Key changes under the laws for the accounting profession, amongst others.
The changes impact high-risk services and current reporting entities.
Regulation of high-risk services
The new laws will expand our regulation into new industries that are recognised domestically and globally as high-risk for criminal exploitation.
This includes certain designated services that are typically provided by the following businesses (newly regulated entities):
- real estate professionals
- dealers in precious stones, metals and products
- lawyers
- conveyancers
- accountants
- trust and company service providers
- businesses providing certain virtual asset services (beyond currently regulated digital to fiat currency exchange services).
Money laundering
Money laundering is an enabler of serious crimes such as:
- child exploitation
- drug and sex trafficking
- scams
- fraud
- terrorism
- proliferation of weapons of mass destruction (WMD).
Serious and organised criminal groups are driven by illicit profit. It sits at the core of why they commit crimes.
Terrorism financing
Terrorism financing funds terrorist activity. Even small-scale and low-value financial help provide the means to:
- launch terrorist attacks
- create community unrest
- erode trust in government and democratic norms.
Proliferation financing
Proliferation financing is funding or providing services and transactions that facilitate the development of WMDs. WMDs include:
- nuclear
- chemical
- biological.
Proliferation financing diverts funds from our legitimate economy and can impact the reputation of our economy and financial system.
How the anti-money laundering and counter-terrorism funding regime helps
The anti-money laundering and counter-terrorism financing (AML/CTF) regime helps to combat ML/TF threats in 2 ways.
First, it supports businesses to educate themselves about criminal threats. This includes understanding their risks and taking action. This reduces opportunities for ML/TF and proliferation financing.
Second, by businesses reporting valuable information and suspicious activity to us. This helps us, law enforcement and national security agencies detect, investigate and prosecute criminal activity. It also helps to confiscate the proceeds of crime.
