Australia’s Financial Agency Automates Fund Transfer With Blockchain

Blockchain, Innovation, News | February 26, 2019 By:

The Australian Transaction Reports and Analysis Center (AUSTRAC), the country’s financial intelligence agency, is exploring blockchain technology to automate funds transfer instructions.

AUSTRAC is reportedly collaborating with Swinburne University of Technology to develop a prototype for the trial. The two parties’ proof of concept project, which started in December 2018 and is expected to run for 12 months, will explore the feasibility of using technologies like blockchain smart contracts to help reporting entities, such as banks, remitters, and casinos, automate international fund transfer instructions (IFTI) reporting to the agency.

Under Australia’s AML/CTF Act, an EFTI is an electronic instruction sent between an ordering institution and a beneficiary institution. The sender of an IFTI transmitted out of Australia, or the recipient of an IFTI transmitted into Australia, must report the instruction to AUSTRAC within ten business days after the day the instruction was sent or received.

Last month, Swinburne teamed with consultancy firm Capgemini to establish a global Blockchain Center of Excellence (BCOE) at Swinburne’s Hawthorn campus in Melbourne. The BCOE is expected to focus on advancing blockchain technologies, platforms, assets, and systems to develop industry understanding and implementation of blockchain technologies.

“We see this technology as the key digital innovation platform supporting global supply chains, intellectual property, and trade across a range of industry sectors in the future,” Swinburne deputy vice-chancellor of research and development professor Aleksandar Subic said.