AML compliance report questions released for consultation

The AML/CTF Rules to be made under section 47(1) of the AML/CTF Act will specify the reporting period(s) and the lodgement period within which compliance reports are required to be submitted to AUSTRAC.

Subsection 47(3) requires reports to be in the approved form and to contain any such information as required by the form.

AUSTRAC has released indicative AML compliance report questions to provide reporting entities with information as to the types of questions that will be contained in the first AML/CTF compliance report under the AML/CTF Act, regulations and Rules, and to seek feedback.

The AML/CTF compliance report is based on key elements of the AML/CTF Act, regulations and the Rules. The report is structured with questions grouped under section headings as follows:

1. Introduction/information
2. Correspondent Banking
3. Electronic Funds Transfer Instructions
4. Anti-money laundering and counter-terrorism financing programs
a. AML/CTF programs Part A
b. AML/CTF risk awareness training program
c. Employee due diligence
d. Compliance
e. Independent Review
f. AML/CTF programs Part B - Customer Identification Procedures

Permalink

ASIC reviews reverse mortgages

ASIC has conducted a review and urged the promoters of reverse mortgages to ensure their advertising and promotional material is clear and not misleading.

ASIC found five cases of misleading advertisements that made claims suggesting that reverse mortgages did not need to be repaid.

ASIC raised these concerns with the promoters of the advertisements. In each case the promoter took immediate steps to either withdraw or amend their advertising.

The statements used in the advertisements included:

• ‘There are no repayments’, ‘…no loan repayments ever’ and ‘No need to make repayments!!’.

Although reverse mortgages do not usually require the borrower to make regular repayments, they certainly require repayment. Typically, a reverse mortgage will need to be repaid when the home is sold or no longer occupied.

• ‘Centrelink payments aren’t affected’.

ASIC considered that this claim could be misleading as taking out a reverse mortgage may affect a consumer’s Centrelink payments, depending on their individual circumstances and how they use the money they receive.

Permalink