Commonwealth Numbered Acts

FINANCIAL TRANSACTION REPORTS AMENDMENT ACT 1997 No. 33 of 1997 - SCHEDULE 1

Schedule 1-Amendment of the Financial Transaction 
Reports Act 1988  1 Subsection 3(1) (definition of authorised officer)
Repeal the definition, substitute:
authorised officer means a person in respect of whom an appointment as an
authorised officer for the purposes of this Act is in force under section 27A.
2 Subsection 3(1)
Insert:
bullion seller means a person who carries on a business of selling bullion. 3
Subsection 3(1)
Insert:
business hours, in relation to a place, means the period between 9 am and 5 pm
on a day other than:

   (a)  a Saturday; or

   (b)  a Sunday; or

   (c)  a day that is a public holiday in that place. 4 Subsection 3(1)
Insert:
business premises, in relation to a person, means premises, or a part of
premises, of the person used, wholly or partly, for the purposes of business
operations of the person, but does not include premises, or a part of
premises, used as a place of residence. 5 Subsection 3(1) (paragraph (j) of
the definition of cash dealer)
Repeal the paragraph, substitute:

   (j)  a person who is a bullion seller. 6 Subsection 3(1) (subparagraph
        (k)(i) of the definition of cash dealer)
Repeal the subparagraph, substitute:

   (i)  collecting, holding, exchanging or remitting currency, or otherwise
        negotiating currency transfers, on behalf of other persons; or 7
        Subsection 3(1) (at the end of subparagraph (k)(ii) of the definition
        of cash dealer)
Omit "and", substitute "or". 8 Subsection 3(1) (definition of customs officer)
Omit "Comptroller-General", substitute "Chief Executive Officer". 9 Subsection
3(1) (paragraph (a) of the definition of FTR information)
Omit "18(5) or (7)", substitute "18(8A)". 10 Subsection 3(1) (definition of
futures broker)
Repeal the definition, substitute:
futures broker means a person who carries on a business of dealing in futures
contracts (within the meaning of the Corporations Law) on behalf of other
persons. 11 Subsection 3(1) (at the end of the definition of identification
record)
Add "or section 24C, as the context requires". 12 Subsection 3(1)
Insert:
paper money means money comprising a note written, printed or otherwise made
on paper or any other material. 13 Subsection 3(1) (definition of securities
dealer)
Repeal the definition, substitute:
securities dealer means a person who carries on a securities business within
the meaning of the Corporations Law. 14 Subsection 3(1)
Insert:
solicitor means a person who practises as a solicitor, whether by himself or
herself, as a member of a solicitor corporation or as a member of a
partnership of solicitors, and whether or not the person also practises as a
barrister. 15 Subsection 3(1)
Insert:
transaction, in Division 2 of Part II, has a meaning affected by subsection
3(7). 16 At the end of section 3
Add:

(7) Division 2 of Part II applies in relation to a proposal for a transaction,
or negotiations for a transaction, in the same way as it applies in relation
to a completed transaction. 17 Section 5
Omit "Northern Territory" (wherever occurring), substitute "Australian Capital
Territory". 18 Heading to Division 1 of Part II
Repeal the heading, substitute:
Division 1-Cash transaction reports by cash dealers Note: The heading to
section 7 is altered by adding at the end "by cash dealers". 19 Paragraph
8A(2)(a)
Omit "subsection", substitute "paragraph". 20 Sections 14 and 14A
Repeal the sections. 21 Before section 15
Insert:
Division 1A-Reports about transfers of currency 22 Paragraph 15(1)(b)
Omit "$5,000", substitute "$10,000". 23 Paragraph 15(5)(b)
Omit "$5,000", substitute "$10,000". 24 Subsection 15(6)
Repeal the subsection, substitute:

(6) A person who commits an offence against subsection (1) or (5) 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.
25 After subsection 15(7A)
Insert:

(7AA) For the purposes of subsection (7A), if currency is taken out of
Australia by a person by consignment of the currency:

   (a)  through the post to a place outside Australia; or

   (b)  to another person for carriage to a place outside Australia by that
        other person or by a third person; the time when the currency is taken
        out of Australia is the time when it is irrevocably committed by the
        first-mentioned person to the Australian Postal Corporation or to the
        other person, as the case may be. 26 After section 15
Insert:
Division 1B-Cash transaction reports by solicitors 15A Reports of significant
cash transactions

(1) If a significant cash transaction is entered into by or on behalf of a
solicitor, a solicitor corporation, or a partnership of solicitors, in the
course of practising as a solicitor or solicitors, the solicitor, corporation
or partnership must, before the end of the reporting period:

   (a)  prepare a report of the transaction; and

   (b)  communicate the information in the report to the Director.

(2) The report must:

   (a)  be prepared in the approved form; and

   (b)  contain the reportable details of the transaction; and

   (c)  be signed, or otherwise authenticated in an approved way, by the
        solicitor, a member of the corporation or a member of the partnership,
        as the case may be.

(3) The communication must be made to the Director:

   (a)  by giving the Director a copy of the report; or

   (b)  in any other manner and form approved in relation to the solicitor,
        the solicitor corporation or the partnership or in relation to
        solicitors generally.

(4) In this section:
reportable details, in relation to a transaction, means the details of the
transaction that are referred to in Schedule 3A. 27 After subsection 16(5A)
Insert:

(5AA) If a cash dealer gives further information pursuant to a request under
subsection (4), the cash dealer must not, unless required to do so under this
Act or any other Act, disclose to anyone else:

   (a)  that the information has been given; or

   (b)  any other information from which the person to whom the information is
        disclosed could reasonably be expected to infer that the
        first-mentioned information had been given. 28 Subsection 16(5B)
Repeal the subsection, substitute:

(5B) A cash dealer who contravenes subsection (5A) or (5AA) is guilty of an
offence 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. 29 Subsection 16(5C)
Repeal the subsection, substitute:

(5C) Neither subsection (5A) nor (5AA) prohibits a cash dealer from
communicating or disclosing to any court any information, or matter, referred
to in that subsection, but this subsection does not affect the operation of
subsection (5D). 30 Before subsection 16(6)
Insert:

(5D) In any legal proceeding other than a prosecution for an offence against
subsection 29(1) or 30(1):

   (a)  none of the following is admissible in evidence:

        (i)    a report prepared (whether before or after the commencement of
               this subsection) under subsection (1);

        (ii)   a copy of such a report;

        (iii)  a document purporting to set out information contained in such
               a report;

        (iv)   a document given (whether before or after the commencement of
               this subsection) under subsection (4); and

   (b)  evidence is not admissible as to:

        (i)    whether or not a report was prepared (whether before or after
               the commencement of this subsection) under subsection (1); or

        (ii)   whether or not a copy of a report prepared under that
               subsection (whether before or after the commencement of this
               subsection), or a document purporting to set out information
               contained in such a report, was given to, or received by, the
               Director (whether before or after the commencement of this
               subsection); or

        (iii)  whether or not particular information was contained in a report
               prepared under that subsection (whether before or after the
               commencement of this subsection); or

        (iv)   whether or not particular information was given under
               subsection (4) (whether before or after the commencement of
               this subsection).

(5E) In subsection (5D):
information includes the formation or existence of a suspicion referred to in
subsection (1). 31 Subsection 16(6)
Omit "Comptroller-General" (wherever occurring), substitute "Chief Executive
Officer". 32 Section 17A
Repeal the section. 33 Section 17G
Repeal the section. 34 Subsection 18(5)
Repeal the subsection. 35 Subsection 18(6)
Repeal the subsection, substitute:

(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. 36 Subsection
18(7)
Repeal the subsection. 37 After subsection 18(8)
Insert:

(8A) If:

   (a)  an account 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
        Director written notice that the account has become unblocked to that
        extent and for that reason. 38 Subsection 18(9)
Repeal the subsection, substitute:

(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. 39 Subsection 21(3A)
(penalty)
Repeal the penalty, substitute: Penalty: Imprisonment for 4 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. 40 Subsection
21A(3) (penalty)
Repeal the penalty, substitute: Penalty: Imprisonment for 4 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. 41 Subsection
22(2)
Repeal the subsection, substitute:

(2) A cash dealer who contravenes subsection (1) is guilty of an offence
against this subsection punishable, upon conviction, by imprisonment for a
period of 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. 42 Subsection 23(3)
Repeal the subsection. 43 At the end of subsection 23(8)
Add: Penalty: Imprisonment for 1 year. 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. 44 Subsection 23(9)
Repeal the subsection. 45 At the end of subsection 23A(3)
Add: Note: The amount of a penalty unit is stated in section 4AA of the Crimes
Act 1914. 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. 46 After subsection 24(2)
Insert:

(2A) A person must not operate, or authorise the operation of, an account with
a cash dealer if the account is in a false name. 47 Subsection 24(6)
Repeal the subsection, substitute:

(6) A person who contravenes subsection (1), (2), (2A), (3), (4) or (5) is
guilty of an offence against this subsection 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. 48 At the end of subsection 24(7)
Add:
; and (c) an account is in a false name if it was opened in a false name,
whether before or after the commencement of this paragraph. 49 After Part III
Insert:
PART IIIA-Bullion sellers 24A Definitions
bullion transaction means a transaction (other than an exempt transaction) in
relation to bullion.
exempt transaction, in relation to bullion, means a transaction in relation to
bullion in respect of which an exemption is in force under section 24B. 24B
Exemptions
The Director may, by signed writing, exempt from the application of this Part
all transactions, or a particular class of transactions, in relation to
bullion that may be entered into by a particular bullion seller. 24C Bullion
seller to hold identification record for other parties to bullion transaction

(1) A bullion seller must not enter into a bullion transaction unless the
seller has an identification record for the other party, or for each other
party, to the transaction. Penalty: Imprisonment for 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.

(2) For the purposes of subsection (1), a bullion seller has an identification
record for a party to a bullion transaction if, and only if, the seller is an
identifying cash dealer and:

   (a)  has carried out, and has a record of, the prescribed verification
        procedure to identify the party; or

   (b)  has carried out, and has a record of, a verification procedure to
        identify the party, being a procedure approved by the Director for the
        seller; whether or not the procedure was carried out in connection
        with the transaction. 24D Bullion seller to keep documents

(1) If a bullion seller makes or obtains a record of any information in the
course of obtaining information identifying a party to a bullion transaction,
the seller must retain the record or a copy of it for seven years after the
day on which the transaction occurs.

(2) If any information is part of information identifying a party to 2 or more
bullion transactions entered into by the bullion seller, subsection (1)
applies as if the reference to the day on which the transaction occurs were a
reference to the day on which the last of those transactions occurs.

(3) A bullion seller who is required to retain documents under subsection (1)
must retain and store them in a way that makes retrieval of the documents
reasonably practicable.

(4) Subsection (1) does not limit any other obligation of a bullion seller to
retain documents.

(5) If a bullion seller is required by law to release a document to which
subsection (1) applies before the end of the period referred to in that
subsection, the seller must retain a complete copy of the document until the
period has ended or the document is returned, whichever occurs first.

(6) The bullion seller must keep a register of documents released under
subsection (5). Penalty: Imprisonment for 1 year. 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. 50 Subsection
25(2) (penalty)
Repeal the penalty, substitute: Penalty: Imprisonment for 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. 51 Paragraph
26(1)(d)
Omit "Comptroller-General", substitute "Chief Executive Officer". 52 After
paragraph 27(1)(c)
Insert:

   (ca) the Director may, in writing, authorise a revenue authority of a State
        or Territory to have access to FTR information for the purpose of
        performing its functions if the authority undertakes that it will
        comply with the Information Privacy Principles set out in section 14
        of the Privacy Act 1988 in respect of FTR information obtained under
        the authorisation; and 53 Subsections 27(2) and (3)
Repeal the subsections, substitute:

(2) An authorisation under paragraph (1)(b), (c) or (ca) must state the FTR
information, or the class of FTR information, to which the law enforcement
agency, the Australian Customs Service or the revenue authority of a State or
Territory, as the case requires, is to have access.

(3) If a law enforcement agency, the Australian Customs Service or a revenue
authority of a State or Territory is authorised under paragraph (1)(b), (c) or
(ca) to have access to FTR information, any law enforcement officer performing
duties in or for the law enforcement agency, any customs officer, or any
approved senior officer of the revenue authority, as the case requires, is
entitled to access to that FTR information in accordance with the
authorisation. 54 Subsection 27(6)
Omit "or customs officer" (wherever occurring), substitute ", a customs
officer or an officer of a revenue authority". 55 Subsection 27(9)
Repeal the subsection, substitute:

(9) Nothing in subsection (5) or (6) prevents the NCA, a law enforcement
officer, a customs officer or an officer of a revenue authority from:

   (a)  communicating FTR information to the person who provided the
        information; or

   (b)  communicating FTR information (other than information obtained under
        section 16 or under section 243D of the Australian Securities 
        Commission Act 1989 ) in respect of the affairs of a person to:

        (i)    the person; or

        (ii)   if the person is a company-any person who is or has been a
               director or officer of the company or is or has been directly
               involved in, or responsible for, the preparation of information
               provided on behalf of the company. 56 Subsection 27(13)
Omit "a fine not exceeding $5,000 or imprisonment for a period not exceeding 2
years, or both", substitute "imprisonment for not more than 2 years". 57 At
the end of subsection 27(13)
Add: 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. 58 At the end of section 27
Add:

(18) A reference in this section to a revenue authority of a State or
Territory is a reference to a Department, authority or agency of a State or
Territory that has the responsibility of collecting or receiving revenue of
the State or Territory.

(19) A reference in this section to an approved senior officer of a revenue
authority of a State or Territory is a reference to an officer or employee of
the authority declared by the Director, in writing, to be an approved senior
officer of the authority for the purposes of this section. 59 After Part IV
Insert:
Part IVA-Powers of inspection 27A Authorised officers
The Director may, by signed writing, appoint a member of the staff of AUSTRAC
to be an authorised officer for the purposes of this Act. 27B Identity cards

(1) The Director must cause each authorised officer to be issued with an
identity card in a form approved by the Director and bearing a recent
photograph of the officer.

(2) A person who ceases to be an authorised officer must, as soon as
practicable, return his or her identity card to the Director.

(3) A person must not, without reasonable excuse, fail to comply with
subsection (2).

(4) A person who contravenes subsection (2) or (3) is guilty of an offence
against this subsection punishable, upon conviction, by a fine of not more
than 1 penalty unit.

(5) An authorised officer is not entitled to exercise any powers under this
Part in relation to premises if:

   (a)  the occupier of the premises has required the officer to produce his
        or her identity card for inspection by the occupier; and

   (b)  the officer fails to comply with the requirement. 27C Powers of
        inspection of premises of a cash dealer

(1) This section applies if an authorised officer is given access to business
premises of a cash dealer in compliance with a notice under section 27E.

(2) For the purpose of monitoring a cash dealer's compliance with sections 7,
16 and 17B, the officer may inspect:

   (a)  any records kept at, or accessible from, the premises that relate to
        the dealer's obligations under those sections; and

   (b)  any system used by the dealer at the premises for keeping those
        records; and

   (c)  any reports retained at, or accessible from, the premises under those
        sections; and

   (d)  any system used by the dealer in connection with:

        (i)    preparing reports under those sections; or

        (ii)   sending such reports to the Director; or

        (iii)  retaining such reports.

(3) For the purpose of monitoring a cash dealer's compliance with section 20
and any undertaking given under section 8A, the officer may inspect:

   (a)  records of account information and signatory information kept at, or
        accessible from, the premises; and

   (b)  any system used by the dealer at those premises for keeping such
        records.

(4) For the purpose of monitoring compliance, by a cash dealer who is a
bullion seller, with sections 24C and 24D, the officer may inspect:

   (a)  records of information compiled or obtained in the course of obtaining
        an identification record for a party to a bullion transaction, being
        records kept at, or accessible from, the premises; and

   (b)  any system used by the bullion seller at the premises for keeping such
        records.

(5) An authorised officer who is empowered under this section to inspect
records or reports of a cash dealer may also receive or make copies of, or
take extracts from, those records or reports. 27D Powers of inspection of
premises of a solicitor

(1) This section applies if an authorised officer is given access to business
premises of a solicitor, a solicitor corporation or a partnership of
solicitors in compliance with a notice under section 27E.

(2) For the purpose of monitoring compliance by the solicitor, corporation or
partnership with section 15A, the officer may inspect:

   (a)  any records kept at, or accessible from, the premises that relate to
        the obligations of the solicitor, corporation or partnership under
        that section; and

   (b)  any system used by the solicitor, corporation or partnership at the
        premises for keeping those records; and

   (c)  any reports retained at, or accessible from, the premises under that
        section; and

   (d)  any system used by the solicitor, corporation or partnership in
        connection with:

        (i)    preparing reports under that section; or

        (ii)   sending such reports to the Director; or

        (iii)  retaining such reports.

(3) An authorised officer who is empowered under this section to inspect
records or reports of a solicitor, a solicitor corporation or a partnership of
solicitors may also receive or make copies of, or take extracts from, those
records or reports. 27E Notice to give access to business premises

(1) The Director may, by written notice to a cash dealer, a solicitor, a
solicitor corporation or a partnership of solicitors, require the dealer,
solicitor, corporation or partnership to give the authorised officer named in
the notice access on the day and during the hours stated in the notice to the
business premises described in the notice of the dealer, solicitor,
corporation or partnership.

(2) The hours stated in the notice must occur during business hours in the
place where the business premises are situated.

(3) A cash dealer, a solicitor, a solicitor corporation or a partnership of
solicitors to whom or to which a notice is given under subsection (1) must
comply with the notice.

(4) If an authorised officer is given access to business premises in
compliance with a notice under this section, the officer is entitled to be
accompanied by a person engaged under section 40A for the purpose of receiving
advice from the person in connection with the exercise of the officer's powers
under this Part. 60 Paragraph 28(1)(b)
Repeal the paragraph, substitute:

   (b)  to comply with a notice as required by subsection 27E(3). 61
        Subsection 28(3)
Repeal the subsection, substitute:

(3) If a solicitor, a solicitor corporation or a partnership of solicitors
refuses or fails:

   (a)  to communicate information to the Director when required under section
        15A; or

   (b)  to comply with a notice as required by subsection 27E(3); the
        solicitor or corporation, or each member of the partnership, as the
        case may be, commits an offence against this section.

(4) A person who commits an offence against this section 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. 62 After
subsection 29(2)
Insert:

(2A) A person must not, in communicating information to the Director as
required under section 15A, knowingly:

   (a)  make a statement that is false or misleading in a material particular;
        or

   (b)  omit from a statement anything without which the statement is
        misleading in a material particular. 63 At the end of paragraphs
        29(4)(a) and (aa)
Add "or". 64 After paragraph 29(4)(aa) Insert:

   (ab) misleading a bullion seller in the carrying out of a verification
        procedure under paragraph 24C(2)(a) or (b); or 65 Paragraph 29(4)(b)
After "cash transaction", insert ", or of an international funds transfer
instruction,". 66 Subsection 29(5)
Repeal the subsection, substitute:

(5) A person who contravenes subsection (1), (2), (2A), (3) or (4) commits an
offence against this subsection punishable, upon conviction, by imprisonment
for not more than 5 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. 67 Subsection 30(3)
Repeal the subsection, substitute:

(3) A person commits an offence against this section if the person, in
communicating information to the Director in relation to a transaction as
required under section 15A, knowingly does so in such a way that the
information is incomplete in relation to the transaction.

(4) A person who commits an offence against this section is 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. 68
Subsection 31(3)
Repeal the subsection, substitute:

(3) A person who commits an offence against this section is punishable, upon
conviction, by imprisonment for not more than 5 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. 69 Subsection
33(9)
Repeal the subsection, substitute:

(9) A person who contravenes subsection (1) or (2) commits an offence against
this subsection punishable, upon conviction, by imprisonment for not more than
1 year. 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. 70 Subsection 33A(3) (penalty)
Repeal the penalty, substitute: Penalty: 10 penalty units. Note: The amount of
a penalty unit is stated in section 4AA of the Crimes Act 1914. 71 At the end
of subsection 34(2)
Add "unless the body corporate establishes that it took reasonable precautions
and exercised due diligence to avoid the conduct". 72 At the end of subsection
34(4)
Add "unless the first-mentioned person establishes that that person took
reasonable precautions and exercised due diligence to avoid the conduct". 73
Section 39
Repeal the section, substitute: 39 Delegation
The Director may, by signed writing, delegate to a member of the staff of
AUSTRAC all or any of the Director's powers under this Act or the regulations.
74 Section 42A
After "3", insert ", 3A". 75 After Schedule 3
Insert:
Schedule 3A-Reportable details for the purposes of section 15A 1 Reportable
details

(1) The reportable details of a significant cash transaction that a solicitor,
a solicitor corporation or a partnership must include in a report prepared
under subsection 15A(1) are set out in the following table.

(2) The reportable details required by items 3 and 4 of the table are those
details as known to the person making the report.
Reportable details of significant cash transactions
Item    Element of the transaction

Reportable details
1       The significant cash transaction

1.1 The nature of the transaction.
1.2 The date of the transaction.
1.3 The total amount of currency involved in the
transaction.
1.4 The total monetary amount of the transaction.
1.5 The foreign currency (if any) involved in the
transaction.
2       The solicitor, corporation or partnership

2.1 The name of the solicitor, corporation or
partnership.
2.2 The address of the office of the solicitor,
corporation or partnership or, if there is more than
one such office, the principal office.
2.3 The address of the place at which the transaction
was conducted.
3       Each other person who is a party to the transaction

3.1 The name or names of the person.
3.2 The business or residential address of the
person.
3.3 The occupation, business or principal activity of
the person.
3.4 The date of birth of the person.
4       Any person (the principal) on whose behalf another party to

the transaction conducted the transaction
4.1 The principal's name.
4.2 An address for the principal.
4.3 The principal's occupation (or, if appropriate,
the principal's business or principal activity).
5       Any cheque or banker's draft involved in the transaction

5.1 The name of the drawer of the cheque or banker's
draft.
5.2 The name of the payee, the favouree or the
beneficiary of the cheque or banker's draft (if any).
5.3 The name and branch of the financial institution
or foreign financial institution on which the cheque
or banker's draft was drawn, and the country in which
the branch is located. 76 Transitional and saving provisions

(1) A member of the staff of AUSTRAC who was an authorised officer immediately
before the commencement of this Act for the purposes of the
Financial Transaction Reports Act 1988 continues to be such an officer as if
he or she had been appointed under section 27A of that Act as amended by this
Act.

(2) A delegation in force under section 39 of the Financial  Transaction
Reports Act 1988 immediately before the commencement of this Act continues in
force as if it had been made under section 39 of that Act as amended by this
Act.

[Minister's second reading speech made in-
House of Representatives on 4 December 1996
Senate on 3 March 1997]