Are you a digital currency exchange provider?
Changes to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) will affect digital currency exchange (DCE) service providers.
On 7 December 2017 Parliament passed the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2017 (Amendment Act). Royal Assent was granted on 13 December 2017.
The Amendment Act expands the AML/CTF Act to include regulation of DCE providers. It is expected these changes will come into effect on 3 April 2018.
Regulation will involve mandatory registration and compliance obligations, including:
- customer identification and due diligence
- adopting and maintaining an AML/CTF program—this includes identifying, managing and lessening money laundering and terrorism financing risk
- suspicious matter reporting
- threshold transaction reporting—this involves cash amounts of $10,000 or more
- record keeping.
What can you do to prepare?
You will not be able to register with AUSTRAC until the new obligations commence. However, you can start preparing your business by reading our guidance for businesses that are currently regulated.
Useful areas of this website that might assist you include the following.
1. Obtaining national police certificates
To register with AUSTRAC you will need to obtain a national police certificate or national police history checks, before submitting your application. These checks take time to be processed by the relevant authority.
2. Registration application
The information you will need to apply for registration will be similar to the information asked on the current form for independent remitter applicants. A new form will be available for DCE providers to register, when the obligation commences.
3. AML/CTF program
You can read about what is required in an AML/CTF program.
4. Submitting transaction reports
Digital currency exchange providers will be required to submit suspicious matter reports (SMRs) and threshold transaction reports (TTRs) to AUSTRAC.
Read more about reporting obligations.
What happens next?
AUSTRAC published draft AML/CTF Rules for public consultation, which was open from 16 January to 13 February 2018. AUSTRAC will consider feedback received, in finalising these Rules.
AUSTRAC will keep you updated via our homepage as information and guidance becomes available, including the date when the new obligations commence.