AUSTRAC issues its first remedial direction for non-compliance
5 November 2009
AUSTRAC has issued its first remedial direction for non-compliance with Australia's anti-money laundering and counter-terrorism financing (AML/CTF) legislation.
Chief Executive Officer John Schmidt issued the direction today to Ms Mojgan Zojaji, trading as Little Persia, a remittance service provider, for failure to adopt and maintain an AML/CTF program.
The direction stipulates that Little Persia has 28 days to submit to AUSTRAC a written AML/CTF program.
Mr Schmidt said: 'An AML/CTF program is a cornerstone of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
'The purpose of having an AML/CTF program is to identify, mitigate and manage the money laundering and terrorism financing risk a reporting entity may face.'
AUSTRAC's preferred approach has been one of cooperation and working with reporting entities toward full compliance with the legislation.
'However, when faced with persistent or serious breaches, we will draw on our range of enforcement powers in a measured and appropriate manner to secure compliance and rectification - in this case by issuing a remedial direction', said Mr Schmidt.
'This direction is a timely reminder to industry that AUSTRAC is serious about protecting the integrity of the Australian financial system', Mr Schmidt said, adding this action is a sign that the regulator is moving to a 'business-as-usual' phase of operations.
The remittance sector, largely comprised of small operators, is particularly vulnerable to the risk of money laundering and terrorism financing activity however, this risk is moderated when sufficient AML/CTF programs and controls are in place.
'Other small businesses should also note that AUSTRAC's enforcement activity will extend beyond large, well-known financial institutions', Mr Schmidt said.
The remedial direction can be viewed on the AUSTRAC website at: www.austrac.gov.au/remedial_directions.html.
About AUSTRAC:
The Australian Transaction Reports and Analysis Centre (AUSTRAC), in fighting global crime, assists in protecting the integrity of the Australian financial system. AUSTRAC is a world-renowned and respected financial intelligence unit and is Australia's anti-money laundering and counter-terrorism financing regulator.
Note:
AUSTRAC's Chief Executive Officer John Schmidt is available for interview.
Media enquiries:
Kim Hargest
Telephone: +61 3 8636 0553
Mobile: 0418 103 107
Email: Kim.Hargest@austrac.gov.au
