Law

We provide review/audit & consulting services to support Legal and Conveyancing companies in complying with their AML/CTF obligations.

Inherent Risk

Both domestic and international evidence and guidance highlight the ML/TF risks presented by the legal sector. The easy access and wide geographic spread of legal services, coupled with lawyers’ gatekeeper role and use in every phase of ML/TF and in many different ML/TF typologies, means this sector presents a medium-high inherent risk of ML/TF.

Captured Activities

Acting as a formation agent for legal persons or legal arrangements. Acting as, or arranging someone to act as, a nominee director, nominee shareholder or trustee. Providing an office or address for a company or legal arrangement. Managing client funds, accounts, securities, or other assets. Providing real estate agency work to effect a transaction. Engaging in or giving instructions on behalf of a customer to another person for a range of specified services.

How We Can Help

We’ve enabled over 1000+ reporting entities with their AML/CTF obligations. Get in touch with one of our qualified specialists today.

We’re proud to assist small to enterprise-scale businesses across all sectors

FAQs

Where can I find more information to help my business comply with Tranche 2?

To better understand and fulfil your obligations under Tranche 2, you can refer to official guidance from AUSTRAC, engage in industry-specific training, and seek advice from legal or financial professionals with expertise in AML/CTF compliance.

One AML can also help you understand and meet your AML/CFT obligations. We provide robust, cost-effective, and seamless solutions. Get in touch with us today.

Are there any opportunities for my business in adhering to Tranche 2 AML laws?

There are opportunities for your business to showcase its commitment to compliance and ethical practices. By diligently following the regulations, you can enhance your reputation as a trustworthy partner for your clients, reducing the risks associated with money laundering and terrorist financing activities.

What are the potential challenges for my business in complying with Tranche 2?

Complying with Tranche 2 may involve an increased administrative workload, longer transaction times, and the need for additional resources, such as training and software. However, failure to comply with the new regulations could result in legal or reputational risks for your business.

What changes will Tranche 2 bring for lawyers and conveyancers?

Lawyers and conveyancers will need to play a more active role in identifying and preventing money laundering and terrorist financing. You will have to conduct comprehensive client due diligence, particularly for high-value transactions, and report any suspicious activities to AUSTRAC.

What are the key obligations my business must adhere to under Tranche 2?

As a reporting entity, your business will be required to implement risk management programmes to identify and mitigate potential money laundering and terrorist financing risks. This includes conducting customer due diligence (CDD) on clients, monitoring transactions and client behaviour for suspicious activities, and reporting any suspicious matters to AUSTRAC.

When will Tranche 2 come into effect?

The first round of public consultation on proposed reforms to Australia’s AML/CTF regime closed in June 2023. A second round of consultation will be opened in September 2023, and it is likely to include draft legislation. It will likely include a 12 or 18-month transition period in its Tranche 2 Bill. This would allow Australia to have laws in place before the Financial Action Task Force (FATF)‘s fifth-round mutual evaluation visit, expected in 2026.

What is the AML CTF regime?

The AML/CTF regime is central to Australia's efforts to prevent criminals from profiting from their unlawful activity and to prevent funds from reaching terrorist organisations.

What is the AML CTF reform in Australia?

The Attorney-General has announced a public consultation regarding proposed anti-money laundering and counter-terrorism financing (AML/CTF) regime reforms in Australia. The objective of the proposed reforms is to ensure that the regime conforms to international standards. industry can enhance their understanding of their obligations and compliance.

What is the tranche 2 legislation?

Since 2007, Tranche 2 of the legislation has been under consideration, which would expand the entities required to comply with AML/CTF obligations to include real estate agents, lawyers, book-keepers, accountants, and trust/company service providers (also known as gatekeepers).

What is Tranche 2 of Australia's AML and CTF regime, and how does it impact my business?

Tranche 2 refers to the second phase of Australia’s anti-money laundering (AML) and counter-terrorism financing (CTF) laws. It extends the scope of regulated entities to include businesses such as lawyers, conveyancers, real estate agents, and accountants. This means affected professional service providers will now be considered ‘reporting entities and must comply with AML/CTF obligations to deter money laundering and terrorist financing.

Who is Australia's regulator for AML CFT?

AUSTRAC, Australia's AML/CTF regulator, oversees over 17,000 individuals, enterprises, and organisations. We ensure compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act of 2006 and the Financial Transaction Reports Act of 1988.

What is AML/CTF?

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006  (AML/CTF Act) place responsibilities on Australian entities that provide any designated services listed under section 6 of the AML/CTF Act. These entities generally provide financial, gambling, bullion or digital currency exchange services to detect and deter money laundering and terrorism financing. The Act ensures that businesses take appropriate and efficient steps to ensure that their clients are not money laundering and terrorism financing while contributing to public confidence in the Australian financial system.

What is an independent AML/CTF review or audit?

The AML/CTF Act requires Reporting Entities to have an independent review of their Risk Assessment, AML/CTF Programs and processes. This must be conducted by an appropriately qualified and independent person. If you need assistance with an independent AML/CTF Review please contact us.

What is a ML/TF risk assessment?

A Risk Assessment is a Reporting Entity’s foundational document which assesses the risks and vulnerabilities of being exposed to money laundering or terrorist financing.

What is a Compliance Program(s)?

A Reporting Entity’s Programs must be based on the risks assessed in its Risk Assessment and must set out internal policies, procedures and controls which will manage and mitigate money laundering and terrorist financing. There are three types of AML/CTF Programs:

  • Standard program – applies to individual reporting entities;
  • Joint program – applies to reporting entities that are members of a “designated business group”; and
  • Special program – applies only to holders of an Australian Financial Services License (AFSL) offering a particular kind of designated service.

AML/CTF Programs have two key parts:

  • Part A, relating to the identification, management and reduction of the risk of ML/TF (not required for a special program); and
  • Part B, relating to customer identification and verification procedures i.e KYC.
How often should independent reviews be done?

You must decide how often reviews are done. How you decide depends on:

• The size of your business or organisation.
• What kind of business or organisation you have.
• How complex your business or organisation is.
• Your level of money laundering/terrorism financing risk.

High-risk organisations should have independent reviews done at least every two to three years.

What is the AML/CTF Act?

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) place responsibilities on Australian entities that provide any designated services listed under section 6 of the AML/CTF Act. These entities generally provide financial, gambling, bullion or digital currency exchange services to detect and deter money laundering and terrorism financing. The Act ensures that businesses take appropriate and efficient steps to ensure that their clients are not money laundering and terrorism financing while contributing to public confidence in the Australian financial system.

What are the AML/CTF Rules?

The AML/CTF Rules are subsidiary legislative instruments made under the AML/CTF Act. The AML/CTF Rules provide the detail for the broader obligations set out in the AML/CTF Act. Their official title is the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1).

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