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FATF Mutual Evaluation Australia

FATF Mutual Evaluation Australia

Lessons for New Zealand's Reporting Entities from FATF Mutual Evaluation Australia.


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Stephen Bell - KPMG NZ - Partner

Lead Partner - Forensics

KPMG in New Zealand


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On 21 April 2015, the Financial Action Task Force (FATF) published the Mutual Evaluation Report on Australia. With New Zealand scheduled to be assessed by the FATF in 2018-19, the FATF’s evaluation of Australia is a valuable opportunity for policy makers and reporting entities to learn lessons from the Australian experience.

Key findings include:

  • The FATF report contains some positives for Australia, but also identified deficiencies in key areas, and identified improvements are needed for AML/CFT controls and supervision in the private sector.
  • The limited number of enforcement actions and lack of monetary penalties indicate a minimal impact on reporting entities not directly sanctioned.
  • Australia’s rules for customer due diligence and correspondent banking were found to be deficient.
  • Banks and other large institutions had a good understanding of the requirements, but small to medium reporting entities can improve.

Key findings for New Zealand

In this article, we also set out lessons that New Zealand reporting entities can take from the FATF’s findings which include:

  • Continued focus on PEP and beneficial ownership;
  • Focus on coverage of high risk businesses and professions such as lawyers, accountants, conveyancing practitioners and real estate agents; and
  • Resourcing challenge in meeting complex nature of risk based requirements of the AML/CFT Act 2009.

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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