AUSTRAC can authorise an individual to be an ‘external auditor’ for the purposes of the AML/CTF Act and require a reporting entity to appoint an external auditor.
An external auditor carries out audits and prepares audit reports, in accordance with directions given by AUSTRAC in notices and remedial directions or as required in an enforceable undertaking.
Authorisation is undertaken by AUSTRAC on an as needs basis and only when AUSTRAC requires a reporting entity to appoint an external auditor.
In such cases, the reporting entity must provide AUSTRAC the following documents about the proposed external auditor/s:
- a capability statement, which will demonstrate whether the applicant possesses the relevant qualifications, experience and skills; and
- a signed Statutory Declaration to outline the character of the individual, declaring that the applicant will inform the AUSTRAC CEO as soon as practicable but no later than seven days after becoming aware of any conflict of interest that may arise; and
- a resume which provides an overview of the individual’s employment and education history, and any other information the individual considers is relevant to their application.
When required, AUSTRAC will provide these documents to the reporting entity.
These completed documents will be considered by AUSTRAC in making a decision whether or not to authorise an individual as an external auditor.
Authorisation will remain valid for the duration of the activity for which authorisation was provided, unless an external auditors’ authorisation is revoked by AUSTRAC.