IMF found our Banks non compliant with prevention of the use of
banks by criminal elements in 2005/6!!!!
Attached letter is important re securitisation dated 12 July 2004.........must be to do
with that suppressed report Stephen Long has a copy of!
In 2005/2006, the IMF conducted an assessment of Australia under its Financial Sector Assessment Program (FSAP). A key part of the FSAP was an evaluation of APRA’s policies and practices for the prudential supervision of banks against the Basel Core Principles for Effective Banking Supervision. 1 The IMF’s detailed assessment of Australia’s compliance with the Basel Core Principles is being published separately. A separate paper was prepared by Treasury, in consultation with APRA and other Commonwealth agencies, addressing Australia’s adherence to these preconditions. This paper will be published separately by Treasury.
The material provided to the IMF was preparedas at September 2005. Since then, APRA’s supervisory procedures have evolved in some areas: in particular, APRA has finalised prudential standards dealing with Governance and with ‘Fit and Proper’. In addition, the Government has released a draft Bill dealing with Anti-Money Laundering and Counter-Terrorism Financing which addresses issues raised by the IMF.
Page 2 Assessment Summary - Principle 15 Prevention of use of the bank by criminal elements Materially Non-compliant
Principle 15: Banking supervisors must determine that banks have adequate policies, practices and procedures in place, including strict ‘know-your-customer’ rules that promote high ethical and professional standards in the financial sector and prevent the bank being used, intentionally or unintentionally, by criminal elements.
In addition to APRA, the Reserve Bank of Australia (RBA), established by the Reserve Bank Act 1959, regulates Australia’s payments system. The various statutes in place for the regulation of the payments system are:
• Electronic Transactions Act 1999;
• Payment Systems and Netting Act 1998;
• Payment Systems (Regulation) Act 1998; and
• Cheques Act 1986.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) is Australia's anti-money laundering regulator and specialist financial intelligence unit. AUSTRAC’s role is to oversee compliance with the reporting requirements of the Financial Transaction Reports Act 1988, by a wide range of financial services providers, including all banks.
The Australian Securities and Investments Commission (ASIC) is charged with monitoring corporations registered in Australia under the Australian Securities and Investments Commission Act 2001, including all banks, and enforces and regulates company and financial services laws to protect consumers, investors and creditors.
The Treasurer and Australian Treasury also have involvement with banking regulation in Australia. The Treasurer, and the Treasury in its role of advising the Treasurer, have responsibility for the legislative framework governing the financial sector and have involvement in aspects of APRA’s enforcement activities and the administration of the Financial Sector (Shareholdings) Act 1998.
July 12, 2004
By E-Mail: rule-comments@sec.gov
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549-0609
Attention: Jonathan G. Katz, Secretary
Re: Asset Backed Securities
Release Nos. 33-8419, 34-49644 (File No. S7-21-04)