ISI scores some wins for industry over anti-money laundering laws

ISI chief executive Vance Arkinstall says he was encouraged by the amendments recommended by the Foreign Affairs, Defence and Trade Select Committee on the Anti-Money Laundering and Countering Financing of Terrorism bill.

This included changes around adopting a more risk-based approach; harmonisation with Australia; and acknowledgement that adequate time is needed between the enactment of the legislation and implementation to give firms time to prepare.

However, the committee did not look to have moved on "carving out" life insurance from the anti-money laundering legislation, which was the ISI's fourth key concern. The Bill passed its second reading in Parliament last week.

"It's a bit of a shame that we don't appear willing to adopt a carve out like Australia, which effectively removes the Mum and Dad type of policies which really contain no possible element of money laundering. But for reasons that are not entirely clear, they seem to have overlooked that," Arkinstall says.