The proposals are in response to a review of the current compliance reporting framework conducted by AUSTRAC.
The review identified a number of issues with the current reporting framework for the annual compliance report (ACR), including questions that have reduced in relevance over time and the regulatory burden of the ACR being disproportionate to the risk of money laundering and terrorism financing.
“The regulatory burden of the current ACR imposes the same regulatory burden on each reporting entity that completes it without taking into account money laundering/ terrorism financing risk exposure,” said the consultation paper.
“The ACR is the same for all reporting entities with no differentiation in the level or type of information requested.”
In response to some of these questions, AUSTRAC is proposing new compliance formats and changes to which entities are required to lodge compliance reports.
One of the proposals in the consultation paper is an enhanced compliance report that would be completed by reporting entities in both the higher and medium-risk categories.
AUSTRAC has also proposed that reporting entities with four or fewer employees, annual earnings of under $100 million, transaction reports comprising a volume of under 25 million and with an entity value below $5 billion will be exempt from lodging either an ACR or an enhanced compliance report (ECR).
Submission on the proposals close on 31 October.
