Second Tranche of Reforms
Second Tranche of AML/CTF Reforms
In October 2005 the Government announced it would proceed with reforms to strengthen Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) system in two tranches.
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the AML/CTF Act) represents the first tranche of reforms, which covers the financial and gambling sectors.
The Government is now working on the second tranche of reforms. The aim of these reforms is to extend regulatory obligations to specified transactions conducted by a range of businesses and professions, including dealers in precious metals and stones, lawyers, accountants, real estate agents and trust and company service providers.
Draft legislative provisions which will amend the AML/CTF Act to implement the second tranche of reforms were publicly released in August 2007. These draft legislative provisions will amend section 6 of the AML/CTF Act to specify what new ‘designated services’ will trigger obligations under the AML/CTF Act.
The Department received a number of submissions from stakeholders in response to the draft legislative provisions.
These submissions can be viewed here. If you would prefer a hard copy of a submission please email aml.reform@ag.gov.au with your contact details and a copy will be posted as soon as possible.
Second tranche consultation process
The Government is committed to taking a highly consultative approach to developing the second tranche of AML/CTF reforms.
Representatives of peak industry bodies affected by the second tranche were involved in initial consultation throughout 2003 and 2004, including meetings of the Government’s AML/CTF Ministerial Advisory Group.
During March and April 2008, officers from the Attorney-General’s Department and AUSTRAC met with industry stakeholders to discuss the issues raised in submissions, and to commence discussions on what AML/CTF obligations will apply.
On 20 May 2008, the Minister for Home Affairs chaired a meeting of the AML/CTF Council to resume ministerial level consultation. The AML/CTF Council is comprised of representatives of industry groups affected by the new laws and was established in 2007 to advise the Government on AML/CTF reform.
The Attorney-General’s Department is currently reviewing the outcomes of these discussions and will continue to consult with industry bodies.
