Commonwealth Consolidated Acts

FINANCIAL TRANSACTION REPORTS ACT 1988 - SECT 18

             (1)  Subject to subsections (1A) and (1B), this section applies where:

                     (a)  on a day (in this subsection called the transaction day ) after the commencement of this section, a person:

                              (i)  opens an account (other than a facility or arrangement for a safety deposit box or for any other form of safe deposit) with a cash dealer; or

                             (ii)  becomes a signatory of such an account with a cash dealer;

                            and either of the following subparagraphs applies:

                            (iii)  on a day (in this section called the infringement day ), being the transaction day or a later day, the credit balance of the account exceeds $1,000;

                            (iv)  on a day (in this section also called the infringement day ), being at least 30 days after the transaction day, the aggregate of the amounts credited to the account within the last 30 days exceeds $2,000; or

                     (b)  on a day after the commencement of this section (in this section also called the infringement day ) a person:

                              (i)  opens an account with a cash dealer, being a facility or arrangement for a safety deposit box or for any other form of safe deposit; or

                             (ii)  becomes a signatory of such an account with a cash dealer.

          (1A)  Subparagraphs (1)(a)(i) and (b)(i) do not apply if the account is opened after the commencement of Division 1 of Part 2 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 in circumstances that amount to the provision of a designated service.

          (1B)  Subparagraphs (1)(a)(ii) and (b)(ii) do not apply if:

                     (a)  the person becomes a signatory of the account after the commencement of Division 1 of Part 2 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 ; and

                     (b)  either:

                              (i)  the account is opened after the commencement of Division 1 of Part 2 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 in circumstances that amount to the provision of a designated service; or

                             (ii)  the account was opened before the commencement of that Division in circumstances that would have amounted to the provision of a designated service if all the provisions of Parts 1 and 2 of that Act had been in force at the relevant time.

             (2)  If, at the end of the infringement day, the cash dealer does not have the account information about the account, the account is blocked with respect to each signatory until the cash dealer has the information or the AUSTRAC CEO gives a notice under subsection 19(2).

Note:          a cash dealer is not required to obtain any information that has already been obtained in relation to another account.

          (2A)  If, at the end of the infringement day, the cash dealer does not have the signatory information about the person ( unverified signatory ), the account is blocked with respect to that signatory until the cash dealer has that information or the AUSTRAC CEO gives a notice under subsection 19(2).

Note:          a cash dealer is not required to obtain any information that has already been obtained in relation to another account.

             (3)  At the end of the infringement day, the cash dealer commits an offence against this subsection unless it has made reasonable efforts, on or before that day, to obtain the account information and the signatory information.

          (3A)  Subsection (3) does not apply in relation to accounts that are RSAs.

             (4)  If:

                     (a)  a signatory, knowing that the account is blocked, makes a withdrawal from the account at any time when the account is blocked under subsection (2); or

                     (b)  the unverified signatory, knowing that the account is blocked, makes a withdrawal from the account at any time when the account is blocked under subsection (2A);

the signatory commits an offence against this subsection.

          (4A)  If:

                     (a)  a signatory makes a withdrawal from the account at any time when the account is blocked under subsection (2); or

                     (b)  the unverified signatory makes a withdrawal from the account at any time when the account is blocked under subsection (2A);

the cash dealer commits an offence against this subsection.

          (4B)  Subsections (2), (2A), (4) and (4A) do not apply in relation to withdrawals:

                     (a)  made as a result of a request under paragraph 50(1)(a) of the Retirement Savings Accounts Act 1997 ; or

                     (b)  made as a result of the death of the person who is the holder of the account for the purposes of the Retirement Savings Accounts Act 1997 ; or

                     (c)  made under section 89, 195 or 196 of the Retirement Savings Accounts Act 1997 ; or

                    (ca)  made in accordance with Part 3 or 3A of the Superannuation (Unclaimed Money and Lost Members) Act 1999 ; or

                     (d)  that are used to make payments of insurance premiums in accordance with the terms and conditions of the account.

             (6)  An offence against subsection (3), (4) or (4A) is punishable, upon conviction, by imprisonment for not more than 2 years.

Note:          Subsection 4B(2) of the Crimes Act 1914 allows a court to impose in respect of an offence an appropriate fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on an individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act. If a body corporate is convicted of an offence, subsection 4B(3) of that Act allows a court to impose a fine that is not greater than 5 times the maximum fine that could be imposed by the court on an individual convicted of the same offence.

             (8)  Where an account other than an RSA has been blocked for 12 months after the infringement day, the cash dealer shall, within 14 days after the end of that period, give the AUSTRAC CEO written notice of that fact, setting out the balance of an account and such other particulars as are prescribed.

          (8A)  If:

                     (a)  an account other than an RSA has been blocked for 12 months after the infringement day; and

                     (b)  as a result of the cash dealer's obtaining account information or signatory information after the commencement of this subsection, the account ceases to be blocked with respect to a signatory with respect to whom it had been blocked;

the cash dealer must, within 14 days after the day on which the dealer obtained the information, give the AUSTRAC CEO written notice that the account has become unblocked to that extent and for that reason.

             (9)  A cash dealer who contravenes subsection (8) or (8A) is guilty of an offence against this subsection punishable, upon conviction, by a fine of not more than 10 penalty units.

Note:          If a body corporate is convicted of an offence, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine that is not greater than 5 times the maximum fine that could be imposed by the court on an individual convicted of the same offence. The amount of a penalty unit is stated in section 4AA of that Act.

          (9A)  Subsection (9) is an offence of strict liability.

Note:          For strict liability , see section 6.1 of the Criminal Code .

           (10)  The regulations may prescribe:

                     (a)  an amount instead of an amount specified in subparagraph (1)(a)(iii) or (iv); or

                     (b)  a period instead of the period of 30 days last referred to in subparagraph (1)(a)(iv).