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AUSTRAC releases interpretation obligations legislation

What's new?

AUSTRAC has released its interpretation of certain reporting obligations under anti-money laundering legislation, as part of its Public Legal Interpretation series.

It focuses on the requirements to report suspect transactions and suspicious matters under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and the Financial Transaction Reports Act 1988 (FTR Act).

AUSTRAC sets out its views on:

• the obligation to report suspect transactions within the meaning of section 16 of the FTR Act;
• the obligation to report suspicious matters within the meaning of section 41 of the AML/CTF Act; and
• the general prohibition on use of these reports as evidence.

Reports of suspect transactions are currently required from cash dealers under the FTR Act. Under the AML/CTF Act, all reporting entities will be required to submit suspicious matter reports to AUSTRAC from 12 December 2008.

AUSTRAC’s AML/CTF Act reporting implementation policy will be subject to a Bill which was recently introduced into Parliament.

This Bill provides for affected entities which currently report to AUSTRAC as cash dealers under the FTR Act to continue to report in the same way during their transition to the new reporting format.

This Bill, if enacted, would apply to suspicious matter reports (as well as the upcoming threshold transaction and international funds transfer instruction reports) made after 12 December 2008, until such time as entities are compliant with the AML/CTF reporting requirements, but not later than 11 March 2010.

This would assist entities with the transition from their FTR Act reporting obligations to their AML/CTF Act reporting obligations.

Further information

Contact your Certainty consultant at (02) 9238 8091 or enquiries@certaintycompliance.com.au

AUSTRAC website: www.austrac.gov.au