ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ACT 2006 - SECT 65 Request to include customer information in certain international electronic funds transfer instructions

ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ACT 2006 - SECT 65

Scope

  (1)   This section applies to:

  (a)   a multiple - institution person - to - person electronic funds transfer instruction; or

  (b)   a multiple - institution same - person electronic funds transfer instruction;

if:

  (c)   the instruction is accepted at or through a permanent establishment of the ordering institution in a foreign country; and

  (d)   the transferred money is to be, or is, made available to the payee at or through a permanent establishment of the beneficiary institution in Australia.

Note:   For exemptions, see section   67.

Direction to beneficiary institution

  (2)   If:

  (a)   the beneficiary institution has received 2 or more electronic funds transfer instructions from a particular ordering institution; and

  (b)   at least one of the electronic funds transfer instructions does not include the required transfer information; and

  (c)   the AUSTRAC CEO, by written notice given to the beneficiary institution, directs the beneficiary institution to give the ordering institution a request (in a form specified in the notice) to include required transfer information in all future electronic funds transfer instructions passed on by the ordering institution to the beneficiary institution;

the beneficiary institution must comply with the direction within 10 business days after the day on which the direction is given.

Report by beneficiary institution

  (3)   If the beneficiary institution gives the ordering institution a request under subsection   (2), the beneficiary institution must, within:

  (a)   20 business days after the day on which the subsection   (2) direction was given; or

  (b)   if the AUSTRAC CEO, by written notice given to the beneficiary institution, allows a longer period--that longer period;

give the AUSTRAC CEO a report about the ordering institution's response, or lack of response, to the request.

  (4)   A report under subsection   (3) must:

  (a)   be in the approved form; and

  (b)   contain such information relating to the matter as is required by the approved form.

Note:   For additional rules about reports, see section   244.

Civil penalty

  (5)   Subsections   (2) and (3) are civil penalty provisions.

Powers of beneficiary institution

  (6)   If an electronic funds transfer instruction received by the beneficiary institution does not include the required transfer information, the beneficiary institution may, for the purpose set out in subsection   (7), refuse to make the transferred money available to the payee until the required transfer information is passed on to the beneficiary institution.

  (7)   The purpose referred to in subsection   (6) is to:

  (a)   identify; or

  (b)   mitigate; or

  (c)   manage;

the risk the beneficiary institution may reasonably face that the making available by the beneficiary institution of transferred money at or through a permanent establishment of the beneficiary institution in Australia might (whether inadvertently or otherwise) involve or facilitate:

  (d)   money laundering; or

  (e)   financing of terrorism.

Protection from liability

  (8)   An action, suit or proceeding (whether criminal or civil) does not lie against:

  (a)   the beneficiary institution; or

  (b)   an officer, employee or agent of the beneficiary institution acting in the course of his or her office, employment or agency;

in relation to anything done, or omitted to be done, in good faith by the beneficiary institution, officer, employee or agent in the exercise, or purported exercise, of the power conferred by subsection   (6).