New AML/CTF laws were enacted in December 2006 to help protect Australian businesses from being used for money laundering and terrorism financing activities and to comply with international standards. The Act exists to help prevent Australia’s financial systems being utilised to move and legitimise proceeds from illegal activities, such as drug trafficking, theft, tax evasion and terrorism.
There are three phases in the implementation of these laws with phase one relating to banking having commenced in December 2006. Phase two came into effect in December 2007 and revolves around customer identification requirements while phase three covering transaction monitoring and suspicious activity is due to be implemented by December 2008.
