Australia’s progress in strengthening measures to tackle money laundering and terrorist financing

Publication details

Language

English

Country

Australia

3rd Follow-Up Report Australia - 2018

Filename
FUR-Australia-2018.pdf
Size
1 MB
Format
application/pdf
Download

Paris, 8 November 2018 – As a result of Australia’s progress in strengthening its framework to tackle money laundering and terrorist financing since their 2015 mutual evaluation, the FATF has re-rated the country on 7 of the 40 Recommendations. 

Australia has been in an enhanced follow-up process, following the adoption of the FATF-APG mutual evaluation, which assessed the effectiveness of Australia’s anti-money laundering and counter-terrorist financing (AML/CFT) measures and the country’s compliance with the FATF Recommendations. In line with the FATF Procedures for mutual evaluations, Australia has reported back to the FATF on the progress it has made to strengthen its AML/CFT framework.

This report analyses Australia’s progress in addressing the technical compliance deficiencies identified in the mutual evaluation report.

To reflect this progress, the FATF has re-rated Australia on the following Recommendations:

15 – New Technologies from largely compliant to compliant
19 - Higher-risk countries from partially compliant to largely compliant
30 – Responsibilities of law enforcement and investigative authorities from largely compliant to compliant
32 – Cash couriers from largely compliant to compliant
36 – International instruments from largely compliant to compliant

The report also looks at whether Australia’s measures meet the requirements of FATF Recommendations that have changed since their 2015 mutual evaluation, taking into account any new measures since the mutual evaluation. The FATF has re-rated Australia on the following Recommendations:

5 – Terrorist financing offence from largely compliant to compliant
8 – Non-profit organisations from non compliant to largely compliant

The FATF agreed to maintain the partially compliant rating for Recommendation 18 and the compliant rating for Recommendations 7 and 21.

 

 

Previous report

Mutual Evaluation of Australia - 2015

Technical Compliance

Ratings which reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations.

Australia - Mutual Evaluation 2015

R.1 - Assessing risk & applying risk-based approach
PC
R.2 - National cooperation and coordination
LC
R.3 - Money laundering offence
C
R.4 - Confiscation and provisional measures
C
R.5 - Terrorist financing offence
LC
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
C
R.7 - Targeted financial sanctions related to proliferation
C
R.8 - Non-profit organisations
NC
R.9 - Financial institution secrecy laws
C
R.10 - Customer due diligence
PC
R.11 - Record keeping
LC
R.12 - Politically exposed persons
LC
R.13 - Correspondent banking
NC
R.14 - Money or value transfer services
LC
R.15 - New technologies
LC
R.16 - Wire transfers
PC
R.17 - Reliance on third parties
PC
R.18 - Internal controls and foreign branches and subsidiaries
PC
R.19 - Higher-risk countries
PC
R.20 - Reporting of suspicious transactions
C
R.21 - Tipping-off and confidentiality
C
R.22 - DNFBPs: Customer due diligence
NC
R.23 - DNFBPs: Other measures
NC
R.24 - Transparency and beneficial ownership of legal persons
PC
R.25 - Transparency and beneficial ownership of legal arrangements
NC
R.26 - Regulation and supervision of financial institutions
PC
R.27 - Powers of supervisors
PC
R.28 - Regulation and supervision of DNFBPs
NC
R.29 - Financial intelligence units
C
R.30 - Responsibilities of law enforcement and investigative authorities
LC
R.31 - Powers of law enforcement and investigative authorities
LC
R.32 - Cash couriers
LC
R.33 - Statistics
LC
R.34 - Guidance and feedback
LC
R.35- Sanctions
PC
R.36 - International instruments
LC
R.37 - Mutual legal assistance
C
R.38 - Mutual legal assistance: freezing and confiscation
C
R.39 - Extradition
C
R.40 - Other forms of international cooperation
C

C = compliant   |   LC = largely compliant     |   PC = partially compliant   |   NC = non-compliant

Related materials

The FATF Recommendations

The FATF Recommendations are the basis on which all countries should meet the shared objective of tackling money laundering, terrorist financing and the financing of proliferation. The FATF calls upon all countries to effectively implement these measures in their national systems.
Read more

Mutual Evaluations

The FATF conducts peer reviews of each member on an ongoing basis to assess levels of implementation of the FATF Recommendations, providing an in-depth description and analysis of each country’s system for preventing criminal abuse of the financial system
Read more Consolidated assessment ratings
ESAAMLG Logo

FATF Methodology for assessing compliance with the FATF Recommendations and the effectiveness of AML/CFT systems

The FATF Methodology for assessing compliance with the FATF Recommendations and the effectiveness of AML/CFT systems sets out the evaluation process.
Read more