Australian Government: Attorney-General's Department
Australian Government: Attorney-General's DepartmentAchieving a Just and Secure Society

Information for Customers

Need to know more about the new Anti-Money Laundering and Counter-Terrorism Financing laws? Customer information line: 1800 021 037

Australia has implemented new anti-money-laundering and counter-terrorism financing (AML/CTF) laws to meet international standards and to help protect businesses from being misused for money laundering and terrorism financing.

As a customer seeking certain services you may be asked to verify your identity.  By verifying your identity you are helping to protect Australian businesses from being misused for the purposes of criminal activity.

Frequently asked questions

 

What is money laundering and terrorism financing?

The goal of most criminal acts is to generate a profit. To enjoy their ill-gotten gains, criminals commonly seek to disguise the illegal source of those profits. Money laundering is the processing of criminal profits to disguise their illegal origin.

Terrorist groups also move funds to disguise their source, purpose and destination. Terrorism financing includes the financing of terrorist acts, terrorists and terrorist organisations.

Both money laundering and terrorism financing are serious crimes.

What are the new AML/CTF laws?

The Government has introduced new laws in the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

The new laws require businesses that provide certain financial or gambling services, or those involved in bullion dealing, to:

  • identify their customers before providing a service
  • report certain transactions, and
  • report suspicious matters.

Why has new legislation been introduced?

The new laws were introduced to:

  • bring Australia’s AML/CTF system into line with international standards
  • reduce the risk of Australian businesses being misused for the purposes of money laundering or terrorism financing, and
  • meet the needs of law enforcement agencies for targeted information about possible criminal activity and terrorism.

Which customers will be affected by the new AML/CTF laws?

From 12 December 2007 the new laws may affect customers of a number of service providers, including:

  • banks, credit unions, building societies, lending, leasing and hire purchase companies, stored value card issuers, issuers of traveller’s cheques, foreign exchange dealers, asset management companies, remittance dealers, financial planners who arrange for the issue of financial products, life insurers, superannuation funds, custodial service companies, cash couriers and securities dealers
  • the gambling sector, including casinos, bookmakers, TABs, clubs and pubs, internet and electronic gaming service providers, and
  • bullion dealers.

When might I be affected?

As a customer you will be affected in a range of circumstances, including:

  • opening an account with a bank or other financial institution
  • obtaining a loan
  • buying traveller’s cheques
  • sending, receiving or transferring funds electronically
  • undertaking a gambling cash transaction of $10,000 or more
  • buying or selling bullion, and
  • withdrawing superannuation benefits.

Will customers need to provide more information?

A customer conducting a transaction may be asked to provide different forms of identification.

The level of identification required will depend on the risk level of the transaction.

A low risk transaction may involve as little as producing a driver’s licence. However, a higher risk transaction might require more customer information.

The identification obligations come into force on 12 December 2007.

Can a Tax File Number be used to verify my identity?

No. A Tax File Number (TFN) can neither be used or disclosed to establish or confirm your identity.

What happens if I do not have identification?

A business may not be able to provide the service you require if you are unable to provide the appropriate level of identification required by the business.

How will privacy be protected?

Reporting entities and Australian Government agencies which collect personal information are subject to the Privacy Act 1988 (Privacy Act). The Privacy Act regulates the collection, use, disclosure, quality and security of personal information.

For more information on how your privacy will be protected, please contact the Office of the Privacy Commissioner on 1300 363 992 or visit <www.privacy.gov.au/business/aml>.

How can I find out more information?

Please call the Customer Information Line on 1800 021 037 or e-mail customers@austrac.gov.au.