Perth Mint to be examined over AML/CTF ‘compliance concerns’

Authorised by the Australian Transaction Reports and Analysis Centre (AUSTRAC), the external auditor has been authorised to assess Gold Corporation’s compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) as well as the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) (AML/CTF Rules).

Trading as the Perth Mint, the Gold Corporation is a regulated entity subject to AML/CTF obligations.

AUSTRAC said it had identified “compliance concerns” following a period of engagement with the Gold Corporation.

The external auditor has 180 days to report to AUSTRAC and will investigate Gold Corporation’s compliance with:

• The requirement to have an AML/CTF program (along with compliance with part A of that program)

• The requirement to sustain an ongoing customer due diligence program

• Its obligations in reporting on suspicious matters
  
  
• maintenance of enrolment details within required time frames
  
  

AUSTRAC will be determining the extent of the auditor’s examinations, which will reportedly be at Gold Corporation’s expense.

The outcome of the audit will inform AUSTRAC whether further regulatory action is needed.

It also aims to assist Gold Corporation with its compliance with AML/CTF obligations.

Speaking of the move, AUSTRAC chief executive Nicole Rose said all businesses that are regulated by AUSTRAC “must comply with the obligations under the AML/CTF Act”.

“AML/CTF compliance requirements are in place to protect businesses, the financial system, and the Australian community from criminal threats,” Ms Rose stated.

“AUSTRAC does not hesitate to take action where a business that we regulate is failing to satisfy their responsibility to protect themselves and Australia’s financial system from criminal activity.

“We will continue to work closely with Gold Corporation to address compliance concerns.”

In November last year, AUSTRAC representatives warned a parliamentary committee that Australia is an “attractive destination for criminal proceeds”, particularly through its real estate.

Senators were told at the time that money laundering could further push up housing prices, but real estate lobbyists warned that counterattack measures could also shake the market.  

AUSTRAC CEO Serena Lillywhite told the Senate on 9 November 2021 that it would be “reasonable” to think money laundering could affect the property market.

“It has devastating impacts both in Australia and overseas and can be reasonably argued it is driving up property prices in Australia and locking many Australians out of owning their own home,” Ms Lillywhite told the committee.

[RELATED: Money laundering could fuel house price rise, government warned]