AUSTRAC accepts EU from BoQ

AUSTRAC has accepted an Enforceable Undertaking (EU) from the Bank of Queensland Limited (BoQ) to improve its compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.

This followed a compliance inspection by AUSTRAC which identified concerns relating to the adequacy of BoQ’s AML/CTF systems and controls.

The AML/CTF Act regulates financial, gambling, remittance and bullion sectors that provide designated services listed in the AML/CTF Act and AUSTRAC is Australia’s AML/CTF regulator and financial intelligence unit.

AUSTRAC said in the announcement that the EU would bind BoQ to an ongoing remedial action plan to improve its AML/CTF program, which AUSTRAC would monitor to ensure it is undertaken within agreed timeframes.

As part of the EU, BoQ will engage an external auditor who will report back to AUSTRAC.

AUSTRAC’s action also coincided with separate regulatory activity by the Australian Prudential Regulation Authority (APRA), which has accepted a court EU in relation to BoQ’s risk management practices and risk culture.

AUSTRAC chief executive, Nicole Rose, said that the two regulators had ensured the other had visibility of the progress of each of their actions against BoQ, as they worked in parallel on their separate investigations.

“The actions undertaken by AUSTRAC and APRA in relation to BoQ highlight whole of government efforts to maintain the integrity of Australia’s financial systems,” Rose said.

“Businesses which do not have a strong AML/CTF program in place are vulnerable to exploitation by criminals, which is why AUSTRAC has been working with BoQ to harden their processes.

“I am pleased with BoQ’s cooperation over the past six months, and their commitment to taking remedial action to ensure they meet their obligations under the AML/CTF Act.”