Sydney, 3 November, 2006: The Australian Bankers’ Association (ABA) welcomes the introduction into Parliament of the Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Bill and the Anti-Money Laundering and Counter-Terrorism Financing (Transitional Provisions and Consequential Amendments) Bill.

Following extensive industry consultation with the ABA, its member banks and other financial institutions, there have been many changes to the AML/CTF Bill since the Exposure Draft was released on 13 July 2006. 

Consultation with the Federal Government has focussed on a risk-based approach to drafting of the new obligations. 

David Bell, Chief Executive of the ABA, said: “This will put Australia in line with leaders in the global anti-money laundering effort such as the United Kingdom and the United States, and is consistent with the very latest thinking of the Financial Action Task Force (FATF), which sets the international standards.”

The ABA and its member banks will now examine in more detail the two Bills and the accompanying Explanatory Memorandums (EM). The banking sector looks forward to providing further views to the Federal Government during the remainder of the legislative development process.

The ABA welcomes the recognition of the need for a three-year implementation period, but will seek further confirmation of the arrangements set out in the AML/CTF Bill and accompanying EM.

A substantial amount of detail has been left for specification in the Rules and banks will still need to see that detail before they can accept that a workable AML/CTF regime can be achieved.

“We have worked very constructively with AUSTRAC and the Attorney-General’s Department on the drafting of the Rules, but these have not been released with the legislation. There is still a great deal of work to be done, and the key Rules must be in place before the legislation can come into force.  The ABA and its member banks look forward to re-engaging with Government on this crucial task,” Mr Bell said.

Mr Bell hopes the Federal Government’s communication campaign on the AML/CTF legislation will start as early as possible.

“Banks will advise their customers of the details of process and documentation changes, but this must be done against the backdrop of extensive Government communication on Australia’s role in the fight against money laundering and terrorist financing, and general advice on the impact of the new legislation,” he concluded.


For further information:

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