AUSTRAC Compliance - AML / Anti-money laundering, Counter Terrorism Financing [CTF] Compliance Reporting

AUSTRAC Compliance - AML/CTF

Australian banks and other financial institutions are required to report certain transactions to AUSTRAC (Australian Transaction Reports and Analysis Centre) for anti-money laundering and counter-terrorism financing compliance purposes. 

Matter has to be reported to AUSTRAC within 10 days of the transaction. The reports include details about the transaction, such as the date, amount, account details, and customer identification information.

1. TTR: Transaction Threshold Reporting
2. SMR: Suspect Matter Reporting

TTR

Transaction threshold reporting involves reporting to AUSTRAC any cash transactions or transfers equal to or above a certain threshold amount. The specific thresholds are as follows:

1. Cash Transactions >=10k AUD
2. International Fund Transfers >= 10k AUD
3. E-currency transfers such as Bitcoin >= 10k AUD

SMR

SMR (Suspect Matter Report) reporting is another key anti-money laundering and counter-terrorism financing compliance obligation for Australian banks and financial institutions. It is submitted as soon as the transaction happens when the bank has reasonable grounds to suspect the transaction or an attempted transaction may be related to money laundering, terrorism financing or any other serious criminal offence, for example prostitution, blackmailing, etc.

SMR keypoints:

• Must be reported asap unlike TTR where there is a buffer of 10 days.
• Triggers are suspected activity.
• Must include details of the transaction or attempted transaction, as well as the reasons for suspicision.
• The fact that an SMR has been submitted is strictly confidential.