Sydney, 13 July, 2006: The Australian Bankers’ Association (ABA) welcomes today’s release of the new drafts of the Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Bill and Rules by the Federal Government.

The new package is expected to include detailed changes to the draft Rules. These changes to the content of the draft Rules were developed during industry consultation meetings co-chaired by the Attorney-General’s Department, AUSTRAC and the ABA, and involving a broad range of industry representatives.

The ABA said the meetings have demonstrated a cooperative approach between Government and industry on the development of this new legislation. More than 100 representatives from the finance sector and others, who are covered by the first tranche of legislation, have participated and contributed to the discussions on AML/CTF.

The ABA and its member banks will now examine in detail the draft Bill, the draft Rules and the Bill’s interaction with the Rules. The banking sector looks forward to providing further considered views to the Federal Government, in the ongoing consultation process.

Ian Gilbert, Acting Chief Executive of the ABA, said banks will still need a three-year roll-out period to fully implement the new laws.

“While banks are used to working within the current AML regime, the changes will require lengthy transitional arrangements and will need to be phased in. Banks will need to design and implement changes to complex systems and develop new training programs for personnel.”

“Communication programs will also be needed for customers to explain the substantial changes in bank processes and the banking industry looks forward to working with the Federal Government on this important community awareness campaign.”
 
“It is crucial that the outcome of these major changes produces a workable approach for industry and a regime which meets Federal Government concerns on complying with Australia’s international obligations on AML/CTF.”

Mr Gilbert said the next step will be for the Government and the financial services industry to work together on the continuing development of the Rules and the Guidelines which may be required to give effect to the Rules and agree to an implementation timetable.

For further information:

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

ENDS