Reforming Australia's AML-CTF Regime

In this paper we explore the reforms that we expect to be of most importance to financial institutions. These include:

• the redesign of the legislative framework around risk assessments and AML/CTF Programs;
• the re-write of customer due diligence (CDD) requirements, including the introduction of a specific obligation to undertake customer by customer risk assessments before providing any designated service;
• introducing the concept of a 'value transfer service' to replace the concepts of 'electronic funds transfer instruction' and 'designated remittance arrangement,' and extending the concept of 'value' to include 'digital assets' (not just money and property);
• extending the travel rule, including so that it applies to all entities in the 'value transfer chain' and also imposes obligations on remittance service providers and digital asset service providers;
• streamlining the international funds transfer instruction (IFTI) reporting requirements;
• reforming the tipping off offence and the exemption mechanism that applies for supporting law enforcement with investigations of serious offences; and
• updating the definition of bearer negotiable instruments.