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AUSTRAC funding issue not dampened by auditor report
With the Association of Superannuation Funds of Australia (ASFA) amongst a number of financial services providers questioning the funding of Australian Transaction Reports and Analysis Centre (AUSTRAC), an Australian National Audit Office (ANAO) report has acknowledged that the effectiveness of the organisation is difficult to quantify.
ASFA has consistently lobbied that the financial services industry and superannuation funds should not be levied to pay for AUSTRAC's operations, and the ANAO report will do little to dampen those claims.
The Auditor-General's report — which was tabled in Parliament this week — found that "while AUSTRAC's financial intelligence is highly valued both domestically and internationally, its effectiveness in terms of countering money laundering and the financing of terrorism and other forms of serious and organised crime is not readily quantifiable".
Data on the impact of AUSTRAC's financial intelligence regarding the operations of law enforcement agencies was limited, the report said.
However it said the Australian Taxation Office and DHS-Centrelink had reported they used AUSTRAC's financial intelligence in more than 2700 cases in 2011-12, and saved more than $255 million.
ASFA and some other financial services organisations have argued that they do not derive a direct benefit from AUSTRAC's operations, and so should not be levied by the Government to fund its operations.
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Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
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