Regulator Austrac has warned the financial services sector that the industry has until December to comply with the first phase of Australia's anti-money laundering (AML) and counter terrorism laws.
From December 12, firms will need to have internal AML compliance programs that verify the identity of customers. Businesses that breach the laws can be fined $11 million, while individuals within the company penalties of up to $2.2 million.
"With less than a month to go until the provisions take effect, we would expect regulated entities to be well advanced towards compliance," Austrac chief executive Neil Jensen said.
Jensen said Austrac will continue to collaborate with the industry to help businesses meet their compliance obligations.
"I encourage businesses which are not yet fully compliant to contact us. Where businesses are candid and cooperative, Austrac is likely to be more open to resolving compliance issues," he said.
Investment and Financial Services Association chief executive Richard Gilbert said that some companies are more advanced than others in meeting their compliance obligations and hopes the regulator will be tolerant when assessing the degree of compliance in the industry.
"During this phase there is a need for flexibility and empathy by the regulator," Gilbert said.
"Compliance in anti-money laundering has been a significant cost and expense for most of our members. We are obviously weighing up the benefits but the jury is still out."
