Federal Register of Legislation - Australian Government

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No. 4 of 2007 Rules/Other as made
This instrument determines the purpose and operation of Anti-Money Laundering and Counter-Terrorism Financing Rules (AML/CTF Rules) for reportable details of international funds transfer instructions (items 3 and 4 in section 46).
Administered by: Attorney-General's
General Comments: This Instrument commences as follows: (a) on 12 December 2007 - Schedule 1; (b) on 12 December 2008 - Schedule 2.
Made 14 Dec 2007
Registered 18 Dec 2007
Tabled HR 12 Feb 2008
Tabled Senate 12 Feb 2008
Date of repeal 09 Apr 2013
Repealed by Attorney-General's (Spent and Redundant Instruments) Repeal Regulation 2013

 

Explanatory Statement – Anti-Money Laundering and Counter-Terrorism Financing Rules for reportable details of international funds transfer instructions (items 3 and 4 of section 46)

 

1.         Purpose and operation of Anti-Money Laundering and Counter-Terrorism Financing Rules (AML/CTF Rules) for reportable details of international funds transfer instructions (items 3 and 4 in section 46)

 

Section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) provides that the AUSTRAC Chief Executive Officer (CEO) may, by writing, make AML/CTF Rules prescribing matters required or permitted by any other provision of the AML/CTF Act.

 

Division 4 of Part 3 of the AML/CTF Act deals with reports about international funds transfer instructions into or out of Australia. Section 45 provides that if a person is the sender of an international funds transfer instruction transmitted out of Australia, or the recipient of an international funds transfer instruction transmitted into Australia, the person must give the AUSTRAC CEO a report about the instruction, in the approved form. The report must be given within 10 business days after the day the instruction was sent or received.

 

Within the meaning of items 3 and 4 of the table in section 46 of the AML/CTF Act, the report must contain such information as specified in the AML/CTF Rules. The information specified in the AML/CTF Rules pursuant to paragraph 45(3)(b) of the AML/CTF Act, for instructions transmitted into or out of Australia under a designated remittance arrangement, includes details of:

 

·        the transferor entity

·        the transmitter of the instruction under a designated remittance arrangement

·        the money or property to be transferred.

 

These AML/CTF Rules and Division 4 of Part 3 of the AML/CTF Act commence on 12 December 2008.

 

2.         Legislative instruments

 

The AML/CTF Rules are legislative instruments as defined in section 5 of the Legislative Instruments Act 2003.

 

3.         Likely impact

 

These AML/CTF Rules will have an impact on a person (reporting entity) who sends or receives international funds transfer instructions under a designated remittance arrangement.

 

In terms of any likely costs to consumers, there is no direct cost other than the time taken to complete associated paperwork requested by a reporting entity, if any.

 


4.         Assessment of benefits

 

Division 4 of Part 3 of the AML/CTF Act provides for a reporting system in relation to international funds transfer instructions. This system implements the requirements of the Financial Action Task Force’s Special Recommendation VII. Special Recommendation VII provides that countries should take measures to require financial institutions, including money remitters, to include accurate and meaningful originator information (name, address and account number) on funds transfers and related messages that are sent, and that the information should remain with the transfer or related message through the payment chain.

Reports about international funds transfer instructions will result in improved financial intelligence which will help Australian law enforcement agencies to combat money laundering and the financing of terrorism. Increased financial intelligence will also help the Australian Taxation Office to detect tax evasion and Centrelink to detect welfare fraud.

 

5.         Consultation

 

AUSTRAC has consulted with the Office of the Privacy Commissioner, the Australian Customs Service, the Australian Federal Police, the Australian Taxation Office and the Australian Crime Commission in relation to these AML/CTF Rules.

 

AUSTRAC also published a draft of these AML/CTF Rules on its website for public comment.

 

6.         Ongoing consultation

 

AUSTRAC will conduct ongoing consultation with stakeholders on the operation of the AML/CTF Rules.