Foreign Exchange (FX) Money Remitters
We can assist you in establishing and maintaining a money remittance business in Australia. Money remittance is a type of OTC foreign exchange business, where you (the remitter) are usually considered a product issuer.
Do Money Remitters need an AFSL?
Usually, the answer is yes. This is because an overseas transfer of money doesn't always occur immediately. There are some exceptions to this rule, but they are not as common as some people realise. Go to our OTC FX and Derivatives page for guidance about what FX remitters need to consider from a set-up and ongoing operation perspective.
The Money Remitters Compliance Forum
We run a face-to-face compliance forum intended for money remitters in Sydney. Specifically, it’s for compliance professionals and Responsible Managers of remittance companies. If you are a compliance or legal services provider there’s an expectation that you will bring along at least 2 of your clients if you want to come along. The dates of the forum are calendar events for the Australian Remitters and Currency Providers Association – become a member here. If you’re interested in attending, contact Paul Derham to find out more.
Money Remitters and Money Laundering
A key issue with money remittance is the need and effort required to prevent money laundering. A number of countries including Australia have adopted Anti Money Laundering (AML) / Counter Terrorism Financing (CTF) regulatory regimes for remittance providers. Regulatory regimes in this sector are relatively new and their effectiveness is still being evaluated. These regulatory regimes are intended to prevent certain kinds of conduct, rather than to protect or foster the remittance system. The Australian Institute of Criminology has published information regarding the legalities with money laundering and remitters.
Holley Nethercote can help you examine the operation of alternative remittance systems in Australia and consider the risks that they entail for illegal movement of the proceeds of crime and financing of terrorist activities. We can suggest measures that could be put in place to address these risks and work with you to ensure that your organisation's operations are not compromised by money laundering and that your systems remain compliant with the regulatory regimes.
Contact our office now to see how we can assist you.