AML/CTF Compliance

INTERCASH PTY LTD is an independent remittance dealer entered on the AUSTRAC Remittance Sector Register, pursuant to subsection 75C(2) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

Introduction

InterCash Pty Limited aims to prevent, detect and not knowingly facilitate money laundering and terrorism financing. InterCash does this to protect the company’s reputation and to comply with relevant legislation (AML/CTF Act). In so doing, InterCash adheres to the following principles and procedures:

1. Identify the designated services provided:

Designated services provided by InterCash are ‘gambling services’ and ‘money services’.

InterCash is considered a ‘gambling service’ as it exchanges one currency for another, exchanges gaming chips or tokens for money, pays out winnings for a game (involving chance or skill) that is played for money, and does so in the course of carrying on a business.

InterCash is considered a ‘money service’ as it provides currency dealing or exchange, conducts more than $1000 in money service activity with any one person on the same day, and provides money transfer services in any amount.

2. Identify the AML/CTF risk area/behaviour associated with the designated services provided:

In both gambling services and money services, money laundering activity involves use of money transfers to establish a verifiable transaction (payout) that is used to disguise the origin of the money, and/or give an appearance that the money has been acquired as a prize that has been won as a result of “normal” gambling activity.

As stated in the MSB (Money Services Businesses) hand book; "Money is ‘laundered’ to conceal illegal activity, including the crimes that generate the money itself, such as drug trafficking. Money laundering conceals the source of illegal proceeds so that the money can be used without detection of its criminal source."

3. Assess the AML/CTF risk posed:

The AML/CTF Rules state that in identifying its ML/TF risk a reporting entity must consider the risk posed by the following factors:

  • its customer types, including any politically exposed persons;
  • the types of designated services it provides;
  • the methods by which it delivers designated services; and
  • the foreign jurisdictions with which it deals.

The risk level of AML&CTF activity for InterCash is assessed as low.

4. Collect and verify the identity of persons receiving the services:

In the case of an individual, InterCash must have a program/process in place to collect and verify the identity of any person who requests or completes a transaction. The information must consist of:

  • the customer’s full name;
  • the customer’s date of birth; and
  • the customer’s residential address.

This information must be collected using reliable sources.

AML/CTF Rules provide for a “safe harbour” identification process for low risk customers. Safe harbour identification consists of: verifying the customer’s name, residential address and date of birth from:

a) an original or certified copy of a primary photographic identification document e.g.drivers licence or passport (with photograph);

b) an original or certified copy of a secondary identification document e.g. Australian Taxation Office assessment notice (less than 12 months old), council or utility bill (less than 3 months old), government issued notice for the provision of a financial benefit (less than 12 months old).

Responding to discrepancies

Occasionally InterCash may encounter a discrepancy with the documentation produced by customers or insufficient documentation to meet AML/CTF requirements.

The AML/CTF Rules require InterCash to have a program/process in place that will ensure InterCash are “reasonably satisfied that the customer is the person that he or she claims to be”.

InterCash’s approach involves:

  • not proceeding with a transaction until satisfactory identification is produced
  • considering grounds for submitting a suspicious matters report to AUSTRAC

5. Implement programs/procedures to mitigate the risk of money laundering/terrorism financing:

InterCash has implemented an AML/CTF Program to ensure it has programmes and procedures in place to mitigate the risk of money laundering and terrorism financing. Procedures coincide with relevant legislation regarding:

  • customer identification and verification,
  • identification discrepancy procedures,
  • record keeping procedures,
  • privacy procedures,
  • reporting procedures for international transactions, threshold transactions, and suspicious activity, and
  • awareness of penalties for non-compliance.

6. Ensure oversight of the program senior management and implement an independent review process:

InterCash have implemented a compliance officer to implement and maintain the program, and InterCash’s senior management provide continual oversight of the AML/CTF Program.

To comply with AML/CTF Rules requiring an independent review of InterCash’s AML/CTF Programme, InterCash will use a “checklist” approach to ensure all necessary components are included, implemented, and in accordance with state and federal legislation as well as AUSTRAC’s rules and guidelines. This review will be performed annually.

7. Implement procedures to ensure the information and records accumulated as a result of the AML/CTF programs comply with privacy, secrecy and storage requirements:

Record Keeping

In accordance with legislation, InterCash will keep records of:

  • Its AML/CTF Programme, and any changes to the program
  • Minimum KYC information of customers
  • Transactions, particularly international transactions, those over AUD$10,000, and any suspicious transactions
  • Reports to AUSTRAC

InterCash will strictly follow Privacy legislation, and records will be readily accessible, kept electronically and kept for a period of 7 years.

Privacy and Secrecy

InterCash have obligations under the Privacy Act 1988. The obligations only apply in relation to AML/CTF activities, that is, information related to suspicious activity reports, records of threshold transaction reports (if any) and international transfer instruction reports need to be kept secure, up-to-date and de-identified when no longer needed.

As such, InterCash may collect personal information in order to comply with these obligations. This personal information will be kept secure at all times, and only passed on to external bodies if required by law.

8. Suspicious Matters reporting program/process:

Suspicion means InterCash suspects that a customer is using or seeking to use our financial services (referred to as "designated services" in AML/CTF legislation) to launder money or finance terrorism, and one of the following:

  • that the customer is not the person they claim to be
  • that information Intercash has concerning the provision, or prospective provision, of a designated service
  • May be relevant to investigation or prosecution of tax evasion, or attempted evasion
  • May be relevant to investigation or prosecution of an offence against a law of the Commonwealth or of a State or Territory
  • May be of assistance in the enforcement of the Proceeds of Crime Act 2002
  • that the provision, or prospective provision, of the service is preparatory to the commission of an offence connected to financing of terrorism
  • that the provision, or prospective provision, of the service is preparatory to the commission of an offence connected to money laundering

InterCash must report suspicious matters within 3 business days, or if particularly serious, within 24 hours of forming the suspicion.

9. Threshold Transaction reporting program/process:

Threshold transactions are defined as transactions of $10,000 or more where the transaction utilises “physical currency” or “e-currency”.

InterCash must report threshold transactions within 10 business days.

10. International Funds Transfer Instruction reporting program/process:

International Funds Transfer Instructions are defined as an instruction transmitted into or out of Australia for a transfer of money or property. Currency involved could be Australian dollars or a foreign currency.

InterCash must report International Funds Transfer Instructions within 10 business days.