FBAA chief executive officer Leo Gagic (pictured) said the regulator had listened to the industry’s concerns. “The original guidance left some uncertainty around whether commercial and asset finance brokers could face significant compliance obligations that were never intended to apply to their businesses,” Gagic said.
“Based on its latest response, it’s clear that AUSTRAC has listened to our concerns and worked through the issue. Their latest clarification gives us confidence that we’re moving towards formal confirmation that ordinary commercial and asset finance broking activities are not required to address these additional requirements.”
Brokers should still wait and see
Brokers involved in broader corporate financing transactions, including capital raising and business acquisitions, may still attract AML/CTF obligations and should seek specific advice on their circumstances. However, they assured continued support for lenders in meeting their own AML/CTF obligations through existing lender relationships and processes.
MFAA has published practical guidance for members covering the current regulatory position, AUSTRAC’s expectations, and recommended steps, including documenting the basis for any position adopted, retaining supporting records, and reviewing that position as additional guidance is released. Brokers unsure about their specific obligations should consult their association or seek professional legal advice.
Gagic welcomes the regulator’s willingness to address its concerns. “Strong anti-money laundering protections are essential, but regulation needs to be clear about who it applies to and what businesses must do,” he said. “We’ll continue working with AUSTRAC until the position is formally confirmed and brokers have the clarity they need.”
