The AML/CTF Act has recently been amended to clarify how penalty units are accrued for businesses that haven't enrolled with AUSTRAC. Businesses that provide designated services (also known as Reporting Entities) must enrol with AUSTRAC within twenty-eight (28) days of commencing to provide designated services (section 51B of the AML/CTF Act). Businesses that have commenced providing designated services for at least twenty-eight (28) days but have failed to enrol with AUSTRAC will accrue daily penalties. The daily penalties will continue to accrue until the business enrols or ceases providing designated services (whichever occurs first).
A business may be liable for a penalty of up to twelve (12) penalty units for individuals or sixty (60) penalty units for bodies corporate, for each day the business remains unenrolled. Currently each penalty unit is equivalent to $313 meaning businesses can face up to a maximum penalty of $3,756 per day for an individual or $18,780 per day for bodies corporate.
Further Reading
- Enrol with AUSTRAC before 9 November 2023 to avoid increasing penalties
- AML/CTF: Do I need to comply?
- Remittance and Money Transfer Providers
- Digital Currency Exchange Providers
- Credit Licence Holders: Ongoing Compliance Solutions
- Comply or be Fined – AUSTRAC Cracks Down on Reporting Entities. Find out how you can Avoid a Hefty Fine!
- Reminder to Update your Registration Details with AUSTRAC
