ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ACT 2006 - SECT 165 Money laundering and terrorism financing risk assessments
ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ACT 2006 - SECT 165
Money laundering and terrorism financing risk assessments(1) This section applies if the AUSTRAC CEO is satisfied that:
(a) a reporting entity has not carried out a money laundering and terrorism financing risk assessment; or
(b) a reporting entity has carried out a money laundering and terrorism financing risk assessment, but the assessment has ceased to be current; or
(c) a reporting entity has carried out a money laundering and terrorism financing risk assessment, but the assessment is inadequate.
(2) The AUSTRAC CEO may, by written notice given to the reporting entity, require the reporting entity to:
(a) carry out a money laundering and terrorism financing risk assessment; and
(b) prepare a written report setting out the results of the assessment; and
(c) give the AUSTRAC CEO a copy of the report within:
(i) the period specified in the notice; or
(ii) if the AUSTRAC CEO allows a longer period--that longer period.
(3) A person commits an offence if:
(a) the person is subject to a requirement under subsection (2); and
(b) the person engages in conduct; and
(c) the person's conduct breaches the requirement.
Penalty: Imprisonment for 6 months or 30 penalty units, or both.
Civil penalty
(4) A reporting entity must comply with a requirement under subsection (2).
(5) Subsection (4) is a civil penalty provision.
Money laundering and terrorism financing program risk assessment
(6) For the purposes of this Act, a money laundering and terrorism financing risk assessment is an assessment by a reporting entity of:
(a) the risk the reporting entity may reasonably face that the provision by the reporting entity of designated services at or through a permanent establishment of the reporting entity in Australia might (whether inadvertently or otherwise) involve or facilitate:
(i) money laundering; or
(ii) financing of terrorism; and
(b) what the reporting entity will need to do, or continue to do, to:
the risk the reporting entity may reasonably face that the provision by the reporting entity of designated services at or through a permanent establishment of the reporting entity in Australia might (whether inadvertently or otherwise) involve or facilitate:
(iv) money laundering; or