Austrac letting unregistered remitters slip through the net
A parliamentary committee has expressed concern about the way the anti-money laundering and counter-terrorism financing regulator Austrac is dealing with unregistered remitters.The Parliamentary Joint Committee on Law Enforcement's report on finance related crime agreed with submissions that criticised Austrac for "disproportionality of regulatory actions against registered and unregistered remitters."Austrac has cancelled ten remitters' registrations since the Remittance Sector Register was established in 2011. Another seven entities have been refused registration and 17 have had conditions imposed in their registrations.Remitters complained to the committee that current regulatory arrangements were not deterring unregistered remittance operators, who were operating without much threat of regulatory action by Austrac.They said there was little disincentive to operate as an unregistered remitter.According to the committee's report, Austrac said there had been "a degree of regulatory engagement" with unregistered remitters. However, there have not been any prosecutions of remitters for being unregistered.The committee said it was concerned that Austrac was "not as expeditious in moving against unregistered remitters as it ought to be" and recommended it increase its regulatory oversight in this area.The committee also called for Australia's AML/CTF regime to be broadened and for Austrac to be allowed greater involvement in law enforcement intelligence operations.It said there was scope to expand the regulated population of non-financial businesses and professions, including lawyers and accountants, real estate agents and trust and company service providers.This is in line with recommendations of the Financial Action Task Force, an inter-governmental body whose role is to set standards for combating money laundering and terrorism financing, which released a review of Australia's AML/CTF regime earlier this year.The committee said the matter should be addressed by the Attorney-General's Department, which has had a review of the AML/CTF Act underway since early 2014.One question raised during the parliamentary inquiry was whether the Australian Crime Commission board should be expanded to include Austrac as a full board member.ACC and ASIC submissions supported Austrac's increasing involvement in law enforcement intelligence operations and its full membership of the ACC board.The committee recommended that the Government amend the Australian Crime Commission Act to enable Austrac to become a full member of the ACC board.