Regulation: AUSTRAC issues its first remedial direction
Australia's FIU, AUSTRAC, has issued its first "Remedial Direction for Non-Compliance." A remittance agent is the subject of the notice having failed "top adopt and maintain an AML / CTF programme."
Chief Executive Officer John Schmidt issued the direction on 5 November to Ms Mojgan Zojaji, trading as Little Persia.
The obligations to put the measures in place are under the Anti Money Laundering and Countering the Financing of Terrorism Act 2006, an Act which had a horrendous and tortured gestation, and then came into force in staggered stages over a three year period.
However, the requirements to put risk management systems in place have been in effect since 13 December 2007.
AUSTRAC has conducted widespread reviews across the country, ensuring that businesses knew of and understood their obligations. The issue of a notice has, so far, been regarded as a last resort.
But there are signs that the informal period of grace is over - and that businesses that think they can fly beneath the radar are wrong: "When faced with persistent or serious breaches, we will draw on our range of enforcement powers in a measured and appropriate manner to secure compliance and rectification - in this case by issuing a remedial direction,' said Mr Schmidt. 'Other small businesses should note that AUSTRAC's enforcement activity will extend beyond large, well-known financial institutions.'
The direction requires Little Persia to submit to AUSTRAC a written AML/CTF programme within 28 days.
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