The Australian Transaction Reports and Analysis Centre (AUSTRAC) has recently published updated guidance for digital currency exchanges in the following areas:
- How to submit more effective suspicious matter reports (SMRs)
- Applicable customer identification procedures (ACIP) and ongoing customer due diligence
- AUSTRAC’s expectations of risk-based procedures
Although this is a technical update, not a change to the law, it’s important digital currency exchanges keep abreast of AUSTRAC’s guidance and publications. AML/CTF Programs and associated procedures should be continuously evolving and reviewed.
Registered digital currency exchanges who are developing and updating Part A of an Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Program are required to take into account any:
- applicable guidance material disseminated or published by AUSTRAC, and
- feedback provided by AUSTRAC in respect of their business or the DCE industry,
which is relevant to the identification, mitigation and management of the ML/TF risks arising from exchange services.
When we undertake independent reviews we often see:
- AML/CTF Programs often state that only AUSTRAC guidance and feedback specifically provided to the entity will be incorporated into their AML/CTF program
- AML/CTF Programs are not updated to reflect all of AUSTRAC’s guidance and feedback.
If an exchange has been operating for two or more years and has not undertaken an independent review, they should do so urgently and at the least before the end of this year. This should be reported in next year’s Annual Compliance Report. Otherwise, AUSTRAC may ask why these matters haven’t been addressed.
AUSTRAC has recently upgraded its business profile form for digital currency exchanges which is welcome change to a web-based. Although a long-awaited upgrade, it’s not without quirks. Once drafted and saved, a user needs to log-in every 3 days, otherwise the new content in the form will be lost.
