Proposed levy has banks seeing red
(15 June 2011 – Australia) A Government proposal to impose a new levy for anti-money laundering and counter-terrorism financing has been slammed by banks.
The Government has declared they have already spent more than A$1 billion to report suspicious financial transactions and have proposed the laws to impose a new multi-million-dollar annual levy on banks and other businesses that report suspicious financial transactions.
The Australian Financial Markets Association (AMFA) complains details in the bills introduced to parliament on May 12 show that its members will be forced to overpay for the levy in order to cross-subsidise small businesses.
That is because the government argues the anti-money laundering regulator, the Australian Transaction Reports and Analysis Centre, has to dedicate more resources to supervising big businesses rather than small ones.
Consequently, domestic and foreign banks will be contributing about A$11.5 million of the A$29.6 million levy.
The complaint is revealed in a submission to a Senate inquiry into the proposed laws.
Anti-money laundering and counter-terrorism financing laws introduced four years ago require banks, foreign exchange dealers and financial services firms -- known as 'reporting entities' -- to report anomalies in behaviour that could suggest involvement in criminal money laundering or the financing of terrorism.
Firms are required to verify the identity of customers before conducting business with them.
The Australian Financial Markets Association (AMFA) complains details in the bills introduced to parliament on May 12 show that its members will be forced to overpay for the levy in order to cross-subsidise small businesses.
That is because the government argues the anti-money laundering regulator, the Australian Transaction Reports and Analysis Centre, has to dedicate more resources to supervising big businesses rather than small ones.
Consequently, domestic and foreign banks will be contributing about A$11.5 million of the A$29.6 million levy.
The complaint is revealed in a submission to a Senate inquiry into the proposed laws.
Anti-money laundering and counter-terrorism financing laws introduced four years ago require banks, foreign exchange dealers and financial services firms -- known as 'reporting entities' -- to report anomalies in behaviour that could suggest involvement in criminal money laundering or the financing of terrorism.
Firms are required to verify the identity of customers before conducting business with them.
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