The FATF's mutual evaluation of Australia
What is the FATF?
The Financial Action Task Force on Money Laundering (FATF) is an inter-governmental body whose purpose is to develop and promote national and international policies to combat money laundering and terrorist financing. The FATF was established in 1989 by the G7, and Australia was a founding member. The FATF currently has 33 members, of which two are regional organisations.
The FATF recommendations on money laundering and terrorist financing
In 1990, the FATF first issued 40 Recommendations on money laundering. The 40 Recommendations have since been revised twice, in 1996 and 2003. The 2003 revised recommendations are the international anti-money laundering (AML) standard and extended the scope of recommended AML measures to a wider range of industries, including businesses and professions outside the financial sector.
Following the terrorist attacks on the United States on 11 September 2001, the FATF issued 8 Special Recommendations on Terrorist Financing. A ninth Special Recommendation was added in 2004. The Special Recommendations build on the measures outlined in the 40 Recommendations and are the recognised international counter-terrorist financing (CTF) standard.
FATF mutual evaluation of Australia
As a member of the Financial Action Task Force (FATF) on Money Laundering, Australia has agreed to undergo periodic assessments of its anti-money laundering and counter-terrorism financing (AML/CTF) system against the international standards issued by the FATF.
Australia was last reviewed in 2005. The process for the next review will likely commence in 2013, and will be Australia’s fourth review. The standards by which Australia will be evaluated are the FATF 40 + 9 Recommendations. The process will also require all major stakeholders in the Australian AML/CTF sphere, such as the Department of Foreign Affairs and Trade and AUSTRAC, to collaborate with the Attorney-General’s Department on Australia’s response to FATF.
For further information about FATF’s 40 + 9 Recommendations and for a copy of Australia’s 2005 mutual evaluation please visit the FATF website.