ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ACT 2006 - NOTES

ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ACT 2006 - NOTES

No. 169, 2006

Compilation No. 56

Compilation date: 20 October 2023

Includes amendments up to: Act No. 76, 2023

Registered: 31 October 2023

About this compilation

This compilation

This is a compilation of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 that shows the text of the law as amended and in force on 20 October 2023 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self-repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

Part 1--Introduction

1 Short title

2 Commencement

3 Objects

4 Simplified outline

5 Definitions

6 Designated services

7 Services provided jointly to 2 or more customers

8 Person-to-person electronic funds transfer instructions

9 Same-person electronic funds transfer instructions

10 Designated remittance arrangements etc.

11 Control test

12 Owner-managed branches of ADIs

13 Eligible gaming machine venues

14 Residency

15 Shell banks

16 Electronic communications

17 Bearer negotiable instruments

18 Translation of foreign currency to Australian currency

19 Translation of digital currency to Australian currency

20 Clubs and associations

21 Permanent establishment

22 Officials of Commonwealth, State or Territory agencies

23 Continuity of partnerships

24 Crown to be bound

25 Extension to external Territories

26 Extra-territorial application

Part 2--Identification procedures etc.

Division 1--Introduction

27 Simplified outline

Division 2--Identification procedures for certain pre-commencement customers

28 Identification procedures for certain pre-commencement customers

29 Verification of identity of pre-commencement customer etc.

Division 3--Identification procedures for certain low-risk services

30 Identification procedures for certain low-risk services

31 Verification of identity of low-risk service customer etc.

Division 4--Identification procedures etc.

32 Carrying out applicable customer identification procedure before commencement of provision of designated service

33 Special circumstances that justify carrying out the applicable customer identification procedure after the commencement of the provision of a designated service

34 Carrying out the applicable customer identification procedure after the commencement of the provision of a designated service etc.

Division 5--Verification of identity etc.

35 Verification of identity of customer etc.

Division 5A--Use and disclosure of personal information for the purposes of verifying an individual's identity

35A Reporting entities may disclose certain personal information to credit reporting bodies for identity verification purposes

35B Credit reporting bodies may use and disclose certain personal information for identity verification purposes

35C Reporting entities to notify inability to verify identity

35D Verification information not to be collected or held by a credit reporting body

35E Retention of verification information--credit reporting bodies

35F Retention of verification information--reporting entities

35G Access to verification information

35H Unauthorised access to verification information--offence

35J Obtaining access to verification information by false pretences--offence

35K Unauthorised use or disclosure of verification information--offence

35L Breach of requirement is an interference with privacy

Division 6--Ongoing customer due diligence

36 Ongoing customer due diligence

Division 7--General provisions

37 Applicable customer identification procedures may be carried out by an agent of a reporting entity

37A Reliance on applicable customer identification procedures or other procedures--agreements or arrangements

37B Regular assessments of agreement or arrangement covered by section 37A

38 Reliance on applicable customer identification procedures or other procedures--other circumstances

39 General exemptions

Part 3--Reporting obligations

Division 1--Introduction

40 Simplified outline

Division 2--Suspicious matters

41 Reports of suspicious matters

42 Exemptions

Division 3--Threshold transactions

43 Reports of threshold transactions

44 Exemptions

Division 4--International funds transfer instructions

45 Reports of international funds transfer instructions

46 International funds transfer instruction

Division 5--AML/CTF compliance reports

47 AML/CTF compliance reports

48 Self-incrimination

Division 6--General provisions

49 Further information to be given to the AUSTRAC CEO etc.

49A AML/CTF Rules may make provision in relation to reports by registered remittance affiliates

50 Request to obtain information about the identity of holders of foreign credit cards and foreign debit cards

50A Secrecy--information obtained under section 49

51 Division 400 and Chapter 5 of the Criminal Code

Part 3A--Reporting Entities Roll

51A Simplified outline

51B Reporting entities must enrol

51C Reporting Entities Roll

51D Enrolment

51E Applications for enrolment

51F Enrolled persons to advise of change in enrolment details

51G Removal of entries from the Reporting Entities Roll

Part 4--Reports about cross-border movements of monetary instruments

Division 1--Simplified outline of this Part

52 Simplified outline of this Part

Division 2--Reports about monetary instruments

53 Reports about movements of monetary instruments into or out of Australia

54 Reports about receipts of monetary instruments moved into Australia

55 Movements of monetary instruments into Australia

56 Movements of monetary instruments out of Australia

57 Obligations of customs officers and police officers

Division 4--Information about reporting obligations

61 Power to affix notices about reporting obligations

62 Notice about reporting obligations to be given to travellers to Australia

Part 5--Electronic funds transfer instructions

Division 1--Introduction

63 Simplified outline

Division 2--2 or more institutions involved in the transfer

64 Electronic funds transfer instructions--2 or more institutions involved in the transfer

65 Request to include customer information in certain international electronic funds transfer instructions

Division 3--Only one institution involved in the transfer

66 Electronic funds transfer instructions--only one institution involved in the transfer

Division 4--General provisions

67 Exemptions

68 Defence of relying on information supplied by another person

69 Division 400 and Chapter 5 of the Criminal Code

70 Required transfer information

71 Complete payer information

72 Tracing information

Part 6--The Remittance Sector Register

Division 1--Simplified outline

73 Simplified outline

Division 2--Restrictions on providing certain remittance services

74 Unregistered persons must not provide certain remittance services

Division 3--Registration of persons

75 Remittance Sector Register

75A Information to be entered on the Remittance Sector Register

75B Applications for registration

75C Registration by AUSTRAC CEO

75D Spent convictions scheme

75E Registration may be subject to conditions

75F When registration of a person ceases

75G Cancellation of registration

75H Suspension of registration

75J Renewal of registration

75K Removal of entries from the Remittance Sector Register

75L AML/CTF Rules--general provision

75M Registered persons to advise of material changes in circumstance etc.

75N AUSTRAC CEO may request further information

75P Immunity from suit

75Q Steps to be taken by AUSTRAC CEO before making certain reviewable decisions

Division 5--Basis of registration

75T Basis of registration

Part 6A--The Digital Currency Exchange Register

Division 1--Simplified outline

76 Simplified outline

Division 2--Restrictions on providing digital currency exchange services

76A Unregistered persons must not provide certain digital currency exchange services

Division 3--Registration of persons

76B Digital Currency Exchange Register

76C Information to be entered on the Digital Currency Exchange Register

76D Applications for registration

76E Registration by AUSTRAC CEO

76F Spent convictions scheme

76G Registration may be subject to conditions

76H When registration of a person ceases

76J Cancellation of registration

76K Suspension of registration

76L Renewal of registration

76M Removal of entries from the Digital Currency Exchange Register

76N AML/CTF Rules--general provision

76P Registered persons to advise of material changes in circumstance etc.

76Q AUSTRAC CEO may request further information

76R Immunity from suit

76S Steps to be taken by AUSTRAC CEO before making certain reviewable decisions

Division 4--Basis of registration

76T Basis of registration

Part 7--Anti-money laundering and counter-terrorism financing programs

Division 1--Introduction

80 Simplified outline

Division 2--Reporting entity's obligations

81 Reporting entity must have an anti-money laundering and counter-terrorism financing program

82 Compliance with Part A of an anti-money laundering and counter-terrorism financing program

Division 3--Anti-money laundering and counter-terrorism financing programs

83 Anti-money laundering and counter-terrorism financing programs

84 Standard anti-money laundering and counter-terrorism financing program

85 Joint anti-money laundering and counter-terrorism financing program

86 Special anti-money laundering and counter-terrorism financing program

87 Revocation of adoption of anti-money laundering and counter-terrorism financing program

88 Different applicable customer identification procedures

89 Applicable customer identification procedures--agent of customer

90 Applicable customer identification procedures--customers other than individuals

91 Applicable customer identification procedures--disclosure certificates

Division 4--Other provisions

92 Request to obtain information from a customer

93 Exemptions

Part 8--Correspondent banking

94 Simplified outline of this Part

95 Prohibitions on correspondent banking relationships involving shell banks

96 Due diligence assessments and records of correspondent banking relationships

100 Geographical links

Part 9--Countermeasures

101 Simplified outline

102 Countermeasures

103 Sunsetting of regulations after 2 years

Part 10--Record-keeping requirements

Division 1--Introduction

104 Simplified outline

105 Privacy Act not overridden by this Part

Division 2--Records of transactions etc.

106 Records of designated services

107 Transaction records to be retained

108 Customer-provided transaction documents to be retained

109 Records relating to transferred ADI accounts

110 Retention of records relating to closed ADI accounts

Division 3--Records in connection with the carrying out of identification procedures

111 Copying documents obtained in the course of carrying out an applicable custom identification procedure

112 Making of records of identification procedures

113 Retention of records of identification procedures

114 Retention of information if identification procedures taken to have been carried out by a reporting entity

114A Retention of records of assessments of agreements or arrangements covered by section 37A

Division 4--Records about electronic funds transfer instructions

115 Retention of records about electronic funds transfer instructions

Division 5--Records about anti-money laundering and counter-terrorism financing programs

116 Records about anti-money laundering and counter-terrorism financing programs

Division 6--Records about correspondent banking relationships

117 Retention of records about correspondent banking relationships

Division 7--General provisions

118 Exemptions

119 This Part does not limit any other obligations

Part 11--Secrecy and access

Division 1--Introduction

120 Simplified outline of this Part

Division 2--AUSTRAC entrusted persons

121 Offence--AUSTRAC entrusted persons

Division 3--Protection of information given under Part 3

123 Offence of tipping off

124 Report and information not admissible

Division 4--Access to AUSTRAC information by Commonwealth, State or Territory agencies

125 Access to AUSTRAC information

126 Dealings with AUSTRAC information

Division 5--Disclosure of AUSTRAC information to foreign countries or agencies

127 Disclosure of AUSTRAC information to foreign countries or agencies

Division 6--Unauthorised accessing of or use or disclosure of AUSTRAC information

128 Unauthorised accessing of AUSTRAC information

129 Use or disclosure of AUSTRAC information disclosed in contravention of this Part

Division 7--Use of AUSTRAC information in court or tribunal proceedings

134 Use of AUSTRAC information in court or tribunal proceedings

Part 12--Offences

135 Simplified outline

136 False or misleading information

137 Producing false or misleading documents

138 False documents

139 Providing a designated service using a false customer name or customer anonymity

140 Receiving a designated service using a false customer name or customer anonymity

141 Customer commonly known by 2 or more different names--disclosure to reporting entity

142 Conducting transactions so as to avoid reporting requirements relating to threshold transactions

143 Conducting transfers to avoid reporting requirements relating to cross-border movements of monetary instruments

Part 13--Audit

Division 1--Introduction

144 Simplified outline

Division 2--Appointment of authorised officers and issue of identity cards

145 Appointment of authorised officers

146 Identity cards

Division 3--Powers of authorised officers

Subdivision A--Monitoring powers

147 Authorised officer may enter premises by consent or under a monitoring warrant

148 Monitoring powers of authorised officers

149 Tampering or interfering with things secured in the exercise of monitoring powers

Subdivision B--Powers of authorised officers to ask questions and seek production of documents

150 Authorised officer may ask questions and seek production of documents

Division 4--Obligations and incidental powers of authorised officers

151 Authorised officer must produce identity card on request

152 Consent

153 Announcement before entry

154 Details of monitoring warrant to be given to occupier etc. before entry

155 Use of electronic equipment in exercising monitoring powers

156 Compensation for damage to electronic equipment

Division 5--Occupier's rights and responsibilities

157 Occupier entitled to be present during execution of monitoring warrant

158 Occupier to provide authorised officer with facilities and assistance

Division 6--Monitoring warrants

159 Monitoring warrants

160 Magistrates--personal capacity

Division 7--External audits

161 External audits--risk management etc.

162 External audits--compliance

163 External auditor may have regard to the results of previous audit

164 External auditors

Division 8--Money laundering and terrorism financing risk assessments

165 Money laundering and terrorism financing risk assessments

Part 14--Information-gathering powers

166 Simplified outline

167 Authorised officer may obtain information and documents

168 Copying documents--reasonable compensation

169 Self-incrimination

170 Copies of documents

171 Authorised officer may retain documents

172 Division 400 and Chapter 5 of the Criminal Code

Part 15--Enforcement

Division 1--Introduction

173 Simplified outline

Division 2--Civil penalties

174 Ancillary contravention of civil penalty provision

175 Civil penalty orders

176 Who may apply for a civil penalty order

177 2 or more proceedings may be heard together

178 Time limit for application for an order

179 Civil evidence and procedure rules for civil penalty orders

180 Civil proceedings after criminal proceedings

181 Criminal proceedings during civil proceedings

182 Criminal proceedings after civil proceedings

183 Evidence given in proceedings for penalty not admissible in criminal proceedings

Division 3--Infringement notices for certain contraventions

184 When an infringement notice can be given

185 Matters to be included in an infringement notice

186A Amount of penalty--breaches of certain provisions of Part 3A, 4, 6 or 6A

186B Amount of penalty--breaches of designated infringement notice provisions

187 Withdrawal of an infringement notice

188 What happens if the penalty is paid

189 Effect of this Division on criminal and civil proceedings

Division 4--Monitoring of compliance

190 Monitoring of compliance

Division 5--Remedial directions

191 Remedial directions

Division 6--Injunctions

192 Injunctions

193 Interim injunctions

194 Discharge etc. of injunctions

195 Certain limits on granting injunctions not to apply

196 Other powers of the Federal Court unaffected

Division 7--Enforceable undertakings

197 Acceptance of undertakings

198 Enforcement of undertakings

Division 8--Powers of questioning, search and arrest for cross-border movements of monetary instruments

199 Questioning and search powers in relation to monetary instruments

201 Arrest without warrant

Division 9--Notices to reporting entities

202 Notices to reporting entities

203 Contents of notices to reporting entities

204 Breaching a notice requirement

205 Self-incrimination

206 Division 400 and Chapter 5 of the Criminal Code

207 Disclosing existence or nature of notice

Part 16--Administration

Division 1--Introduction

208 Simplified outline

Division 2--Establishment and function of AUSTRAC

209 Establishment of AUSTRAC

210 Function of AUSTRAC

Division 3--Chief Executive Officer of AUSTRAC

Subdivision A--Office and functions of the AUSTRAC CEO

211 AUSTRAC CEO

212 Functions of the AUSTRAC CEO

213 Policy principles

Subdivision B--Appointment of the AUSTRAC CEO etc.

214 Appointment of the AUSTRAC CEO etc.

215 Remuneration and allowances of the AUSTRAC CEO

216 Leave of absence of the AUSTRAC CEO

217 Resignation of the AUSTRAC CEO

219 Termination of the AUSTRAC CEO's appointment

220 Other terms and conditions

221 Acting appointments

222 Delegation by the AUSTRAC CEO

223 Secretary may require the AUSTRAC CEO to give information

Division 4--Staff of AUSTRAC etc.

224 Staff of AUSTRAC

225 Consultants and persons seconded to AUSTRAC

Division 6--Directions by Minister

228 Directions by Minister

Division 6A--AUSTRAC CEO may use computers to take administrative action

228A AUSTRAC CEO may use computers to take administrative action

Division 7--AML/CTF Rules

229 AML/CTF Rules

Part 17--Vicarious liability

230 Simplified outline

231 Criminal liability of corporations

232 Civil liability of corporations

233 Liability of persons other than corporations

Part 17A--Review of decisions

233A Simplified outline

233B Reviewable decisions

233C Giving notice of reviewable decisions

233D Applications for reconsideration of decisions made by delegates of the AUSTRAC CEO

233E Reconsideration of reviewable decisions

233F Review by the Administrative Appeals Tribunal

233G Failure to comply does not affect validity

Part 18--Miscellaneous

234 Simplified outline

235 Protection from liability

236 Defence of taking reasonable precautions, and exercising due diligence, to avoid a contravention

237 Treatment of partnerships

238 Treatment of unincorporated associations

239 Treatment of trusts with multiple trustees

240 Concurrent operation of State and Territory laws

241 Act not to limit other powers

242 Law relating to legal professional privilege not affected

243 Validity of transactions

244 Reports to the AUSTRAC CEO etc.

245 Arrangements with Governors of States etc.

246 This Act does not limit other information-gathering powers

247 General exemptions

248 Exemptions and modifications by the AUSTRAC CEO

249 Specification by class

250 Schedule 1 (alternative constitutional basis)

251 Review of operation of Act

252 Regulations

Schedule 1--Alternative constitutional basis

1 Alternative constitutional basis

Endnotes

Endnote 1--About the endnotes

Endnote 2--Abbreviation key

Endnote 3--Legislation history

Endnote 4--Amendment history

Endnotes

Endnote 1--About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1--About the endnotes

Endnote 2--Abbreviation key

Endnote 3--Legislation history

Endnote 4--Amendment history

Abbreviation key--Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history--Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Editorial changes

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section  15V of the Legislation Act 2003.

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and "(md not incorp)" is added to the amendment history.

Endnote 2--Abbreviation key

Endnote 3--Legislation history

Endnote 4--Amendment history