Self-managed superannuation fund (SMSF) advisers need to be prepared to implement anti- money laundering (AML) regulations despite escaping the first tranche of groups covered by the legislation, according to Deacons partner Alison Deitz.
The Federal Government has announced SMSFs may be included in the second tranche of groups covered by the legislation, which looks to shift part of the onus for prevention of laundering and terrorism financing from regulatory authorities to industry.
"It is a burden that industry has been fighting about, but one they will have to bear. The costs of compliance will be born by the industry and ultimately passed on to consumers," Deitz said.
"An organisation should asses money laundering and terrorism risk just as it would any other risk in its organisation, such as credit risk or investment risk."
Deacons partner Scott Charaneka said if new Australian regulator the Australian Transaction Reports and Analysis Centre follows the United States model, the emphasis would be as much on the introduction and maintenance of compliance processes as on the policing of specific transactional breaches.
In December 2005, ABN Amro in the US was fined US$80 million for failure to prevent money laundering, maintaining unsafe and unsound practices, and failing to identify, assess and report suspicious activity.
It was also found not to have monitored the volume of transactions and cash flows and train staff adequately in compliance requirements.
"We will have another regulator to get to know and deal with," Charaneka said.
Proposed AML reforms seek to bring Australia's current money laundering and terrorism financing detection and prevention regime into line with international AML standards post 9/11.
The Government's Financial Action Task Force made 40 revised recommendations on money laundering and nine special recommendations on terrorism financing, resulting in the Anti-Money Laundering and Counter-Terrorism Financing Act, which received royal assent in December.
