What is money laundering and what is terrorism financing

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 Cth) (AML/CTF Act) is part of a comprehensive legislative package designed to bring Australia into line with international best practice to deter money laundering and terrorism financing. This guidance note provides an introduction to the AML/CTF Act, and an explanation of the roles of AUSTRAC and the Attorney-General’s Department in AML/CTF.

This guidance note explains what is money laundering and what is terrorism financing. It explains selected key definitions that are relevant to legal practitioners, and provides examples to aid legal practitioners’ understanding of AML/CTF terminology. This guidance note also covers some key concepts that legal practitioners are likely to come across, including what is the money laundering cycle, and what is the difference between money laundering and terrorism financing.

See What is money laundering and what is terrorism financing?

Key obligations under the anti-money laundering and counter-terrorism financing legislation

This guidance note explains the key obligations of reporting entities under the AML/CTF Act. They include enrollment and registration with AUSTRAC, establishment and management of an AML/CTF program, conducting customer due diligence, requirements relating to reporting, and requirements relating to record keeping obligations. This guidance note also covers some key concepts that legal practitioners are likely to come across, including what is a risk-based approach to regulatory compliance, who are “politically exposed persons” and a reporting entity’s dealings with them, and what is “KYC” (being the collection and verification of minimum “know your customer” information). It is useful that legal practitioners have working knowledge of these concepts when communicating with and advising clients.

See Key obligations under the anti-money laundering and counter-terrorism financing legislation.