Apr.21, 2010

The memorandum of understanding between the two countries will allow for certain exchanges of financial intelligence and other forms of cooperation.

AUSTRAC's Chief Executive Officer, John Schmidt said: "Guatemala is the most populous country in Central America and, like Australia, is working towards combating money laundering and terrorism financing, and other serious crimes such as drug and human trafficking."

"This agreement bolsters AUSTRAC's capacity to support the global fight against these crimes and to protect the integrity of Australia's financial system."

Both AUSTRAC and Guatemala's FIU (Intendencia de Verificacion Especial) are active members of the Egmont Group of Financial Intelligence Units, a global network of 116 FIUs which promotes international cooperation between its members.

AUSTRAC now has 57 agreements to exchange financial intelligence, and one to exchange regulatory information, with its foreign counterparts.

In further AUSTRAC news, Minister for Home Affairs Brendan O'Connor has announced new Anti-Money Laundering and Counter-Terrorism Financing Rules (AML/CTF Rules) which provide powers to deregister high-risk money remitters.

The new Rules will reduce the risk of money remitters facilitating access to funds for money laundering, terrorism financing, and other serious crimes such as people smuggling.

The new Rules allow the CEO of AUSTRAC to remove a person's name and details from the Register of Providers of Designated Remittance Services.

Money remitters must be listed on this register to legally provide money transfer services.

Mr O'Connor stressed that the powers to deregister were targeted at preventing serious crimes and will not affect the majority of money remitters.

An additional amendment made to the AML/CTF Rules allows money transfer service providers to form a designated business group (DBG).

"This particular amendment will be beneficial to relevant businesses as they will be able to take advantage of the efficiencies which result from being able to form a designated business group," Mr O'Connor said.