Subsection 162(2) notice - external audits - compliance
Under subsection 162(2), Part 13 Division 7 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), the AUSTRAC Chief Executive Officer (CEO) may, by written notice, require a reporting entity to:
- appoint an external auditor; and
- arrange for the external auditor to carry out an external audit of whichever of the following is specified in the notice:
- the reporting entity's compliance with the AML/CTF Act, the regulations and the AML/CTF Rules;
- one or more specified aspects of the reporting entity's compliance with the AML/CTF Act, the regulations and the AML/CTF Rules; and
- arrange for the external auditor to give the reporting entity a written report (audit report) setting out the results of the audit; and
- give the AUSTRAC CEO a copy of the audit report.
Before the AUSTRAC CEO can exercise the power to require a reporting entity to appoint an external auditor under subsection 162(2) of the AML/CTF Act, there must be reasonable grounds to suspect that the reporting entity has contravened, is contravening, or is proposing to contravene the AML/CTF Act, the regulations or the AML/CTF Rules.
By publishing copies of written notices requiring an external audit, AUSTRAC remains transparent and accountable in its decision making.
|Date||Entity||Subsection 162(2) notice|
|2 June 2010||George Thomas Hotels|
|26 June 2012||A2Z Communication||A2Z Communication Pty Limited (PDF, 61KB)|
|18 May 2015||Canberra Southern Cross Club Ltd|
Authorised external auditors
Subsection 164(1) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the AML/CTF Act) empowers the AUSTRAC CEO to authorise a specified individual to be an external auditor for the purposes of the AML/CTF Act, in particular for the purpose of subsections 161(2) and 162(2).
Notices given under subsection 161(2) and 162(2) of the AML/CTF Act require a reporting entity to appoint an external auditor. Only authorised external auditors can be appointed by reporting entities that are given notices pursuant to subsections 161(2) and 162(2) of the AML/CTF Act.
View the 'Authorised external auditors' page for the list of authorised external auditors, further information on the Authorised external auditors policy and the application form to apply to become an authorised external auditor.
NOTE: This page of the AUSTRAC website contains links to documents that are currently only available to download in a Portable Document Format (PDF). For more information on requesting an alternative format please visit the accessibility page of the AUSTRAC website.