Federal Register of Legislation - Australian Government

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No. 5 of 2007 Rules/Other as made
This instrument amends the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) to determine Anti-Money Laundering and Counter-Terrorism Financing Rules (AML/CTF Rules) for threshold transaction reportable details.
Administered by: Attorney-General's
Made 18 Dec 2007
Registered 20 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Repealed by Attorney-General's (Spent and Redundant Instruments) Repeal Regulation 2013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 threshold transactions (commencement date of 12 December 2008)

 

1.         Purpose and operation of Anti-Money Laundering and Counter-Terrorism Financing Rules (AML/CTF Rules) for reportable details of threshold transactions

 

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 3 of Part 3 of the AML/CTF Act deals with reports about threshold transactions. Section 43 provides that if a reporting entity commences to provide, or provides, a designated service to a customer that involves a threshold transaction, the reporting entity must give the AUSTRAC CEO a report about the transaction within 10 business days. Paragraph 43(3)(b) of the AML/CTF Act provides that the report must contain such information as specified in the AML/CTF Rules. The information specified in the AML/CTF Rules includes certain details about:

 

·        the customer

·        the nature of a designated service provided or commenced to be provided by a reporting entity which involves the threshold transaction.

 

These AML/CTF Rules and Division 3 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 any reporting entity that provides a designated service that involves a threshold transaction to a customer.

 

4.         Assessment of benefits

 

Division 3 of Part 3 of the AML/CTF Act provides for a reporting system in relation to threshold transactions. This system implements the requirements of the Financial Action Task Force’s (FATF’s) Recommendation 19. Recommendation 19 provides that countries should consider the feasibility and utility of a system where banks and other financial institutions and intermediaries would report to a central agency all domestic and international currency transactions above a fixed amount. Reports about threshold transactions 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.