Final report

REPORT - June 2024

List of recommendations

Recommendation 1

4.47The committee recommends that the Board of Gold Corporation (trading as The Perth Mint) publicly acknowledge that the failure to comply with the AntiMoney Laundering and Counter-Terrorism Financing Act 2006 is the responsibility of the Board and, in particular, members of the Audit and Risk Management Committee.

Recommendation 2

4.48The committee recommends that Gold Corporation publish a clear statement identifying the governance failures that ultimately led to breaches of the AntiMoney Laundering and Counter-Terrorism Financing Act 2006, and that the public statement specifically reference:

the events that lead to anti-money laundering and counter-terrorism financing compliance failings identified in the 2020 Internal Audit Report dated August 2020;

the extent to which the Gold Corporation Board informed the Western Australian Government of failures to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006; and

the extent to which the Assistant Under Treasurer, Mr Richard Watson, as a member of the Gold Corporation Board, informed the Western Australian Government of failings in Gold Corporation’s compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

Recommendation 3

4.49The committee recommends that Gold Corporation table before the Western Australian Parliament the 2020 Internal Audit Report dated August 2020.

Recommendation 4

4.50The committee recommends that Gold Corporation table before the Western Australian Parliament a report every two months on its compliance with the Enforceable Undertaking, and that this reporting continues until one month after the Australian Transaction Reports and Analysis Centre formally releases Gold Corporation from the Enforceable Undertaking.

Recommendation 5

4.51The committee recommends the Parliament of Western Australia initiate its own inquiry into matters related to the decision by the Australian Transaction Reports and Analysis Centre to impose an Enforceable Undertaking over Gold Corporation, post 30 April 2025.

Recommendation 6

4.58The committee recommends the Western Australian Government detail to the Western Australian Parliament the extent of the potential financial liability to the Western Australian taxpayer if Gold Corporation fails to meet its obligations under the Enforceable Undertaking.

Recommendation 7

4.60The committee recommends that the Australian Transaction Reports and Analysis Centre provide a private briefing every two months to the Senators of this committee on the progress being made by Gold Corporation to implement the recommendations of the Enforceable Undertaking.

4.61Should concerns be identified through these briefings, the committee recommends a further public examination be conducted through a referral to the Senate Legal and Constitutional References Committee for extended inquiry and report on matters related to the corporate and regulatory compliance of Gold Corporation with Commonwealth legislation, with particular reference to:

current and historical compliance with Australian anti-money laundering regulatory requirements, specifically the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1);

events that led to the Australian Transaction Reports and Analysis Centre ordering the appointment of an external auditor to Gold Corporation under subsection 162(2) of the Anti-Money Laundering and CounterTerrorism Financing Act 2006;

matters concerning the corporate and statutory governance of Gold Corporation;

the potential financial liability to Western Australian taxpayers of failure to comply with the Enforceable Undertaking; and

any other related matters.

Recommendation 8

4.62The committee recommends that the Australian National Audit Office conducts an inquiry into the adequacy of the Australian Transaction Reports and Analysis Centre's oversight of anti-money laundering and counterterrorism financing compliance by medium to high-risk entities.

Recommendation 9

4.63The committee recommends any continuance of the Senate's inquiry into matters related to the corporate and regulatory compliance of Gold Corporation and its trading entity The Perth Mint, through the Senate Legal and Constitutional Affairs References Committee, hears evidence from the following witnesses:

the Hon Mr David Michael MLA, Western Australian Minister for Mines and Petroleum;

Ms Gaye McMath, Chair of Audit and Risk Management Committee

(1 July 2016–30 June 2019);

Mr John O'Connor, Chair of Audit and Risk Management Committee

(1 July 2019–present);

Mr Richard Watson, Assistant Under Treasurer, Western Australian Treasury (February2019–present), Board Director ex-officio, and Audit and Risk Management Committee member (2018–present);

Ms Kaylene Gulich, Audit and Risk Management Committee member (2016–2018);

Mr Mark Puzey, Audit and Risk Management Committee member (2018–2021);

other members of the Audit and Risk Management Committee from 2021 onwards; and

representatives of PwC, or any other external auditor, who participated or oversaw any audit work contracted by Gold Corporation in the period 2010 to 2021.

Recommendation 10

4.64The committee recommends that, consistent with the Enforceable Undertaking's acknowledgement that the Australian Transaction Reports and Analysis Centre (AUSTRAC) may from 'time to time publicly refer to this Enforceable Undertaking', AUSTRAC issues a statement (or statements) of progress that detail:

the tracking of activities regarding the completion of the Remediation Program;

the remediation of customer data in accordance with the timeframes and standards detailed in the Customer Data Remediation work stream;

the completion of any actions in the Customer Data Remediation workstream;

advice of any deviations to the actions or timeframes set out in the Remediation Program requested by Gold Corporation;

any permissions given by AUSTRAC for material deviations to the Remediation Program;

any failure to meet reporting requirements required in the Enforceable Undertaking;

any breach of the Remediation Program advised to AUSTRAC; and any other matters relevant to informing the Western Australian community about the level of risk, or efforts to mitigate against risks, of money laundering and the financing of counterterrorism by Gold Corporation or its trading entity, The Perth Mint.

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