Managing Anti-Money Laundering (AML) obligations while meeting legislative requirements and AUSTRAC’s expectations continues to present significant challenges, even for well-resourced financial institutions.
Recent regulatory action highlights these challenges. As announced by AUSTRAC, Bendigo and Adelaide Bank has been required to address weaknesses identified in its money laundering risk management framework.
AUSTRAC has also commenced an enforcement investigation into whether the bank has complied with its obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
The action reinforces the regulator’s continued focus on robust AML compliance and serves as a reminder that established institutions are not immune to AML risk management failures.
AMLHUB has assisted more than 2,000 organisations with their AML programs and procedures and has observed that no two businesses face the same compliance challenges.
According to AMLHUB CEO Richard Manthel, “the key issues usually come down to three internal factors: AML expertise, resourcing levels, and risk culture.”
“Strong AML capability requires an AML Compliance Officer who can effectively implement and manage AML policies, procedures, and controls,” Mr Manthel said.
“Establishing an effective AML regime—where procedures are consistently followed and a strong compliance culture is embedded across the organisation—can be difficult to achieve and even harder to maintain.”
For smaller organisations, particularly those newly captured under the Tranche 2 AML reforms, navigating AML obligations can be especially complex and frustrating.
AMLHUB encourages all newly regulated entities to seek professional assistance. Developing AML Risk Assessments and Compliance Programs—and implementing them effectively across a business—requires specialist expertise, appropriate resourcing, and ongoing oversight to meet regulatory expectations.
“When we combine specialist expertise, support and practical and proven software, AMLHUB provides a comprehensive AML solution to companies captured under the new tranche 2 legislation,” Manthel says.
For real estate professionals soon to be captured under Tranche 2 legislation, the Bendigo case underscores the importance of having robust systems and expertise in place. Regulatory scrutiny is increasing — and no business is too small to fall under the spotlight.
