Sydney, 8 December, 2006: The Australian Bankers’ Association (ABA) welcomed yesterday’s passage of the Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Bill through Parliament.

The passage of the Bill followed 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 on the Bill has focussed on a risk-based approach to drafting of the new obligations. The industry commends Justice Minister, Senator Chris Ellison, who took a leading role in the overall consultation process, as well as representatives from the Attorney-General’s Department and AUSTRAC.

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

David Bell, Chief Executive of the ABA, said: “The key Rules must be in place so that the banking sector can move forward with implementation programs with some certainty. The ABA and its member banks look forward to engaging with Government on this crucial task.”

The ABA is pleased that Senator Ellison has listened to industry concerns regarding the timing of Rules development and has announced a three-month extension, from 12 months to 15 months, for the ‘grace period’, during which AUSTRAC will only take action against a bank or other financial institution which has manifestly failed to take steps towards compliance with its obligations.

Mr Bell said the banking sector looks forward to providing further views to the Federal Government on AML/CTF.

“I note that the Federal Government is proposing the introduction of a further amending Bill in the Autumn sittings in 2007 and this will be an opportunity for any unintended consequences to be addressed.”
 
“The banking sector thinks that it is important that the ongoing consultation is progressed through an effective process, which allows flexibility to deal with the anticipated issues that will arise throughout the implementation.”

“This could include a mechanism such as an AML Council on which there are representatives from Government, the banking sector and others affected by the AML legislation,” Mr Bell said.

For further information:
Heather Wellard, ABA PR,
Phone: 02 8298 0411 
Mobile: 0409 830 439     
ENDS