Some important thoughts when considering the ABC report with respect to ISX's capabilities for providing a solution to Australian banks. Australia is years behind Europe, UK, US, and the rest of the world in AML laws. Australia is on the EU's grey list for AML, whereas BVI, Caymans, etc. are no longer. Australia does not have a very good reputation and the loosening of the law around acceptance of money from a person/entity to affect a trade on the ASX is not going to improve that opinion. We will be doing just what we look like we are doing - taking advantage of an injection of money wherever it comes from in order to improve our post-COVID recovery. Never mind that it may be money-laundering for activities such as drugs, child pornography, terrorism funding, trafficking in people, etc. This change will not improve confidence in Australia's financial and equities systems.
ISX has the confidence of the EU and UK for providing KYC and KYCC protection for transaction movements from entity to entity, but ISX needs to be at the initiator end of the transaction (i.e. next to whoever is moving the money). This requirement is evidenced by ISX's refusal to receive transactions from NAB, since ISX does not have confidence in NAB's AML checking procedures which have had (and perhaps still have) the ability to change the sender's name, for example.
Some important facts:
In the US and the EU (and perhaps Australia?) shell companies can not be granted bank accounts. This should be an international requirement.
