The quickest, most reliable and cost effective way of achieving compliance
The introduction of Anti-money Laundering and Counter-Terrorism Financing (AML/CTF) legislation on 12th of December 2007 was designed to ensure that Australian institutions (reporting entities) that provide defined financial services (designated services) deemed to be a money laundering or financing terrorism risk were managed in line with International standards set by the Financial Action Task Force (FATF).
The AML/CTF Legislation has imposed many requirements on reporting entities. Of the major provisions is the verification of customers (Know Your Customer (KYC)) at the initial point of contact and on an ongoing basis (Ongoing Customer Due Diligence (OCDD)).
The greatest change to verification of customers and advantage to reporting entities is the introduction and acceptance of electronic verification. Previously legislated verification under the Financial Transactions Reporting Act (FTRA) 1988 required paper based and face to face verification of the applicant.
Electronic verification is a comprehensive and cost effective method of verifying new and existing customers whilst not impacting on the customer experience.
Under the AML/CTF electronic verification rules reporting entities must at a minimum verify the following information about an individual:
- The customer’s full name; and
- either:
- the customer’s date of birth; or
- the customer’s residential address
AML/CTF safe harbour verification requires:
- The customer’s full name and address to be verified against at least two independent and reliable data sources; and
- either:
- the customer’s date of birth (from at least one data source); or
- a three year transaction history
The verification of organisations (non-natural entities) is also covered under the AML/CTF legislation. The minimum requirements of collection and verification differ depending on the organisation type.
FCS has a range of solutions that that are designed to work in with your businesses AML/CTF programs. Whether you require identity verification at the first point of customer contact, or the re-identification of a customer when certain transaction threshold are reached, FCS can provide you with a simple, reliable and cost effective way of achieving compliance.
Because FCS uses more than two independent data sources, you can attain safe harbour in most cases with our electronic verification services.
In addition, FCS can assist you with Know Your Customer (KYC) compliance. Keeping your customer contact details up to date can be a costly exercise, however FCS can help you reduce the time and cost associated with KYC compliance through its automated services.
For more information or to arrange a free demonstration,
contact us
on 13 23 33
Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No.1)
http://www.comlaw.gov.au/ComLaw/Legislation/LegislativeInstrumentCompilation1.nsf/0/6F8C8EF52FC7133CCA25732100216304/$file/AntiMonLaund2007_AM2007No1_inuse.pdf
Anti-Money Laundering and Counter-Terrorism Financing Act 2006
http://www.comlaw.gov.au/ComLaw/Legislation/ActCompilation1.nsf/0/227C2F583293FB80CA2572C300123E5E/$file/AntiMoneyLaundCountTerrFin2006.pdf