AUSTRAC Releases New Guidance on Professional Service Providers

AUSTRAC has published updated guidance materials to help professional service providers prepare for their upcoming AML/CTF obligations. Here's what you need to know.

New AUSTRAC Guidance

AUSTRAC has released new guidance materials aimed at helping professional service providers, including accountants, understand and prepare for their upcoming AML/CTF obligations under Tranche 2.

Key Points from the Guidance

Risk Assessment AUSTRAC emphasises the importance of conducting a thorough risk assessment of your business. This should consider: - The types of services you provide - Your client base - Geographic risks - Delivery channels used

Program Development The guidance outlines the key components of an effective AML/CTF program: - Part A: Risk assessment and management - Part B: Customer due diligence procedures - Part C: Ongoing monitoring and reporting

Proportionate Approach Importantly, AUSTRAC acknowledges that compliance programs should be proportionate to the size and risk profile of each business. Smaller firms with lower-risk client bases can adopt simpler approaches.

What This Means for Your Firm

The release of this guidance signals that AUSTRAC is actively preparing for Tranche 2 implementation. Firms should:

1. Review the guidance materials 2. Begin internal discussions about compliance 3. Consider seeking expert assistance to interpret requirements

Next Steps

AUSTRAC is expected to release additional guidance materials and conduct industry consultations in the coming months. We'll continue to monitor developments and provide updates.