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Home Forums Anti-Money Laundering and Counter-Terrorism Financing I want to accept digital currency like Bitcoin in my new business. Do I need an AML/CTF program?

This topic contains 2 replies, has 2 voices, and was last updated by  Andrew Ham 2 years, 9 months ago.

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  • #4698 Reply

    Andrew Ham
    Member

    It depends on the business you intend to operate.  AUSTRAC has stated that it does not consider digital currencies, of themselves, to be a designated service that therefore triggers AML/CTF obligations.  Therefore, you do not need an AML/CTF Program just because you accept digital currency as an alternative to cash or credit.  However, if you wish to use digital currencies for a purpose other than simple payment for goods and services, such as a mechanism for the remittance of funds across borders, then if that other particular purpose is a designated service the AML/CTF legislation may well apply.  You may also need an Australian Financial Services Licence, if your activities fall within the scope of that regime too (for example, as a non-cash payment facility).

     

    Contact our team of experienced AFSL and AML/CTF lawyers to discuss how the AFSL and AML/CTF laws affect your plans to accept digital currency.

     

    Author: Andrew Ham

    #4725 Reply

    Divya Vasantham

    Thank you for the reply. Actually I too want to accept the digital currencies in my new business. I don’t have that much idea about AML/CTF program.

    <span style=”color: #262626; font-family: Verdana, Geneva, sans-serif; font-size: 11px; line-height: 20px; text-align: justify;”>Will AML application interface component integrated with Oracle FLEXCUBE AML </span><span style=”color: #262626; font-family: Verdana, Geneva, sans-serif; font-size: 11px; line-height: 20px; text-align: justify;”> helpful for this situation?</span>

    #4726 Reply

    Andrew Ham
    Member

    Hi Divya,

    Thanks for your question.

    Before you can assess software solutions you need to determine whether your business is offering a designated service under the AML/CTF laws.  These are outlined in section 6 of the AML/CTF Act.  Further guidance can be found on the AUSTRAC website.

    We are not familiar with the Oracle product, however it is worth noting that while IT platforms can facilitate customer due-diligence and compliance with AML/CTF requirements,  technology can only provide some of the solution in meeting your AML/CTF obligations, (if any).  It is never the complete answer.  We recommend you visit the AUSTRAC website to get a clearer picture.

    Please feel free to contact our Financial Services Team if you require further information or more detailed advice.

    Author: Andrew Ham

    Co-contributor: Greta Walters

     

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