Anti-money laundering questions and answers
1. What are anti-money laundering laws?
The Government introduced the Anti-Money Laundering and Counter Terrorism Financing (AML/CTF) Act 2006. This law requires businesses that provide certain financial services to identify their customers before providing a service, and to report both suspicious transactions.
2. What is money laundering?
Money laundering is the process criminals use to disguise the source of illegally obtained money so that it appears to have come from legitimate sources.
3. What is terrorist financing?
Terrorist financing is the act of providing financial support to terrorists or terrorist organisations to enable them to carry out terrorist acts.
4. What do these laws set out to do?
Australia has implemented these laws to improve its existing anti-money laundering and counter terrorism financing system and bring it in line with international standards. The laws will make it difficult for criminals to use the profits of crime and terrorists to receive money for use in terrorist acts.
5. What are the requirements of the legislation?
When applying for a new product or service, individual investors must provide verification information such as a certified copy of a passport or driver’s licence. For non-individuals such as companies and trusts, more information will be required, for example a certified copy of an ASIC certificate of registration or trust deed.
6. What are the products and services covered by the laws?
All financial services providers offering products covered by the legislation, including managed investments, superannuation and shares in a listed company or trust, must meet the customer identification requirements. As such all AMP Capital products are covered.
7. How will AMP Capital safeguard information?
All financial services providers covered by the legislation are required to keep client information in a safe and secure environment, as required by the AML/CTF Act and the Privacy Act 1988 (Privacy Act). The Privacy Act covers the collection, use, disclosure, quality and security of personal information.