What is the consequence if an agent fails to verify the identity of a client as required under AML/CTF legislation?
Correct Answer
B) Civil penalty proceedings and other AUSTRAC enforcement, including large fines
Failing to carry out required customer identification is a breach of the AML/CTF Act, a federal law enforced by AUSTRAC. AUSTRAC can seek civil penalties in the Federal Court, with very large maximums, and can also use infringement notices, enforceable undertakings and remedial directions.
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