ABA WELCOMES EXPOSURE DRAFT ANTI-MONEY LAUNDERING
AND COUNTER-TERRORIST FINANCING LEGISLATION

Sydney, 16 December, 2005: The Australian Bankers’ Association (ABA) welcomes the exposure draft Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) exposure draft legislation.

David Bell, Chief Executive of the ABA, said: “Our view is that the exposure draft legislation appears to be consistent with the detailed agreements arrived at during the roundtable meetings in July through September. The banking sector is pleased that the Federal Government is taking a risk-based approach that has the objective of avoiding unnecessary compliance costs.”

“Along with the Minister for Justice and Customs, Senator Chris Ellison, the ABA co-chaired the financial services industry roundtables, which were a very useful tool to exchange views and information on Australia’s implementation of the international standards known as the Financial Action Task Force (FATF) Recommendations.”

“The ABA and industry representatives from across the sector will examine the detail and provide more considered views to the Federal Government, continuing the close consultation which has occurred during the development of the draft legislation.”

Senator Ellison has today announced that as part of the AML/CTF project, further Rules will be developed which will implement the objectives of the Bill.

The ABA looks forward to consulting on the transitional arrangements on the commencement of the new regime.

Mr Bell said: “It is important to gain an understanding of the time frames in which the industry will be required to be compliant.”

“Banks and other financial service providers are used to working within an AML regime, but the proposed new changes will require lengthy transitional arrangements and will need to be phased-in over time. For banks, major systems and process changes have to be considered, as well as the training of staff and communicating these substantial changes to bank customers.”

“It is crucial that the outcome of these major changes produces an effective regulatory framework, combining a workable approach for industry and a regime which meets international obligations under FATF.”

The ABA expects that non-financial businesses and professions such as real estate agents and dealers in precious stones and metals will be included in the second tranche of the AML/CTF reforms.

The ABA looks forward to participating on the AML advisory group and to further consulting on the detail of the legislation, particularly the new Rules.

For further information:

Heather Wellard
Director, Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439

ENDS