The Australian Prudential Regulation Authority (APRA) and the Australian Transaction Reports and Analysis Centre (AUSTRAC) have signed a Memorandum of Understanding (MoU) to facilitate cooperation and the exchange of information between the two regulators.

The MoU recognises the importance of cooperation between APRA and AUSTRAC to promote confidence in the integrity of the Australian financial system.

AUSTRAC is Australia’s anti-money laundering and counter-terrorism regulator, and specialist financial intelligence unit. Originally established to administer the Financial Transaction Reports Act 1988, today it operates simultaneously under that Act and the recently implemented Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

APRA is the prudential regulator of the financial services industry overseeing banks, credit unions, building societies, general insurance and life insurance companies, friendly societies and most members of the superannuation industry.

The two agencies have agreed to provide each other with assistance in relation to the exchange of information, appropriate referral of matters and cooperation in regulation, compliance and enforcement, consistent with relevant laws.

APRA Chairman Dr John Laker said the MoU, which follows the introduction of the AML/CTF Act permitting AUSTRAC to exchange information with the prudential regulator, will enable on-going collaboration between the two agencies.

"The recent passing of the AML/CTF Act has made it possible for Australia’s prudential regulator and the anti-money laundering regulator to set up more formal arrangements for closer cooperation and exchange of financial transaction reports information," Dr Laker said.

AUSTRAC Chief Executive Officer, Neil Jensen, said the MoU signing is an important step towards countering money laundering and the financing of terrorism.

"AUSTRAC continues to work in partnership with more than 30 agencies across Australia to counter money laundering and terrorism financing. This important partnership with APRA will have a significant impact on the identification and investigation of criminal activity facilitated through the financial sector," Mr Jensen said.

A joint AUSTRAC-APRA Co-ordination Committee, co-chaired by senior executives from each agency, will be established to develop and maintain the close working relationship envisaged within the MoU.

The MoU is available on the APRA website at www.apra.gov.au/aboutApra/ and on the AUSTRAC website www.austrac.gov.au  

For enquiries contact.

APRA: Stuart Snell 02 9210 3384 or 0407 250 276

AUSTRAC: Emma Diffen 03 8636 0554