For thousands of accounting and bookkeeping firms, Australia’s tranche 2 anti-money laundering and counter-terrorism financing (AML/CTF) reforms, which came into effect on 1 July, have introduced new compliance obligations.

Unlike financial services businesses, which have operated under AML/CTF requirements, many accountants are having to establish these processes for the first time.

That means developing an AML/CTF program, assessing the risks associated with their services and clients, conducting the required checks and – importantly – keeping evidence that demonstrates those processes are being followed.

Build an audit trail from the start

“The most important thing is documenting your evidence and having an audit trail,” says Corey Cacic, founder and CEO of eSignature and ID verification market leader Annature.

For an accounting practice, that means being able to demonstrate what compliance activity was undertaken, when it happened and who completed it. Rather than relying on spreadsheets, paper records or information across different systems, firms need a reliable way to maintain evidence over time.

Annature’s new AML/CTF module is designed to provide that central record, supporting firms to develop their AML/CTF program and risk assessment, conduct identity verification and AML screening, and maintain an audit trail of their compliance activity.

Apart from this firms need to know if every client requiring a check has been through the process, says Cacic.

“Everyone is doing the checks, but it doesn’t end there. Without connecting that information back to the practice management system, you don’t get that visibility,” he says.

Practice management integration is central to how the module supports firms. It integrates with accounting firms including Xero Practice Manager, FYI Elite and MYOB Practice Manager.

The integrations are designed to bring a firm’s client information into the AML/CTF dashboard, match it against verification and AML checks, and give firms a clear view of which clients have completed the required processes and which still need attention.

Make compliance part of the workflow

The module also helps firms manage compliance as an ongoing process, rather than a one-off exercise. Reviews are flagged when they are due, with the system recording when a staff member completes the review and creating an ongoing record of the firm’s compliance activity.

Cacic says Annature’s framework for establishing an AML/CTF program and completing risk assessments has been well received by firms. But he sees the connection with existing practice management systems as a key point of difference.

“For accountants new to AML/CTF, the practical benefit of this module is being able to build compliance into the way the practice already operates – with a clear record of what has been done, visibility over what still needs attention and evidence to demonstrate that the firm is meeting its obligations.”

Find out more

Annature is a CA ANZ Member Benefits partner. To book a one-on-one demonstration with a member from its on-shore Australian team, click here.