AML/CTF series: What reports and records will AUSTRAC expect from law firms?
Reporting and recordkeeping are core pillars of the anti-money laundering (AML) and counter-terrorism financing (CTF) regime.
Reports required for reporting entities will include:
Suspicious Matter Reports (SMRs): required whenever a suspicion arises that a client or transaction is linked to crime, terrorism or money laundering. The form must be lodged within 24 hours for terrorism financing suspicions, and 3 business days for other matters such as money laundering.
Threshold Transaction Reports (TTRs): required for certain large cash transactions (rare in legal practice but possible).
Annual Compliance Report: a yearly report to AUSTRAC about your firm’s AML/CTF program and compliance.
Reporting entities must also keep records to comply with AML/CTF obligations, including:
customer due diligence records;
risk assessments.
transaction records; and
copies of reports submitted.
Many law firms already store client documents in practice management systems. The challenge is linking AML/CTF records, such as risk ratings, ID verification, escalation notes, to the client file. Law firms should start considering and planning whether their practice management system or an external AML/CTF tool will hold these records.
We are well placed to assist with your firm’s AML/CTF requirements – give our AML/CTF team a call.
Paul Gray
Principal
T 03 5225 5231 | M 0414 195 886
E pgray@ha.legal
Hugo Le Clerc
Senior Associate
T: 03 5225 5213 | M: 0438 089 334
E: hleclerc@ha.legal
