- What is an AML/CTF compliance report?
- Who must submit an AML/CTF compliance report?
- What information must be reported in an AML/CTF compliance report?
- When are AML/CTF compliance reports due?
- What are the AML/CTF compliance reporting obligations for DBG members?
- Does a reporting entity that ceased providing designated services during the reporting year need to submit an AML/CTF compliance report for that year?
- What are the penalties for failing to submit an AML/CTF compliance report?
- Additional information
AML/CTF compliance reports provide AUSTRAC with information about a reporting entity's compliance with the AML/CTF Act, Regulations and Rules. Under Chapter 11 of the AML/CTF Rules, reporting entities must submit regular AML/CTF compliance reports (usually annually).
All reporting entities must submit AML/CTF compliance reports to AUSTRAC, unless they are covered by an exemption. Exemptions apply to:
- reporting entities holding an Australian financial services licence that only provide the designated service in item 54 (table 1, section 6 the AML/CTF Act)
- venues that are licensed to have up to 15 electronic gaming machines.
Exemptions from the AML/CTF compliance reporting obligations may also be provided to classes of reporting entities for a particular reporting period in the AML/CTF Rules. See Chapter 9 - Exemptions from obligations under the AML/CTF Act for more information.
AML/CTF compliance reports collect information about the appropriateness of a reporting entity's ML/TF risk assessments and the effectiveness of its AML/CTF program. Typically a compliance report includes information about an entity's AML/CTF programs, its customer identification procedures and reporting obligations. Unless otherwise specified in the AML/CTF Rules, the AML/CTF compliance report generally covers the previous calendar year.
Generally, compliance reports are due annually as specified in the AML/CTF Rules (Chapter 11). AUSTRAC informs reporting entities about the due date for compliance reporting on the AUSTRAC website.
Subsections 47(6) and 47(7) of the AML/CTF Act allow one member of a designated business group (DBG) to lodge an AML/CTF compliance report on behalf of all of the reporting entities within that DBG. For further information on DBGs (including the definition) see Chapter 3 - Designated business groups.
Does a reporting entity that ceased providing designated services during the reporting year need to submit an AML/CTF compliance report for that year?
Yes. If a reporting entity provides a designated service at any time during the year, it must lodge a compliance report for that year (even if it ceased operation at some point during that year).
If a reporting entity lodges an AML/CTF compliance report after the reporting period or fails to submit a report, they may be targeted by AUSTRAC for closer supervisory attention. AUSTRAC can also apply for a civil penalty order of up to 100,000 penalty units for a body corporate, and up to 20,000 penalty units for a person other than a body corporate.