New AML/CTF requirements in force

Investors should expect increased due diligence requirements from their financial institutions in 2016 due to intensified anti-money laundering and counter-terrorism financing (AML/CTF) measures, says BNP Paribas.

: By Reporter; Friday, 08 January 2016

According to BNP Paribas, from 1 January 2016, institutions will need to adhere to higher due diligence requirements which will mean Australian investors will need to report additional information to financial institutions.

"The requirements stem from the federal government’s Financial Action Task Force," Josephine Maiorana, product manager fund services at BNP Paribas Securities Services Australia said.

"The changes increase the scope of [anti-money laundering] and [counter-terrorism financing] programs and require a range of information to be recorded."

The intensified requirements will mean institutions will need to record additional information such as the identification and verification of beneficial owners of holding structures and also understand the ownership and control structure.

BNP Paribas added that institutions will also be required to record the verification of settlors of trusts and reveal the source of funds.

"Reporting entities are now required to capture this extra information from all investors," Ms Maiorana said.

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