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FAQs - AML Roles & Responsibilities
Who can be a Compliance Officer?
The Compliance Officer (also called the AML/CTF Compliance Officer or “AMLCO”) must be someone at management level in your firm, with authority, access to resources and the power to act on AML/CTF matters.
They must also be a “fit and proper person” (honest, of sound judgement, not bankrupt, no serious regulatory or criminal history)
What is an AMLCO?
An AMLCO (Anti-Money Laundering/Counter-Terrorism Financing Compliance Officer) is the person your business appoints to oversee and co-ordinate your day-to-day compliance with your AML/CTF program. They coordinate compliance, liaise with AUSTRAC, report to senior management and ensure your firm meets its obligations.
Can the role of AMLCO be outsourced?
Yes. In some cases a firm can outsource the role or appoint an external person, but that person must still meet the eligibility requirements (management level, fit and proper, Australian resident if required) and be empowered to act.
If you use an external officer you must ensure they have sufficient authority, resources and access to oversee your AML/CTF program properly.
At AML Sorted we recommend that you do not outsource the AMLCO role, however, our support will take away the “heavy lifting” for you; this is what our team do day in day out. Please read more HERE.
If your firm does decide to outsource, remember that the legal responsibility is still your firm’s responsibility. AUSTRAC says:
"If you outsource AML/CTF functions, you remain responsible for complying with your obligations under the AML/CTF Act and AML/CTF Rules. Generally, your business will remain legally liable for any breach of its AML/CTF obligations, even under outsourcing arrangements, and will incur any penalty that arises from a breach."
What does a Compliance Officer need to do?
A Compliance Officer needs to:
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Oversee and coordinate the firm’s AML/CTF program on a day-to-day basis.
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Make sure your policies, procedures and systems are in place and working in line with your risk profile.
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Report to senior management (or the governing body) at least annually on how the firm is coping with its AML/CTF obligations.
Be the point of contact with AUSTRAC, and ensure record-keeping, training and monitoring are carried out.
Can I be both the principal lawyer and the Compliance Officer?
Yes, especially in a small firm you can hold both roles, provided you meet the eligibility criteria for the Compliance Officer role (management level, fit and proper, able to devote the necessary attention to compliance).
It’s important you ensure you give the compliance function the resources and independence it needs (even if you are the principal).