Consider the National Risk assessment 2024 on money laundering, terrorism financing 2024 and proliferation financing
• Start familiarising yourself with AUSTRAC’s compliance core guidance (designed to be read in bite sized chunks)
  

Review your business operations

• Review your business structure, your services, and client base to work out which services may be captured as designated services, which will help you identify where AML/CTF risks may arise.
  
• To do this, it may be helpful to review the last six months of your practice’s activity to consider the following questions:
• Who are your clients? (e.g. are they individuals or businesses? Are they located in Australia or overseas?)
• What services do you provide? (e.g. What kinds of designated services do you provide? Does only part of your practice involve such services?)
• Where do you deliver your services? (Which jurisdictions do you deal with when providing your services? Are any of those jurisdictions considered by AUSTRAC to be high risk?)
• How do you deliver your services? Do you deliver your services online, face-to-face or hybrid?

Review your existing policies and procedures

• Consider existing policies that may be relevant to, and hence assist with, AML/CTF compliance, including client onboarding, conflicts, supervision, personnel due diligence, and recording keeping.
• In particular, you may wish to review AUSTRAC’s guidance on record keeping, as it includes examples of what type of records would be useful to demonstrate compliance.

Engage early with AUSTRAC and the NSW Law Society

• Subscribe to AUSTRAC’s updates on AML/CTF
• Frequent the Law Society of NSW’s AML/CTF Hub

Assign roles and accountability

• Appoint an AML/CTF Compliance Officer
• Consider how AML/CTF responsibilities will be governed in your practice

Complete complimentary AML/CTF Training and/or AUSTRAC webinars

• Consider what information AUSTRAC expects different persons within your practice to know.