The Finance Brokers Association of Australia (FBAA) has requested an urgent meeting with AUSTRAC to discuss the practical implications of the recent AML/CTF reforms and their potential impact on brokers and intermediaries.

CEO Leo Gagic said while brokers should not rush into making major changes at this stage, there is genuine concern around whether brokers are captured by the recent AML/CTF reform measures and any specific obligations that may apply to broker businesses.

“Our industry is keen to understand its compliance responsibilities and ensure we are appropriately preparing for any regulatory changes,” he said.

FBAA regulatory compliance specialist David Carson said the association requested information prior to the July 1 changes because “the way their guidance has been drafted would appear that commercial asset finance broking could be defined as a designated service which would bring it under AML/CTF rules.

“We are not convinced it was ever the legislative intent to capture this activity so we remain hopeful that we can obtain clarification that it is not captured.”

Mr Gagic said AUSTRAC needed to allay the “significant uncertainty and confusion across the broker community regarding whether these changes apply to our sector, and if so, explain the extent of the obligations that may arise.”

“We have contacted AUSTRAC again to seek definitive guidance on these matters, and we note that other industry associations have done so as well.”

He said the FBAA was committed to supporting Australia’s AML/CTF framework and wants to work collaboratively with AUSTRAC.

“It is important for our industry to uphold best practices, for the sake of brokers and our customers.”

Mr Gagic said he hopes to be able to clarify the situation around the changes soon and will update members as soon as he can.