Compliance Crossroads: Managing Privacy Requests And Tipping Off Risks As An AML/CTF Reporting Entity

Reporting entities are already familiar with the real challenges that can arise when seeking to meet their customer due diligence and ML/TF risk management obligations without engaging in "tipping off". While recent changes to the "tipping off" restrictions may have lessened those challenges, this may in turn have created new complications when the customer requests their personal information.

This article notes the intersection between the Australian AML/CTF and privacy frameworks and gives guidance to reporting entities on managing competing risks in that context.

Customer due diligence and personal information

The need for robust ongoing customer due diligence (OCDD)should be well understood as a cornerstone for any reporting entity that is serious about identifying, mitigating and managing its financial crime risk and meeting its compliance requirements under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF Act).