20 February 2017

Does regulation aimed at encouraging competition and innovation conflict with requirements for KYC, AML, etc.?

Do Australian KYC/AML laws conflict with privacy, innovation and competition legislation?

The main objective of the research “Regulatory Focus on Competition and Innovation in Payments Services” is to determine whether Australian regulation, aimed at encouraging competition and innovation, conflicts with requirements for Know Your Customer (KYC), Anti-Money Laundering (AML) and privacy protection.

Given the convergence of the Australian regulatory frameworks with those in Europe and North America (and reference to Australia by regional partners such as New Zealand), the paper assesses the scope and significance of regulatory conflicts in this country as well as identifying differing perceptions on the part of its policymakers and administrators.

The paper ultimately notes a disjoint between the authorities that implement the AML/CTF (anti-money laundering and counter terrorism financing) legislative regime and those that implement privacy, innovation and competition legislation.

by Geoff Nicoll, Milind Saythe, Paula Chadderton

  • University of Canberra