The fact that self-managed superannuation funds (SMSFs) are not reporting entities for the purposes of Anti-Money Laundering/Counter Terrorism Financing (AML/CTF) regulations makes them more likely to be used for money laundering and terrorism financing purposes.
The Association of Superannuation Funds of Australia (ASFA) made this claim in a submission to the Australian Transaction Reports and Analysis Centre (AUSTRAC), welcoming amendments to reporting rules ending the use of the so-called Simplified Trustee Verification Procedures (STVPs) by SMSFs.
ASFA said that while it recognised that the majority of SMSFs were fully compliant and managed in accordance with the legislative framework in which they operated, there had been historical instances of fraud and/or criminal abuse perpetrated through SMSFs.
“As such, we support the proposed amendments that will require reporting entities to conduct a full customer identification procedure when dealing with SMSFs,” the submission said.
