INSIDER_Jun_Jul10 Iss3_52pp
12/6/10
4:12 PM
Page 16
INDUSTRY NeWS
AUSTRAC (CONT) Will my business be fined by AUSTRAC if it is not compliant? No cash in transit dealers have been subject to a financial penalty as yet. Some have been subject to set requirements with fixed dates for compliance once AUSTRAC has determined that they did not comply with all of the requirements. Usually AUSTRAC will give a business four weeks to meet its requirements. AUSTRAC has a range of enforcement powers including enforceable undertakings, remedial directions (precursors to court orders) and also the power to force your business to engage an expert to help you with compliance. AUSTRAC can fine a company up to $11 million and an individual up to $2.2 million for non-compliance. No fines have been imposed on any business in Australia as yet.
security companies? Do I have to do anything? This is a question which the industry needs to solve. Unless the national security company appoints your business as its agent under the AML/CTF laws, your business needs to apply identification processes to the customer you are moving the cash for which is hardly likely to be acceptable to the national security company because it involves contacting that customer.Your business may also be asked to do the cash reporting for the transaction on behalf of the national security company which places that company at risk if you fail to do the reporting. The cleanest solution is to use an agency appointment and for the national security company to do the threshold cash reporting.
My cash in transit work is all subcontracting for one of the national
Are there any exemptions under the new laws?
There are no current exemptions but there may be scope for approaching AUSTRAC to be relieved of cash reporting to banks in certain circumstances. Any exemption granted will not save a cash in transit business from needing to comply with all of the other requirements. Where can I get more information? The AUSTRAC website contains a lot of information but it is not easy for cash in transit dealers to navigate their way around to find what relates particularly to them.The AUSTRAC Regulatory Guide is the document which is easiest to read to get an understanding of the range of actions you need to take. *Joy Geary is a consultant specialising in AML solutions based in Melbourne. Her email address is
16 //SECURITY INSIDER JUN/JUL 2010
jmgeary@amlmaster.com and her website is www.amlmaster.com.