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AML/CTF Amendment Bill 2024 -Towards a stronger AML/CTF regime
- Compliense Advisors
- Sep 29, 2024
- 19 min read
Updated: Dec 17, 2024
[The AML/CTF Amendment Bill has passed in the Parliament on 29/11/2024. Refer chronology, details and a summary of amendments to the Bill towards the end of this article]
[The AML/CTF Amendment Bill has received the Royal assent on 10/12/2024, and has thus become an Act (No 110 of 2024)]
Background
In a significant step, the Attorney General introduced the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Amendment Bill 2024 (Amendment Bill /Bill) into Parliament on 11 September 2024 to amend the AML/CTF Act 2006 (Act).
The Amendment Bill has come swiftly after the second consultation (which closed in June 2024), signifying the Government’s resolve to strengthen Australia’s AML/CTF regime and “minimise the risk of Australia being ‘grey listed’ by the Financial Action Task Force (FATF), which would result in significant economic and reputational costs.”
This article provides an overview of the key changes proposed in the AML/CTF Amendment Bill 2024.
Objectives of the Amendment Bill
The Bill will strengthen Australia’s AML/CTF regime in response to evolving global financial crime risks and to ensure the country meets its international obligations under FATF recommendations.
Once enacted, it will change the Australian AML/CTF landscape in a significant way. In the process, it will bolster the country’s defences against financial crime, modernising the regulatory regime, and bringing it into line with international standards set by FATF.
The Amendment Bill states following as its objectives:
1. Expansion of the AML/CTF regime to new higher-risk service providers: The Bill aims to plug a significant gap by extending the AML/CTF regime to cover Tranche 2 entities, including real estate professionals, lawyers, accountants, trust and company service providers, and dealers in precious stones and metals.
2. Improving the effectiveness of the AML/CTF regime: The Bill seeks to simplify and clarify the compliance obligations for businesses, making the regime more accessible and reducing the regulatory burden on businesses without compromising the effectiveness of AML/CTF measures.
3. Modernising the regime to reflect changes in business structures, technologies, and financial crime methodologies: As business models evolve and technological innovations, such as digital currencies, become more widespread, the AML/CTF framework must adapt to address new threats posed by these developments.
Key Changes Proposed in the Amendment Bill
a) Tranche 2 Entities
One of the most significant changes introduced by the Amendment Bill is including new businesses (Tranche 2 entities) in the scope of the AML/CTF regime to align with the FATF recommendations. These are businesses that provide higher-risk services but have not been previously subject to the AML/CTF obligations. The Tranche 2 entities are:
I. Real estate professionals: Real estate transactions have long been identified as a key avenue for laundering illicit funds. It is one of the most common property types restrained following investigations by the Australian Federal Police-led Criminal Assets Confiscation Taskforce, reflecting its popularity as an asset and the ease with which illicit funds can be laundered and/or invested in this sector.
The inclusion of real estate agents and other property professionals will help close this gap in the AML/CTF framework.
Services covered | Following will be considered designated services:
- Brokering the sale, purchase or transfer of real estate undertaken in the course of a business for a buyer, seller, transferor or transferee (the customer for designated services will be both the seller and the buyer). The wordings will also cover a buyer’s agent,
- Selling or transferring real estate in the course of carrying on business of selling real estate, where the sale or transfer is not brokered by an independent real estate agent. This service would capture property developers and other businesses who sell house and land packages, apartments off the plan, and blocks of vacant land in new subdivisions.
Keep in view that in both the above services a ‘transfer’ of real estate is also covered to include situations where a property is transferred for no value or consideration.
Services not covered | The services related to residential tenancies, property management and leasing of commercial real estate are intended to be out of the scope of the AML/CTF designated services.
Private sales of residential property (ie a property owner selling directly to a buyer, without engaging an agent) is also not intended to be covered.
Reliance on CDD by other reporting entities | To avoid duplication and reduce regulatory burden, a reporting entity will be able to take benefit under and subject to the conditions in sections 37A to 39 of relying on CDD undertaken by other reporting entities (eg., another agent in the chain, or a solicitor or conveyancer).
II. Professional Service Providers: Professional services providers including lawyers, accountants, and trust and company service providers (TCSPs) play crucial roles in facilitating complex financial transactions. While they provide legitimate services, there is a risk that their services can be abused by criminals to launder money or finance terrorism. The Amendment Bill will introduce AML/CTF obligations for these sectors, bringing them into line with the international standards.
Services covered | Following services, provided in the course of carrying on a business are covered:
- Assisting a person in the planning or execution of or acting on behalf of a person in a transaction for-
o buying, selling or transferring real estate
o buying, selling or transferring a body corporate or legal arrangement
- receiving, holding and controlling or managing a person’s money, accounts, securities, virtual assets or other property as part of assisting a person in the planning or execution of or acting on behalf of a person in a transaction (certain exemptions apply)
- Assisting a person in the organising, planning or execution of or acting on behalf of a person in a transaction for equity or debt financing relating to a body corporate or a legal arrangement
- Selling or transferring a shelf company
- Assisting a person to plan or execute or otherwise acting on behalf of the person in creation or restructuring of a body corporate or a legal arrangement
- Acting as or arranging another person to act as following on behalf of a nominator – director, secretary, power of attorney of a body corporate or legal arrangement, a partner in a partnership, a trustee of an express trust, a position in any other legal arrangement that is functionally equivalent to these positions, except in certain cases (acting in a fiduciary capacity pursuant to a court / tribunal order; acting as trustee of a regulated debtor’s estate; any other specified circumstance) (certain exemptions apply)
- Acting as or arranging a nominee shareholder
- Providing a registered office address.
What is ‘legal arrangement’ | A legal arrangement refers to an express trust, a partnership, a joint venture, an unincorporated association or an arrangement including a foreign arrangement such as a fiducie, treuhand or fideicomiso, similar to any of the other referenced arrangements.
Concept of Professional Service Providers | It is important to note that the concept is not tied to a particular profession(s), but it is rather to a range of services that are considered as designated services. Any professional service provider offering these services will be considered providing designated services and hence covered under the AML/CTF regime.
Hence, while lawyers, accountants and TCSPs may predominantly provide the above services, but other professionals offering such designated services will also be caught in the new regime – such as conveyancers, consultants, insolvency and restructuring practitioners, financial planners, wealth advisors, business brokers, etc. Collectively this group is referred to as professional service providers for the purposes of the AML/CTF regime.
Legal privilege for the legal profession | In the context of the legal profession, provisions have been included to respect legal privilege. The policy intent is that the AML/CTF Act would not require the disclosure of information or a document as part of any reporting and information disclosure obligations where the reporting entity or notice recipient reasonably believes that the information or document is subject to legal professional privilege.
III. Dealers in precious stones and metals: High-value commodities such as gold and diamonds are attractive to money launderers due to their portability and value. The Amendment Bill requires dealers in these commodities to implement an AML/CTF compliance framework and comply with the relevant obligations.
What is covered | The Bill covers the following items under this category:
- Precious metals – gold, silver, platinum, iridium, osmium, palladium, rhodium, ruthenium or any substance with at least 2 per cent weight of any of the aforementioned substances.
- Precious stones – substances that have a gem quality; and have market recognised beauty, rarity and value. This includes beryl, corundum, diamond, garnet, jadeite jade, opal, pearl, topaz, and other items described in the AML/CTF Rules.
- Precious products – items such as jewellery, watches, personal adornments that are made up of or contain or having attached to them any precious metal and / or precious stone. Precious products also include articles of goldsmiths’ or silversmiths’ wares such as ornaments and tableware.
In-scope transaction limits | The transactions in precious metal, precious stones and precious products (not being buying or selling bullion in the course of carrying on bullion dealing business) will be a designated service, if such items are purchased in cash and / or in virtual asset (eg: by paying with bitcoin), with a total value of not less than $10,000 (either in a single transaction, or in several linked transactions with a total value not less than $10,000).
Bullion dealers | It must be noted that the services relating to bullion dealers are a separate category of designated services (already existing in the Act) and are not covered under the new services relating to precious stones / metals / products.
IV. Deferred compliance obligations for Tranche 2 entities
i. Obligations regarding the following will not apply to Tranche 2 entities until 1 July 2026-
o Setting up AML/CTF programs (which also includes risk assessments)
o Undertaking customer due diligence
o Reporting obligations for suspicious matter reporting, threshold transactions, international funds transfer instructions, and annual compliance reports
o Record keeping.
ii. Deferred time limit for enrolment with AUSTRAC -
Usually, a new business must enrol with AUSTRAC within 28 days of commencing to provide designated services. However, for the newly included Tranche 2 entities, they must enrol with AUSTRAC no later than 29 July 2026 if the reporting entity provides, or commences to provide, designated services at any time before 1 July 2026.
This means a Tranche 2 entity that was providing designated services as on the date of the Bill comes into force will have time extra time to apply for AUSTRAC enrolment by 29 July 2026.
b) Risk assessment
This will be another area of significant change for the reporting entities. The updated provisions will make undertaking risk assessments an explicit obligation. The new provisions will also impact a reporting entity’s risk assessment methodology, frequency, and governance.
A reporting entity cannot provide designated services without the relevant risk assessment. If there is any change in its designated services, it must review its risk assessment and update before any such changed services are provided.
As a new requirement, the risk assessment must also identify and assess risks related to proliferation financing. This is an important change, as it brings sanctions into the fold of AML legislation, and broadens the scope of risk assessment.
In brief, proliferation financing relates to conduct that breaches counter proliferation provisions under the Australian Charter of the UN Act or Australian Autonomous Sanctions in relation to weapons of mass destruction.
The proliferation financing risk assessment has further flow-on effects on the reporting entity’s AML/CTF Policies (discussed below). Unless the proliferation financing risks assessed by the reporting entity are rated low and can be appropriately managed by the reporting entity’s AML/CTF Policies, the reporting entity must develop or maintain specific AML/CTF Policies to mitigate and manage proliferation financing risks.
As is the principle, the risk assessment must be appropriate to the nature, size and complexity of the reporting entity’s business, thus ensuring that the assessments are proportionate to the risks faced.
The reporting entity must review its risk assessment for any new or changed money laundering, terrorist financing, and proliferation financing risks, or if there is a significant change to its designated services, products, customers, geography or technologies. Where such changes are within the control of the reporting entity (for example, if the business is expanding to new geography, or launching a new technology), the risk assessment must be updated before the change occurs.
In any event, the risk assessment must be reviewed every three years and updated.
While undertaking a risk assessment, the reporting entity must also consider AUSTRAC National Risk Assessments and sectoral risk assessments, which should be incorporated into the reporting entity’s risk assessment as relevant.
c) AML/CTF Programmes and AML/CTF Policies
The Amendment Bill introduces changes to the structure and content of AML/CTF programmes and policies. These two concepts broadly form the foundation of a reporting entity’s AML/CTF compliance framework and set out the procedures and controls that the reporting entity must implement to manage and mitigate the risks of money laundering, terrorist financing, and proliferation financing.
The current obligation for AML/CTF programs to be structured in Part A and Part B, and the concepts of the Standard, Joint and Special AML/CTF programs will be removed.
According to the Bill, the reporting entities must have an AML/CTF Program. It comprises the reporting entity’s money laundering/ terrorist financing risk assessment and its AML/CTF Policies.
The new AML/CTF Program must be appropriate to the nature, size and complexity of the reporting entity or reporting group. They must be outcomes-focused, meaning that the reporting entities must achieve specific compliance outcomes, namely manage and mitigate the ML/TF risks, and the compliance framework must ensure compliance with the regulatory obligations.
The AML/CTF Policies are a suite of reporting entity’s policies, procedures, systems and controls to manage and mitigate money laundering, terrorist financing and proliferation financing risks; and should ensure its AML/CTF framework is geared towards achieving compliance with regulatory obligations.
The AML/CTF Policies must also include a range of matters and methodologies, like how an reporting entity will identify significant changes to trigger a review of its ML/TF risk assessment, conducting CDD, and mechanism to review and update AML/CTF Policies when required.
The Policies should also articulate matters like informing the reporting entity’s governing body of the ML/TF/PF risks; designating an AML/CTF compliance officer; designating a senior manager for approving the policies, risk assessments and changes in them; staff due diligence; staff training and awareness; and an independent review of its Program at least once every three years.
In the case of a reporting group (discussed below), matters related to information sharing and discharging obligations between the Group entities must also be part of the Policies.
The Policies must be reviewed at trigger events as outlined in the AML/CTF Rules (Rules), and in any event, every three years.
d) Reporting Group (replacing Designated Business Group concept)
The Amendment Bill replaces the existing Designated Business Group (DBG) framework with a simpler concept of a reporting group.
It is a more flexible and cohesive approach for related entities to fulfill their AML/CTF obligations as a group.
A reporting group will consist of at least one entity providing designated services, with a lead entity responsible for implementing a group-wide AML/CTF programme and ensuring compliance across all entities within the reporting group. The lead entity will also be responsible for developing ML/TF risk assessment methodology for the reporting group.
The reporting group framework allows for non-reporting entities (entities not directly regulated by the AML/CTF regime) to participate in fulfilling the AML/CTF obligations of the reporting entities within the group.
e) AML Compliance Officer (AMLCO)
Reporting entities must designate an individual as an AMLCO. The individual need not necessarily be an employee, but can also be an external appointee. The AMLCO must be at the management level, and must also pass the ‘fit and proper’ test prescribed by the Rules.
The AMLCO is responsible for overseeing the implementation of the AML/CTF programme and ensuring the entity’s compliance with the regulatory framework.
While we will await the Rules for the "fit and proper" requirements, it is generally to assess that the individual has the qualifications, skills, experience, and integrity to perform the role effectively. This may further include assessments related to the person’s ability, past compliance performance, and any sanctions or adverse findings against them.
f) Governing Body
The AML/CTF Program will no longer need the approval of the reporting entity’s governing body (unlike the current requirement of Board approval for Part A AML program). The governing body can authorise a Senior Manager to approve these.
The governing body has an obligation to exercise ongoing oversight over the ML/TF risk assessment and compliance with the AML/CTF policies and regulatory obligations.
It should take steps to ensure that the reporting entity is appropriately identifying, assessing and mitigating the money laundering, terrorist financing and proliferation financing risks; and complying with its AML/CTF policies and regulatory obligations.
g) Customer Due Diligence (CDD)
The Amendment Bill introduces extensive updates to the Customer Due Diligence (CDD) requirements, which are fundamental to identifying and managing the ML/TF risks associated with customers. CDD is required both at the initial stages of a customer relationship and on an ongoing basis. The key updates include:
· Initial CDD: reporting entities must undertake CDD before providing designated services to a customer. This includes taking reasonable steps to establish the customer’s identity, collecting and verifying KYC (Know Your Customer) information, and assessing the customer’s ML/TF risk profile. reporting entities must also identify and verify the beneficial owners of their customers, particularly in cases involving corporate structures or trusts.
· Ongoing CDD: In addition to initial CDD, reporting entities must monitor customer activity and reassess the customer’s ML/TF risk profile on an ongoing basis. This ensures that any changes in the customer’s behaviour or circumstances are identified and appropriate actions taken.
· Enhanced CDD: In certain high-risk situations, such as dealing with politically exposed persons (PEPs), or in transactions involving high-risk jurisdictions, reporting entities must conduct enhanced CDD. This involves more stringent verification processes, closer scrutiny of customer activities, and enhanced monitoring of transactions.
· Simplified CDD: In cases where the customer poses a low ML/TF risk, reporting entities may apply simplified CDD, which allows for reduced verification requirements. However, simplified CDD is only permissible in certain predefined circumstances, as outlined by the Amendment Bill and accompanying rules.
h) AML/ CTF program and Item 54 Providers
Australian Financial Services License (AFSL) holders providing only designated services covered by Table 1 item 54 (e.g.: financial planners) in Section 6 of the Act will continue to retain their earlier exemption. They will be required only to undertake an ML/TF risk assessment and have AML/CTF Policies providing conducting initial CDD.
i) Clarifying ‘Bearer Negotiable Instruments’ (BNI)
The AML/CTF legislation requires cross border movement of monetary instruments to be reportable to AUSTRAC. A monetary instrument is defined to include a BNI.
Regarding BNI, the Bill aims to align with the FATF recommendations, capturing only an instrument which is ‘payable to bearer’. The cross-border reporting requirement thus will not cover an instrument that are ‘non-bearer’ or ‘non-negotiable’.
j) Independent Review
The Amendment Bill mandates that the AML/CTF policies must prescribe that Reporting Entitles undertake independent review of their AML/CTF program. The Policies must prescribe the frequency of such review, which must be at least once every three years. This contrasts with the current norm of independent review of Part A, and further does not spell any specific frequency or timing requirement, though 2-3 years is generally considered a good practice.
It is essential for a reporting entity to assess in the new scheme of things what will be the appropriate frequency for independent reviews, considering the nature, size, and complexity of the business and operations and the nature of risks it faces.
k) Changes to Tipping-Off Provisions
The revised tipping-off offence provisions will focus on preventing the disclosure of suspicious matter report (SMR) information or information related to a notice issued under section 49 (regarding an SMR, threshold transaction report (TTR), or proposed report of international value transfer services / report of transfer of value involving unverified self hosted virtual asset wallets) or proposed section 49B (seeking information by AUSTRAC that could support its efforts to combat ML/TF/PF) of the AML/CTF Act where such disclosure would or could reasonably prejudice an investigation.
The new offence framework will therefore be more flexible for reporting entities seeking to share information for legitimate purposes, including within the reporting groups to manage risk and prevent further crime.
It needs to be kept in mind that the wordings ‘would or could reasonably be expected to prejudice’ in the new provisions is intended to capture both intentional and reckless disclosures. Therefore, the AML/CTF policies of the entity must ensure developing, implementing or maintaining appropriate framework to prevent tipping off when sharing within a reporting group. The tipping off offence now also includes tipping off not only by a reporting entity, but also by its or its reporting group member's employee, officer, agent, and a member of reporting group.
The Bill provides exception for tipping off offence in regards to disclosure made to another reporting entity to detect, deter or disrupt ML/TF/PF or other serious crimes, and any prescribed conditions in the regulations are met. The earlier exception in regards to the disclosure to a reporting entity that is a legal practitioner, accountant, or specified person continues, but with expanded scope - the disclosure is in good faith for dissuading the customer from committing an offence against a law.
To ensure adequate awareness and understanding by staff, the Amendment Bill reinforces the need for staff training to address tipping-off risks, particularly in high-risk sectors or industries.
l) Services relating to virtual assets
The Bill extends the AML/CTF regime to additional activities and services in the realm of virtual assets.
The Act will replace the existing term ‘digital currency’ with ‘virtual assets’, thereby bringing expanded scope of activities of ‘virtual assets service providers’ (VASP) within the AML/CTF regime. This will help to appropriately address the sector’s risks and align activities with FATF recommendations.
Virtual Assets (VA) | Virtual assets are a digital representation of value that -
- functions as a medium of exchange, a store of economic value, unit of account or an investment; or
- enables a person to vote on the management, administration or governance of arrangements connected with a digital representation of value; and
is not issued by or under the authority of a government body; and can be transferred, stored or traded electronically.
The expanded definition brings concepts like non-fungible tokens (NFTs) and governance tokens within the scope of the AML/CTF regime.
Safekeeping Services | The Bill further brings the virtual asset safekeeping services within the fold of the AML/CTF regime, covering the services provided by a person related to the safekeeping and administration of virtual assets or instruments enabling control over virtual assets. These services are provided in the course of carrying on a business as a VASP.
VA Service providers | In keeping with the new labels, the existing terminology of ‘registered digital currency exchanges’ will be re-labeled as ‘registered virtual assets service providers’. Importantly the in-scope activities will be expanded to also include transactions where one virtual asset is exchanged or traded for another. This will be in addition to the existing designated services for exchanging a virtual asset for money, or vice versa.
The Act will also regulate businesses providing financial services ancillary to initial coin offerings and other situations in which an issuer offers or sells a virtual asset as designated services.
Thus, entities offering any registrable virtual asset services will be required to register with AUSTRAC, except where they are financial institutions (such as an ADI, a building society or a credit union) or casinos.
Emerging Technologies | The Bill provides flexibility for the AML/CTF regime to respond to emerging technologies that are susceptible to money laundering, terrorism financing or proliferation financing exploitation. It empowers AUSTRAC CEO to make AML/CTF Rules that account for any emerging virtual assets.
m) Transfers of Value and International Value Transfer Services
The amendments proposed by the Bill will replace the previous funds transfer chain concept with an updated and simplified value transfer chain. According to the Explanatory Statement to the Bill, streamlining value transfer chains would reduce undue regulatory burdens on the industry.
The value transfer chain concept will provide a framework for key AML/CTF reporting obligations for certain entities that transfer value on behalf of customers, including the travel rule and IFTI/international value transfer service reporting obligations.
When the above provisions become effective
The provisions above become effective in March and July 2026. Tranche 2 entities have additional compliance time as indicated in item a) above. This is ofcourse subject to any change in the dates in the final Bill as passed.
PS added 17 Dec 2024: Refer the 'Update - 29 Nov 2024' below for changes to the effective date for amended offence of tipping off brought forward to March 2025.
Conclusion
The AML/CTF Amendment Bill 2024 marks a significant step forward in Australia’s efforts to combat money laundering, terrorism financing, and proliferation financing. By expanding the scope of the AML/CTF regime to include Tranche 2 entities, enhancing risk assessment requirements, modernising customer due diligence processes, and strengthening governance and oversight mechanisms, the Amendment Bill ensures that Australia remains at the forefront of global efforts to prevent financial crime.
Businesses across all affected sectors must begin preparing for these changes well ahead of the Amendment Bill’s implementation in 2026. This includes reviewing existing AML/CTF programmes, conducting comprehensive risk assessments, and ensuring that senior management and staff are fully trained and equipped to meet the new compliance obligations.
Businesses also will need to assess if they should invest in new technologies or upgrade their existing systems, to implement robust systems for CDD, transaction monitoring, screening and reporting.
AUSTRAC is expected to release guidance to help businesses understand their obligations. This will be particularly critical for Tranche 2 entities, who will be new to the AML/CTF regulations.
It is also to be kept in view that the provisions of the Bill as introduced in the Parliament may undergo changes before they are finally passed.
29 September 2024
Resources:
- Note on introduction of the Bill, by Attorney General – click here
- Note on introduction of the Bill, by AUSTRAC – click here
- AML/CTF Bill 2024 introduced in the Parliament – click here.
Articles on our website - Tranche 2 entities may find our following articles useful for further information and insights:
- AUSTRAC National Risk Assessment – click here
- Generally understanding an AUSTRAC compliance report (the article is in the context of compliance report 2023) – click here
- Designated services by a new business – click here
- Penalties - failing to enrol with AUSTRAC – click here
- Thematic Sanctions – click here
- Common abbreviations in AML, FinCrime compliance – click here.
Post Script:
A slightly different version of this article was published in the Stockbrokers & Investment Advisors Association's SIAA Monthly (October 2024).
Update - 10 October 2024
The AML/CTF Bill has progressed through the House of Representatives, and is now before the Senate.
Read the Bill Digest here.
Update - 29 November 2024
As of 29 November 2024, the AML/CTF Bill has passed in the Parliament, and will be enacted once it receives the Royal Assent.
More details:
As previously updated above, following the presenting of the Bill to the Senate, the Bill was considered by the Senate Standing Committee for the Scrutiny of Bills - read Scrutiny Digest here. (18/09/2024)
The Bill was also considered by the Senate Legal and Constitutional Affairs Legislation Committee, and submitted its report - read here. (13/11/2024)
Thereafter, following a last minute push by the Government - before the Senate going into recess for holiday season - the AML/CTF Bill was passed in the Senate on 28 November 2024. Certain amendments to the Bill were adopted, introduced by the Government. Refer amendments here.
The amended Bill was before the House of Representatives for the final approval. It was passed in the House of Representatives today (29 November 2024). The Bill now awaits Royal Assent.
Amendments to the Bill
The amendments to the Bill, made while passing in the Senate, brought quite a few relaxations, particularly for tranche 2 entities:
o The definition of real estate had excluded leases of 20 years or less in the Bill. This has been modified to 30 years. Thus, such real estate transactions will out of the scope of the real estate related designated services.
o Services provided by a Barrister on the instructions of a Solicitor will not be designated services, where such instructions are given in connection with the provision of a designated service.
o In regards to the Professional Services (covered by items 1 and 2 in the new Table 6) to assist a person in the planning / execution of a transaction to sell, buy, or transfer real estate, a body corporate or legal arrangement, a transaction made pursuant to a court / tribunal’s order will be out of the scope of such designated services.
o for a RE providing only item 54 services – updates to its risk assessment need not be notified to its governing body. However, we believe it will still be a good practice for significant changes to be notified to the RE’s Board.
As part of amendments, there is now a mandate that a RE should not provide designated services, until it has AML/CTF policies in place. This will also be a civil penalty offence. This will be relevant for both existing and new REs. Note that 'AML/CTF policies' is quite wide and covers every element of policy, procedures, systems etc for AML/CTF compliance.
The changes also bring forward the effective date for the amended offence of tipping off in Sch 5 of the Bill to 31 March 2025.
Resources:
- Final version of the AML/CTF Amendment Bill, as passed by both the Houses - click here.
Update - 17 December 2024
The AML/CTF Amendment Bill has received the Royal Assent on 10 December 2024. This means that the Amendment Bill has become an Act (No 110 of 2024), and is in force.
However, do note that while the Amendment Act has come into force, the changes made to the AML/CTF Act will come into force as per the effective dates mentioned in the article above.
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