AUSTRAC has commenced a new enforceable undertakings regime.
undertaking is a written undertaking that is enforceable in a court,
given to and accepted by the AUSTRAC CEO. They are generally an
alternative to civil or administrative action where there has been a
contravention of the AML/CTF Act, the regulations or the AML/CTF Rules.
Austrac’s first acceptance of enforceable undertakings are from
Barclays Bank PLC and Mega International Commercial Bank
Co,. Ltd , following a number of deficiencies and breaches, including reporting breaches,of Australia’s anti-money
laundering and counter-terrorism financing (AML/CTF) laws.
Barclay’s breaches were identified following an on-site assessment.
The undertakings require the companies to:
- review transactions for a period of seven years and provide AUSTRAC any outstanding reports required by law;
- develop and implement proper systems and controls to ensure
that the company complies in the future with its reporting and AML/CTF
- submit to AUSTRAC an independent expert report detailing
the company’s compliance with the AML/CTF laws. The companies will also be
required to submit similar reports in 2010 and 2011.