Anti-money laundering bill to place further burden on accountants, warns CPA
The professional body is disappointed by the limited consultation undertaken on the significant and complex changes contained within the bill.
CPA Australia said while it supports the purpose of amendments to the anti-money laundering and counter-terrorism financing laws, it is “disappointed” the government did not follow best practice and release an exposure draft of the bill for public consultation.
The Anti-Money Laundering and Counter-terrorism Financing Amendment Bill 2024 was introduced to Parliament yesterday by the Attorney-General.
The professional body has previously warned government of the regulatory obligations accountants must already adhere to, which will increase with the proposed obligations of the AML/CTF Amendment Bill.
CPA Australia’s regulation and standards lead Belinda Zohrab-McConnell said CPA Australia has always supported strong, proportionate laws to prevent money laundering, but more care needs to be taken for accountants.
“Accountants already face a huge amount of regulatory obligations, including some that are already based on anti-money laundering requirements such as the Tax Practitioners Board’s requirement for tax agents to verify client identities,” she said.
“In addition to this bill, the government will need to write rules that provide the detail for the broader obligations set out in the bill.
“These rules must avoid duplication with existing legal and professional obligations accountants face to reduce the burden on the profession and unnecessary compliance costs.”
The bill represents a significant and complex change that is the reason behind the professional body’s call for public consultation.
For accountants to not be bombarded with a “mountain of regulatory obligations”, CPA Australia requested for more support and guidance be given to accountants when trying to navigate these.
“Education, tools and ongoing guidance will be critical to the successful implementation of these laws,” Zohrab-McConnell said.
The government aims to protect the Australian community from financially enabled crime by strengthening the existing framework to better address evolving threats posed by money laundering and terrorism financing.
Zohrab-McConnell said outside of the government’s poor practice and unnecessary increased regulatory obligations it will bring accountants, the bill will aid the fight against anti-money laundering.
“The AML regime will help reduce the risk for accountants who are unknowingly exploited by criminals,” she said.
“These new laws will complement existing laws that continue to target those that knowingly conspire with criminals to launder money.”
Accountant’s clients should not be “surprised” when an obvious increase in fees is applied, said Zohrab-McConnell.
“The proposed obligations will come with an additional compliance cost for accountants, so don’t be surprised if your accounting fees and tax return fees go up over the next few years as accountants tackle these and other new regulatory obligations,” Zohrab-McConnell said.
Anti-money laundering software provider First AML has welcomed the introduction of the bill.
According to First AML, money laundering is a significant issue in Australia with an estimated $10–$15 billion from the proceeds of crime being washed each year.
First AML CEO Milan Cooper said the new legislation was a “big step in the right direction.”
“The world is a risky place and criminals will use whatever means they can to move dirty money around and hide it from the authorities,” he said.
“This bill addresses the loophole that has exempted accountants, lawyers and real estate agents from scrutiny and finally brings Australia into line with the world’s best practices.”
