Austrac enforceable undertakings

AUSTRAC has commenced a new enforceable undertakings regime.

An enforceable
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
    program obligations;
  • 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.
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