New cash rules 'no big deal for advisers'
New anti-money laundering rules will draw a line in the sand for banks and other big financial services providers but will be of little concern to financial advisers, one compliance expert says.
Monday, March 27th 2017, 5:59AM
by Susan Edmunds
From November banks and other financial institutions will have to give police customer details for all domestic cash transactions over $10,000 and international cash transactions over $1000.
At the moment they must report only “suspicious” transactions. Last year, there were almost 9000 reports worth $6 billion.
The new rule has raised privacy concerns but Gavin Austin, of compliance firm ABC, said it seemed to be mainly a move to clarify a grey area for the big providers.
“These are new things to make it clear what banks are required to provide,” he said.
There would be no change for financial advisers, he said. “It just makes it clear so there’s no wiggle room for providers to say 'we can’t do that because the legislation doesn’t prescribe that we can ask for that information', or 'the Privacy Act says we can’t'. They want to tidy up that grey area and say 'you have to do that it’s now the law'.”
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