The Australian Transaction Reports and Analysis Centre (AUSTRAC) has issued a remedial direction to Australian Military Bank Ltd (AMB) for its poor AML/CFT compliance. An ongoing regulatory engagement with AMB helped AUSTRAC identify the deficiencies in AMB’s AML/CFT systems and controls.
AUSTRAC’s remedial direction requires AMB to have an independent auditor assess its ML/TF risks. It also requires the bank to improve its AML/CFT systems and controls and record keeping.
The bank must also implement appropriate KYC systems, ensure compliance with AUSTRAC’s reporting requirements and ensure that its senior management and board members are responsible for maintaining oversight. AUSTRAC has also asked AMB to appoint a second independent auditor to assess whether it has successfully addressed these compliance deficiencies.
Source: AUSTRAC