The WA Auditor General, Caroline Spencer has tabled her report entitled Compliance Frameworks for Anti-Money Laundering and Counter-Terrorism Financing Obligation, in the Parliament.
Ms Spencer said her limited assurance review followed recent high-profile matters exposing significant control deficiencies in the banking and gambling sectors.
“As a result, my Office considered the potential exposure of State Government entities,” Ms Spencer said.
“The review provides a barometer on the standard of anti-money laundering and counter-terrorism financing compliance programs at eight entities which have obligations under the Anti-Money Laundering and Counter-Terrorism Financial Act 2006,” the Auditor General said.
She said the review identified varying levels of adequacy in the arrangements entities had in place to address their key anti-money laundering and counter-terrorism financing obligations under the Act.
“We reported 18 findings and three business improvement opportunities across six entities that require improvement to ensure they fully comply with Commonwealth legislation,” Ms Spencer said.
“The review informs Members of Parliament and the Western Australian community of some of the applicable obligations and the risks of not having sound compliance programs in place.”
The Auditor General said institutions should not only comply with the law but also do their part to reduce the likelihood and impact of money laundering and terrorism financing activity on their communities.
“Non-compliance and failing to adequately mitigate the risk of receiving, transferring and storing funds that facilitate serious crimes could result in significant reputational damage and financial consequences for the State,” Ms Spencer said.
“However, I am encouraged by the positive responses received from entities who have already started actioning shortcomings identified, and the seriousness with which the Western Australian Government is focused on this issue.”
She stressed that senior executives, Boards and Ministers would continue to be important to maintaining oversight of improvements made to address identified weaknesses and meet the evolving expectations of this regulatory framework.
The Auditor General’s 19-page report can be accessed at this PS News link.
