AUSTRAC accepts enforceable undertaking from Mega International Commercial Bank
1 July 2009
For immediate release
The Australian Transaction Reports and Analysis Centre (AUSTRAC) today announced it has accepted an enforceable undertaking from Mega International Commercial Bank Co,. LTD (Mega ICBC).
The undertaking was accepted by AUSTRAC as a legally enforceable commitment by Mega ICBC to rectify a number of breaches by it of Australia's anti-money laundering and counter-terrorism financing (AML/CTF) laws. The undertaking is the first of two enforceable undertakings accepted by the AUSTRAC Chief Executive Officer this week.
Under Australian law, banks are required to submit a range of transaction and suspicious matter reports to AUSTRAC. They must also have in place an AML/CTF program to prevent their services being used to facilitate laundering of the proceeds of crime or the financing of terrorism.
Mega ICBC has acknowledged a number of deficiencies and breaches, including reporting breaches, of Australia's anti-money laundering laws between 2003 and 2009.
Within the terms of the enforceable undertaking Mega ICBC has agreed to:
- review transactions for a period of seven years and provide AUSTRAC any outstanding reports required by law
- develop and implement proper systems and controls to ensure that Mega complies in the future with its reporting and AML/CTF program obligations
- by 30 November 2009, submit to AUSTRAC an independent expert report detailing Mega ICBC's compliance with the AML/CTF laws. Mega ICBC will also be required to submit similar reports in 2010 and 2011.
Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), the AUSTRAC CEO is empowered to accept enforceable undertakings as a means to ensure compliance with the AML/CTF Act, including as an alternative to taking criminal or civil enforcement action.
'AUSTRAC has a suite of enforcement powers available under the AML/CTF Act and will use these powers in a measured and appropriate manner to secure compliance with the Act,' said AUSTRAC Chief Executive Officer, Neil Jensen.
'Compliance with the AML/CTF Act plays a key role in protecting the integrity of the Australian financial system.'
The enforceable undertaking can be viewed on the AUSTRAC website at: http://www.austrac.gov.au/enforceable_undertakings.html
About AUSTRAC:
AUSTRAC is Australia's anti-money laundering and counter-terrorism financing regulator and specialist financial intelligence unit. As a regulator, AUSTRAC works with Australian industries and businesses to promote compliance with anti-money laundering and counter-terrorism financing legislation. As Australia's financial intelligence unit, AUSTRAC contributes to investigative and law enforcement work to combat financial crime and prosecute criminals in Australia and overseas.
Note to editors:
AUSTRAC's Chief Executive Officer, Neil Jensen, is available for interview.
Media enquiries only:
Kim Hargest
Senior Manager Corporate Communications
Telephone: 03 8636 0553
Mobile: 0418 103 107
Email: Kim.Hargest@austrac.gov.au
