Policy Update - December #2
New AML/CTF Rules
AUSTRAC has released new draft Anti-Money Laundering/Counter-Terrorism Financing (AML/CTF) Rules for consultation. These support the AML/CTF Act amendments passed by Parliament last month and cover:
AML/CTF programs
reporting groups (formerly ‘designated business groups’)
customer due diligence
travel rule
keep open notices (formerly ‘Chapter 75 notices’)
correspondent banking relationships.
FinTech Australia will make a submission and circulate further information to our Policy Working Group to help shape our submission before the consultation closes on 14 February 2025.
Updated ASIC Guidance for Crypto-Asset Holders
ASIC has reissued its Regulatory Guide 133 Funds Management and Custodial Services (RG 133) to provide the latest guidance to asset-holding Australian financial services licensees. Updates include good practices for crypto-asset holders (such as custodians of crypto-assets which are financial products), including maintaining robust information security controls and risk management processes.
CFR Review into Small and Medium Banks
The Council of Financial Regulators has this month released an issues paper: Review into Small and Medium Sized Banks. It invites stakeholders to provide their views on the competitive challenges facing these banks and how they might be addressed. FinTech Australia is gauging interest from members in submitting a response. Please reach out the policy team if this is of interest.
Other news:
The Future of Australia’s Payments System: In his speech at the AusPayNet Summit, Assistant Governor (Financial System) Brad Jones discusses the current state of Australia’s payments system, the future of the system, and the RBA’s role in it. Key priorities include the decommissioning of BECS by 2030, reducing merchant card payment costs, reviewing surcharging frameworks, and improving cross-border payments to meet G20 targets. Jones also emphasised industry cooperation to ensure Australia’s payment system remains efficient, innovative, and fit for the digital age.
We are working on these submissions:
Consumer Data Right Rules – Non-Bank Lending and Banking Data Scope Consultation: FinTech Australia is incorporating final member feedback into the submission, for lodgment this Thursday 19 December. Thank you to all who contributed.
Consultation Paper 381 (CP 381): Updates to INFO 225: Digital Assets: Financial Products and Services: FinTech Australia will be making a submission and will reach out to members through our policy working groups to participate before the submission deadline of 28 February 2025.
2025–26 Pre-Budget Submission: We will share a draft pre-budget submission in the New Year for member input and feedback.
We recently made submissions on:
Introducing Mandatory Guardrails for AI in High-risk Settings
CDR Rules: Consent and Operational Enhancement Amendments Consultation
See our recent submissions on our website.
FinTech Australia regularly makes submissions to consultations across a wide range of policy and regulatory issues. Communications about how to get involved in these processes are distributed to our Policy Working Group membership.
