AUSTRAC orders audit of Gold Corporation’s compliance with financial crime laws
AUSTRAC has ordered the appointment of an external auditor to Gold Corporation under section 162 (2) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).
The appointed external auditor will be authorised by AUSTRAC to assess Gold Corporation’s compliance with the AML/CTF Act and Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) (AML/CTF Rules).
Gold Corporation trades as The Perth Mint, and as a regulated entity is subject to AML/CTF obligations. AUSTRAC identified compliance concerns following a period of engagement with the Australian-based Gold Corporation, which has resulted in the order to appoint an external auditor.
The external auditor must report to AUSTRAC within 180 days of being appointed and will examine Gold Corporation’s compliance with:
- the requirement to have an AML/CTF program and comply with Part A of that program;
- the requirement to have an ongoing customer due diligence program;
- suspicious matter reporting obligations; and
- maintenance of enrolment details within required timeframes.
AUSTRAC Chief Executive Officer, Nicole Rose, said all businesses regulated by AUSTRAC must comply with their obligations under the AML/CTF Act.
“AML/CTF compliance requirements are in place to protect businesses, the financial system, and the Australian community from criminal threats.”
“AUSTRAC does not hesitate to take action where a business that we regulate is failing to satisfy their responsibility to protect themselves and Australia’s financial system from criminal activity,” Ms Rose said.
“We will continue to work closely with Gold Corporation to address compliance concerns.”
The extent of the auditor’s examination is determined by AUSTRAC and will be at Gold Corporation’s expense.
The outcomes of the audit will assist Gold Corporation to comply with anti-money laundering obligations, and inform AUSTRAC whether any further regulatory action is required.
External Audit under section 162(2) of the AML/CTF Act
AUSTRAC has the power to require a reporting entity to appoint an external auditor to examine the reporting entity’s compliance with the AML/CTF Act and the AML/CTF Rules.
The basis of a s162(2) Audit is reasonable grounds to suspect that the reporting entity has contravened, is contravening, or proposes to contravene the AML/CTF Act or the AML/CTF Rules.
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