Corporate governance
AML - How we respond
New Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws were passed in Australia in December 2006.
Westpac Group (including BT Group) has set up a company-wide, ongoing program of work to manage the changes we're making between now and March 2010, so we comply with the new AML/CTF laws. Our people have been trained on the changes and we're adopting a staggered approach to implementing these changes across Westpac Group.
Existing customers probably won't see many changes.
On 23 February 2009, we introduced changes to the way we identify and verify all new customers. You will find details of identification requirements by customer type in the customer identification pages.
What is money laundering?
Money laundering is the process of converting money obtained through criminal activity, to give it the appearance of having been obtained from a legitimate source. This can be done using a series of financial transactions to distance the money from its source, provide anonymity and disguise any audit trail. Anti-Money Laundering (AML) is the process of trying to prevent money laundering.
What is terrorism financing?
Terrorism financing is the funding of acts of terrorism, which have the intention of causing disruption or human loss for the sake of a cause or ideology. The source of funds can either be legal or illegal, and the financial system can be used to store and/or move funds between regions and countries. Counter-Terrorism Financing (CTF) is the process of trying to prevent or hinder the financing of a terrorist act.
Why is it important for Westpac to act?
Money laundering is a crime and funds being laundered may be used to finance other crimes. The funding of terrorist activities can cause catastrophic damage. Society benefits from preventing crimes such as money laundering and terrorism financing.
Many areas of Westpac already have processes in place to respond to laws such as FTRA (Financial Transaction Reports Act 1988), SOFOT (Suppression of Financing of Terrorism Act 2002) and ATA (Anti-Terrorism Act 2005), as well as other legislation regulating money laundering.
Current AML/CTF activities include:
- Reporting any transactions which appear suspicious
- Reporting transactions with a cash component of $10,000 or more
- Reporting electronic transfers of funds into or out of Australia
In future, we will report any 'suspicious matters' including suspicious transactions, and/or any other activity that is regarded as suspicious. We will also continue to report cash transactions of $10,000 or more, and electronic transfers of funds into or out of Australia.
The FTRA also requires financial organisations to verify the identity of people who are signatories to accounts. This is called Know Your Customer (KYC), and will also apply under the new AML/CTF laws.
Why is Westpac involved?
All Australian financial institutions have to comply with the new laws. Westpac Group aims to identify, mitigate and manage money laundering and the financing of terrorism to comply with relevant laws, protect our reputation, and be a good corporate citizen.
Further information
Westpac Group (including BT Group) is not in a position to offer advice (legal or otherwise) to customers. Business customers should seek guidance from their own legal advisors regarding impacts of AML/CTF legislation on their own business activities. Information can also be found at:
- The Attorney-General's Department, www.ag.gov.au/aml (contains information for personal customers and businesses
- AUSTRAC - www.austrac.gov.au
- Investments & Financial Services Association (IFSA) - www.ifsa.com.au
- Australian Financial Markets Association (AFMA) - www.afma.com.au
- Financial Planning Association (FPA) - www.fpa.asn.au
