AUSTRALIA Trends and Developments Contributed by: Dennis Miralis, Kartia Zappavigna and Darren Pham, Nyman Gibson Miralis
Part One of the consultation addressed the need to simplify and streamline AML/CTF obligations, as recommended by a 2016 Statutory Review of the AML/CTF Act 2006. The review found that the regime was too complex, which made it dif - ficult for regulated entities to comply with their obligations. Part Two sought feedback on the tranche two reforms, which would extend the AML/CTF regime to “high-risk professions” or the “gate - keeper professions”, including lawyers, account - ants, trust and company service providers, real estate agents, and dealers in precious metals and stones (“Tranche two entities”). The result of the consultation process is the 2024 AML/CFT Bill, which will simplify, clarify and streamline the AML/CTF regime, while also extending it to the Tranche two entities. If the 2024 AML/CFT Bill is passed, not only will currently regulated entities need to adapt to significant reforms, but the number of entities covered by the regime is set to increase from 17,000 to 100,000. It will also impact companies that rely on the ser - vices of the Tranche two entities, as they too will in turn be required to comply with the standards of the AML/CTF regime NACC established and running On 30 November 2022, Parliament passed leg - islation establishing the NACC. This is an independent Commission that detects, investigates and reports on serious or systemic corrupt conduct in the federal public sector. It can also refer matters to the CDPP for criminal prosecution.
The creation of the NACC has assisted Aus - tralia in meeting the recommendations from the UNCAC Implementation Review Mechanism, pursuant to Chapter III (Criminalisation and law enforcement) of the UNCAC. Specifically with the recommendation that Australia continue the development of a comprehensive national anti-corruption action plan, which will include an examination of how to make anti-corruption systems more effective. Corruption is defined very broadly in the Nation - al Anti-Corruption Commission Act 2022 and includes any of the following by a public official: • breach of trust; • misuse of information; • abuse of office; or • something that adversely affects a public offi - cial’s honest or impartial exercise of powers or duties. The NACC has already received thousands of referrals since it officially commenced opera - tions on 1 July 2023. As of February 2024, it: • has 331 referrals under assessment including 11 under preliminary investigation; • is conducting 13 corruption investigations; and • is overseeing or monitoring 31 investigations by other agencies. While the focus of the NACC is the public sec - tor, this new Commission will ultimately have an impact on the businesses that work with the government. This can include companies working with or for Parliamentarians and their staff, federal agen - cies’ staff, or contract service providers to the Australian government. Private entities and
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