Commonwealth Consolidated Acts Commonwealth Consolidated ActsAct No. 169 of 2006 as amended
[Note: Some provisions of this Act are not in force, see section 2]
This compilation was prepared on 31 January 2008
taking into account amendments up to Act No. 154 of 2007 and SLI 2008 No.
2
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may
be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and
Publishing,
Attorney‑General's Department, Canberra
Contents
Part 1--Introduction 1
1............ Short title [see Note 1] ....................................................................... 1
2............ Commencement .................................................................................. 1
3............ Objects ................................................................................................ 3
4............ Simplified outline ................................................................................ 5
5............ Definitions .......................................................................................... 6
6............ Designated services ........................................................................... 32
7............ Services provided jointly to 2 or more customers ............................ 54
8............ Person‑to‑person electronic funds transfer instructions .................. 54
9............ Same‑person electronic funds transfer instructions .......................... 56
10.......... Designated remittance arrangements etc. .......................................... 58
11.......... Control test ....................................................................................... 59
12.......... Owner‑managed branches of ADIs ................................................... 60
13.......... Eligible gaming machine venues ........................................................ 60
14.......... Residency ......................................................................................... 61
15.......... Shell banks ........................................................................................ 62
16.......... Electronic communications ............................................................... 63
17.......... Bearer negotiable instruments ........................................................... 63
18.......... Translation of foreign currency to Australian currency ................... 64
19.......... Translation of e‑currency to Australian currency ............................ 64
20.......... Clubs and associations ...................................................................... 64
21.......... Permanent establishment .................................................................. 64
22.......... Officials of designated agencies etc. .................................................. 65
23.......... Continuity of partnerships ............................................................... 67
24.......... Crown to be bound ........................................................................... 67
25.......... Extension to external Territories ....................................................... 67
26.......... Extra‑territorial application .............................................................. 67
Part 2--Identification procedures etc. 68
Division 1--Introduction 68
27.......... Simplified outline .............................................................................. 68
Division 2--Identification procedures for certain pre‑commencement customers 69
28.......... Identification procedures for certain pre‑commencement customers 69
29.......... Verification of identity of pre‑commencement customer etc. .......... 69
Division 3--Identification procedures for certain low‑risk services 71
30.......... Identification procedures for certain low‑risk services ..................... 71
31.......... Verification of identity of low‑risk service customer etc. ................ 71
Division 4--Identification procedures etc. 73
32.......... Carrying out the applicable customer identification procedure before the commencement of the provision of a designated service. ............................................................................ 73
33.......... Special circumstances that justify carrying out the applicable customer identification procedure after the commencement of the provision of a designated service .................. 73
34.......... Carrying out the applicable customer identification procedure after the commencement of the provision of a designated service etc. ........................................................................................ 74
Division 5--Verification of identity etc. 76
35.......... Verification of identity of customer etc. ........................................... 76
Division 6--Ongoing customer due diligence 77
36.......... Ongoing customer due diligence ........................................................ 77
Division 7--General provisions 78
37.......... Applicable customer identification procedures may be carried out by an agent of a reporting entity 78
38.......... Applicable customer identification procedures deemed to be carried out by a reporting entity 78
39.......... General exemptions .......................................................................... 79
Part 3--Reporting obligations 80
Division 1--Introduction 80
40.......... Simplified outline .............................................................................. 80
Division 2--Suspicious matters 81
41.......... Reports of suspicious matters .......................................................... 81
42.......... Exemptions ....................................................................................... 83
Division 3--Threshold transactions 85
43.......... Reports of threshold transactions .................................................... 85
44.......... Exemptions ....................................................................................... 85
Division 4--International funds transfer instructions 87
45.......... Reports of international funds transfer instructions ........................ 87
46.......... International funds transfer instruction ............................................ 88
Division 5--AML/CTF compliance reports 90
47.......... AML/CTF compliance reports ........................................................ 90
48.......... Self‑incrimination .............................................................................. 91
Division 6--General provisions 92
49.......... Further information to be given to the AUSTRAC CEO etc. .......... 92
50.......... Request to obtain information about the identity of holders of foreign credit cards and foreign debit cards 93
51.......... Division 400 and Chapter 5 of the Criminal Code ........................... 94
Part 4--Reports about cross‑border movements of physical currency and bearer negotiable instruments 95
Division 1--Introduction 95
52.......... Simplified outline .............................................................................. 95
Division 2--Reports about physical currency 96
53.......... Reports about movements of physical currency into or out of Australia 96
54.......... Timing of reports about physical currency movements ................... 97
55.......... Reports about receipts of physical currency from outside Australia 99
56.......... Obligations of customs officers and police officers ........................ 100
57.......... Movements of physical currency out of Australia ........................ 100
58.......... Movements of physical currency into Australia ............................ 100
Division 3--Reports about bearer negotiable instruments 101
59.......... Reports about movements of bearer negotiable instruments into or out of Australia 101
60.......... Obligations of customs officers and police officers ........................ 102
Division 4--Information about reporting obligations 103
61.......... Power to affix notices about reporting obligations ......................... 103
62.......... Notice about reporting obligations to be given to travellers to Australia 104
Part 5--Electronic funds transfer instructions 105
Division 1--Introduction 105
63.......... Simplified outline ............................................................................ 105
Division 2--2 or more institutions involved in the transfer 106
64.......... Electronic funds transfer instructions--2 or more institutions involved in the transfer 106
65.......... Request to include customer information in certain international electronic funds transfer instructions 109
Division 3--Only one institution involved in the transfer 112
66.......... Electronic funds transfer instructions--only one institution involved in the transfer 112
Division 4--General provisions 114
67.......... Exemptions ..................................................................................... 114
68.......... Defence of relying on information supplied by another person ..... 115
69.......... Division 400 and Chapter 5 of the Criminal Code ......................... 116
70.......... Required transfer information ......................................................... 116
71.......... Complete payer information .......................................................... 117
72.......... Tracing information ........................................................................ 118
Part 6--Register of Providers of Designated Remittance Services 119
73.......... Simplified outline ............................................................................ 119
74.......... Unregistered persons must not provide registrable designated remittance services 119
75.......... Register of Providers of Designated Remittance Services .............. 122
76.......... Registration ..................................................................................... 122
77.......... Updating of entries on the Register of Providers of Designated Remittance Services 123
78.......... Removal of entries from the Register of Providers of Designated Remittance Services 123
79.......... Access to the Register of Providers of Designated Remittance Services 124
79A....... Evidentiary certificates ................................................................... 124
Part 7--Anti‑money laundering and counter‑terrorism financing programs 126
Division 1--Introduction 126
80.......... Simplified outline ............................................................................ 126
Division 2--Reporting entity's obligations 127
81.......... Reporting entity must have an anti‑money laundering and counter‑terrorism financing program 127
82.......... Compliance with Part A of an anti‑money laundering and counter‑terrorism financing program 127
Division 3--Anti‑money laundering and counter‑terrorism financing programs 129
83.......... Anti‑money laundering and counter‑terrorism financing programs 129
84.......... Standard anti‑money laundering and counter‑terrorism financing program 129
85.......... Joint anti‑money laundering and counter‑terrorism financing program 131
86.......... Special anti‑money laundering and counter‑terrorism financing program 133
87.......... Revocation of adoption of anti‑money laundering and counter‑terrorism financing program 134
88.......... Different applicable customer identification procedures ................ 134
89.......... Applicable customer identification procedures--agent of customer 135
90.......... Applicable customer identification procedures--customers other than individuals 136
91.......... Applicable customer identification procedures--disclosure certificates 137
Division 4--Other provisions 140
92.......... Request to obtain information from a customer ............................. 140
93.......... Exemptions ..................................................................................... 141
Part 8--Correspondent banking 142
94.......... Simplified outline ............................................................................ 142
95.......... Prohibition of entry into correspondent banking relationships with shell banks etc. 142
96.......... Termination of correspondent banking relationship with shell bank etc. 143
97.......... Due diligence assessments before entering into correspondent banking relationships etc. 144
98.......... Regular due diligence assessments of correspondent banking relationships etc. 145
99.......... Other rules about correspondent banking relationships ................. 146
100........ Geographical links .......................................................................... 147
Part 9--Countermeasures 148
101........ Simplified outline ............................................................................ 148
102........ Countermeasures ............................................................................ 148
103........ Sunsetting of regulations after 2 years ............................................ 149
Part 10--Record‑keeping requirements 150
Division 1--Introduction 150
104........ Simplified outline ............................................................................ 150
105........ Privacy Act not overridden by this Part ........................................ 150
Division 2--Records of transactions etc. 151
106........ Records of designated services ....................................................... 151
107........ Transaction records to be retained .................................................. 152
108........ Customer‑provided transaction documents to be retained ............. 152
109........ Records relating to transferred ADI accounts ................................ 153
110........ Retention of records relating to closed ADI accounts .................... 154
Division 3--Records of identification procedures 156
111........ Copying documents obtained in the course of carrying out an applicable custom identification procedure 156
112........ Making of records of identification procedures .............................. 156
113........ Retention of records of identification procedures .......................... 157
114........ Records of identification procedures deemed to have been carried out by a reporting entity 158
Division 4--Records about electronic funds transfer instructions 161
115........ Retention of records about electronic funds transfer instructions .. 161
Division 5--Records about anti‑money laundering and counter‑terrorism financing programs 163
116........ Records about anti‑money laundering and counter‑terrorism financing programs 163
Division 6--Records about due diligence assessments of correspondent banking relationships 165
117........ Retention of records of due diligence assessments of correspondent banking relationships 165
Division 7--General provisions 166
118........ Exemptions ..................................................................................... 166
119........ This Part does not limit any other obligations ............................... 166
Part 11--Secrecy and access 167
Division 1--Introduction 167
120........ Simplified outline ............................................................................ 167
Division 2--Secrecy 168
121........ Secrecy--AUSTRAC information and AUSTRAC documents .... 168
122........ Secrecy--information obtained under section 49 ........................... 169
Division 3--Disclosure of information 172
123........ Offence of tipping off ..................................................................... 172
124........ Report and information not admissible .......................................... 175
Division 4--Access to AUSTRAC information by agencies 177
Subdivision A--Access by the ATO to AUSTRAC information 177
125........ Access by the ATO to AUSTRAC information ............................ 177
Subdivision B--Access by designated agencies to AUSTRAC information 177
126........ Access by designated agencies to AUSTRAC information ............ 177
127........ Dealings with AUSTRAC information once accessed ................... 179
128........ When AUSTRAC information can be passed on by an official of a designated agency 179
Subdivision C--Access by non‑designated Commonwealth agencies to AUSTRAC information 185
129........ Access by non‑designated Commonwealth agencies to AUSTRAC information 185
130........ Dealings with AUSTRAC information once accessed ................... 186
131........ When AUSTRAC information can be passed on by an official of a non‑designated Commonwealth agency 186
Subdivision D--Communication of AUSTRAC information to foreign countries etc. 188
132........ Communication of AUSTRAC information to a foreign country etc. 188
133........ When the Director‑General of Security may communicate AUSTRAC information to a foreign intelligence agency ........................................................................................................ 190
133A..... When the Director‑General of ASIS may communicate AUSTRAC information to a foreign intelligence agency 190
Division 5--Use of AUSTRAC information in court or tribunal proceedings 192
134........ Use of AUSTRAC information in court or tribunal proceedings ... 192
Part 12--Offences 193
135........ Simplified outline ............................................................................ 193
136........ False or misleading information ...................................................... 193
137........ Producing false or misleading documents ....................................... 194
138........ False documents ............................................................................. 195
139........ Providing a designated service using a false customer name or customer anonymity 196
140........ Receiving a designated service using a false customer name or customer anonymity 197
141........ Customer commonly known by 2 or more different names--disclosure to reporting entity 198
142........ Conducting transactions so as to avoid reporting requirements relating to threshold transactions 198
143........ Conducting transfers so as to avoid reporting requirements relating to cross‑border movements of physical currency ........................................................................................................ 199
Part 13--Audit 201
Division 1--Introduction 201
144........ Simplified outline ............................................................................ 201
Division 2--Appointment of authorised officers and issue of identity cards 202
145........ Appointment of authorised officers ............................................... 202
146........ Identity cards .................................................................................. 202
Division 3--Powers of authorised officers 204
Subdivision A--Monitoring powers 204
147........ Authorised officer may enter premises by consent or under a monitoring warrant 204
148........ Monitoring powers of authorised officers ...................................... 204
149........ Tampering or interfering with things secured in the exercise of monitoring powers 206
Subdivision B--Powers of authorised officers to ask questions and seek production of documents 207
150........ Authorised officer may ask questions and seek production of documents 207
Division 4--Obligations and incidental powers of authorised officers 209
151........ Authorised officer must produce identity card on request ............. 209
152........ Consent ........................................................................................... 209
153........ Announcement before entry ........................................................... 209
154........ Details of monitoring warrant to be given to occupier etc. before entry 210
155........ Use of electronic equipment in exercising monitoring powers ....... 210
156........ Compensation for damage to electronic equipment ........................ 211
Division 5--Occupier's rights and responsibilities 213
157........ Occupier entitled to be present during execution of monitoring warrant 213
158........ Occupier to provide authorised officer with facilities and assistance 213
Division 6--Monitoring warrants 214
159........ Monitoring warrants ....................................................................... 214
160........ Magistrates--personal capacity ..................................................... 215
Division 7--External audits 216
161........ External audits--risk management etc. ........................................... 216
162........ External audits--compliance .......................................................... 218
163........ External auditor may have regard to the results of previous audit . 220
164........ External auditors ............................................................................. 220
164A..... Review of decisions ........................................................................ 221
Division 8--Money laundering and terrorism financing risk assessments 222
165........ Money laundering and terrorism financing risk assessments ......... 222
Part 14--Information‑gathering powers 224
166........ Simplified outline ............................................................................ 224
167........ Authorised officer may obtain information and documents ........... 224
168........ Copying documents--reasonable compensation ............................ 225
169........ Self‑incrimination ............................................................................ 225
170........ Copies of documents ...................................................................... 226
171........ Authorised officer may retain documents ...................................... 226
172........ Division 400 and Chapter 5 of the Criminal Code ......................... 226
Part 15--Enforcement 227
Division 1--Introduction 227
173........ Simplified outline ............................................................................ 227
Division 2--Civil penalties 228
174........ Ancillary contravention of civil penalty provision ........................ 228
175........ Civil penalty orders ........................................................................ 228
176........ Who may apply for a civil penalty order ....................................... 229
177........ 2 or more proceedings may be heard together ................................ 230
178........ Time limit for application for an order ........................................... 230
179........ Civil evidence and procedure rules for civil penalty orders ............ 230
180........ Civil proceedings after criminal proceedings .................................. 230
181........ Criminal proceedings during civil proceedings ................................ 230
182........ Criminal proceedings after civil proceedings .................................. 230
183........ Evidence given in proceedings for penalty not admissible in criminal proceedings 231
Division 3--Infringement notices for unreported cross‑border movements of physical currency and bearer negotiable instruments 232
184........ When an infringement notice can be given ...................................... 232
185........ Matters to be included in an infringement notice ........................... 232
186........ Amount of penalty ......................................................................... 233
187........ Withdrawal of an infringement notice ............................................. 233
188........ What happens if the penalty is paid .............................................. 233
189........ Effect of this Division on criminal and civil proceedings ............... 234
Division 4--Monitoring of compliance 235
190........ Monitoring of compliance .............................................................. 235
Division 5--Remedial directions 236
191........ Remedial directions ......................................................................... 236
191A..... Review of decisions ........................................................................ 236
Division 6--Injunctions 238
192........ Injunctions ...................................................................................... 238
193........ Interim injunctions .......................................................................... 238
194........ Discharge etc. of injunctions ........................................................... 239
195........ Certain limits on granting injunctions not to apply ........................ 239
196........ Other powers of the Federal Court unaffected ............................... 240
Division 7--Enforceable undertakings 241
197........ Acceptance of undertakings ............................................................ 241
198........ Enforcement of undertakings .......................................................... 242
Division 8--Powers of questioning, search and arrest in relation to cross‑border movements of physical currency and bearer negotiable instruments 243
199........ Questioning and search powers in relation to physical currency ... 243
200........ Questioning and search powers in relation to bearer negotiable instruments 246
201........ Arrest without warrant ................................................................... 251
Division 9--Notices to reporting entities 252
202........ Notices to reporting entities ........................................................... 252
203........ Contents of notices to reporting entities ........................................ 253
204........ Breaching a notice requirement ....................................................... 253
205........ Self‑incrimination ............................................................................ 254
206........ Division 400 and Chapter 5 of the Criminal Code ......................... 254
207........ Disclosing existence or nature of notice .......................................... 254
Part 16--Administration 256
Division 1--Introduction 256
208........ Simplified outline ............................................................................ 256
Division 2--Establishment and function of AUSTRAC 257
209........ Establishment of AUSTRAC ......................................................... 257
210........ Function of AUSTRAC ................................................................. 257
Division 3--Chief Executive Officer of AUSTRAC 258
Subdivision A--Office and functions of the AUSTRAC CEO 258
211........ AUSTRAC CEO ............................................................................ 258
212........ Functions of the AUSTRAC CEO ................................................. 258
213........ Policy principles ............................................................................. 260
Subdivision B--Appointment of the AUSTRAC CEO etc. 260
214........ Appointment of the AUSTRAC CEO etc. .................................... 260
215........ Remuneration and allowances of the AUSTRAC CEO ................. 261
216........ Leave of absence of the AUSTRAC CEO ...................................... 261
217........ Resignation of the AUSTRAC CEO .............................................. 261
218........ Notification of possible conflict of interest by the AUSTRAC CEO 261
219........ Termination of the AUSTRAC CEO's appointment .................... 262
220........ Other terms and conditions ............................................................ 263
221........ Acting appointments ...................................................................... 263
222........ Delegation by the AUSTRAC CEO ............................................... 263
223........ Secretary may require the AUSTRAC CEO to give information ... 264
Division 4--Staff of AUSTRAC etc. 265
224........ Staff of AUSTRAC ........................................................................ 265
225........ Consultants and persons seconded to AUSTRAC ........................ 265
Division 5--Reports and information 266
226........ Annual report ................................................................................. 266
227........ Minister may require the AUSTRAC CEO to prepare reports or give information 266
Division 6--Directions by Minister 267
228........ Directions by Minister ................................................................... 267
Division 7--AML/CTF Rules 268
229........ AML/CTF Rules ............................................................................ 268
Part 17--Vicarious liability 269
230........ Simplified outline ............................................................................ 269
231........ Criminal liability of corporations ................................................... 269
232........ Civil liability of corporations ......................................................... 269
233........ Liability of persons other than corporations .................................. 270
Part 18--Miscellaneous 271
234........ Simplified outline ............................................................................ 271
235........ Protection from liability ................................................................. 272
236........ Defence of taking reasonable precautions, and exercising due diligence, to avoid a contravention 272
237........ Treatment of partnerships .............................................................. 273
238........ Treatment of unincorporated associations ..................................... 274
239........ Treatment of trusts with multiple trustees .................................... 274
240........ Concurrent operation of State and Territory laws ......................... 275
241........ Act not to limit other powers ......................................................... 275
242........ Law relating to legal professional privilege not affected ................. 275
243........ Validity of transactions .................................................................. 275
244........ Reports to the AUSTRAC CEO etc. ............................................. 276
245........ Arrangements with Governors of States etc. .................................. 276
246........ This Act does not limit other information‑gathering powers ......... 277
247........ General exemptions ........................................................................ 277
248........ Exemptions and modifications by the AUSTRAC CEO ............... 278
249........ Specification by class ..................................................................... 279
250........ Schedule 1 (alternative constitutional basis) ................................... 279
251........ Review of operation of Act ............................................................ 279
252........ Regulations ..................................................................................... 279
Schedule 1--Alternative constitutional basis 281
1............ Alternative constitutional basis ...................................................... 281
Notes 285
Notes to
the
Anti-Money Laundering and Counter-Terrorism
Financing Act 2006 Note 1 The Anti‑Money Laundering and Counter‑Terrorism
Financing Act 2006 as shown in this
compilation
comprises Act No. 169, 2006 amended as indicated in the Tables below. The Anti‑Money Laundering and Counter‑Terrorism
Financing Act 2006 was amended by the Anti-Money Laundering and
Counter-Terrorism Financing Regulations 2008 (SLI 2008 No. 2). The
amendment is incorporated in this compilation. For all relevant information pertaining to application, saving
or transitional provisions see Table A. Table of Acts
|
Act |
Number |
Date |
Date of commencement |
Application, saving or transitional provisions |
|
Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 |
169, 2006 |
12 Dec 2006 |
Ss. 1 and 2: Royal Assent |
|
|
Anti‑Money Laundering and Counter‑Terrorism Financing Amendment Act 2007 |
52, 2007 |
12 Apr 2007 |
Schedule 1 (items 2--13, 15--19, |
Sch. 1 (items |
|
Financial Sector Legislation Amendment (Simplifying Regulation and Review) Act 2007 |
154, 2007 |
24 Sept 2007 |
Schedule 1 (items 156, 157): 1 Jan 2008 |
Sch. 1 (item 296) |
(a) Subsection 2(1) (items 3 and 5) of the Anti‑Money Laundering and Counter‑Terrorism Financing Amendment Act 2007 provides as follows:
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
|
Commencement information |
||
|
Column 1 |
Column 2 |
Column 3 |
|
Provision(s) |
Commencement |
Date/Details |
|
3. Schedule 1, item 14 |
Immediately after the commencement of section 42 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006. |
[see Note 2] |
|
5. Schedule 1, item 20 |
Immediately after the commencement of section 85 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006. |
12 December 2007 |
Table of Amendments
|
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
|