Australian Transaction Reports and Analysis Centre (AUSTRAC) has issued an infringement notice to State Street Bank and Trust Company for not reporting international funds transfers. Monetarily, the notice covers around $1.24 million. AUSTRAC is now guiding State Street to ensure its compliance with IFTI reporting regulations.
Under Australia’s AML/CFT Act of 2006, financial institutions must report international funds transfer instructions (IFTIs) to AUSTRAC within 10 business days of the initiation of a transaction. This supplies threat intelligence to AUSTRAC so it can better fight against cross-border financial crimes including fraud, tax evasion etc.
In 2019, AUSTRAC-regulated businesses reported 155 million IFTIs to the regulator. AUSTRAC believes that more and more businesses must incorporate AML/CFT compliance and risk management in their daily practices. This will protect them from financial criminals.