What are the ramifications of not complying?
Why Complying Matters
Complying with Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act isn't just about avoiding penalties—it's about protecting Australia's financial system from criminal abuse and preventing your business from being exploited by criminals.
If you provide designated services under the AML/CTF Act, these consequences apply to your business.
Understanding AML/CTF Non-Compliance Consequences
Non-compliance with AML/CTF obligations carries serious consequences:
Civil penalties: AUSTRAC can impose significant civil penalties for breaches. The maximum civil penalty for a company for each contravention of the AML/CTF Act is $21 million.
Criminal prosecution: Certain breaches constitute criminal offenses punishable by imprisonment and/or significant fines. This includes intentional breaches of core obligations or providing false or misleading information.
Enforceable undertakings: AUSTRAC may require you to enter enforceable undertakings committing to specific remedial actions, compliance reviews, or enhanced reporting.
Reputational damage: Compliance failures, particularly if publicly disclosed or prosecuted, can severely damage your professional reputation, client trust, and business viability.
Operational disruption: Regulatory investigations and enforcement actions consume significant management time and resources.
License or registration implications: In some professions, AML/CTF breaches may affect your professional registration or licensing.
Civil liability: You may face claims from clients or third parties who suffer losses due to your compliance failures.
Beyond these direct consequences, non-compliance exposes your business to being exploited by criminals, potentially making you complicit in serious crimes including money laundering or terrorism financing.
Further information can be found here: Consequences of not complying | AUSTRAC
Disclaimer: This document provides general information and is not legal advice. Consult legal advisors and AUSTRAC guidance when developing your compliance framework.
Visit: www.austrac.gov.au