Jack Haldane, director of supervision for the Australian Transaction Reports and Analysis Centre (AUSTRAC), criticized banks in a recent panel for over-relying on consultants and experts to fulfill their reporting requirements, adding that many institutions fail to understand their own reporting programs because they are implemented solely by third parties. "These are resources that are there to supplement what you’re already doing, not replace or outsource what that compliance function should be doing," he said.
AUSTRAC called out banks for deficiencies in their AML/CFT programs, including filling out reports incorrectly, failing to file them promptly, or lacking understanding of their responsibilities under AML/CFT regulations. The regulator also stated that it would be paying close attention to governance and would spend more time going through board papers and reports from senior management. According to AUSTRAC, firms that document their arrangements well will be "set up for success."
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