Commonwealth Numbered Acts Commonwealth Numbered Acts
No. 169, 2006
Contents
1............ Short title............................................................................................ 2
2............ Commencement.................................................................................. 2
3............ Objects................................................................................................ 4
4............ Simplified outline................................................................................ 6
5............ Definitions.......................................................................................... 7
6............ Designated services........................................................................... 34
7............ Services provided jointly to 2 or more customers............................ 51
8............ Person‑to‑person electronic funds transfer instructions.................. 52
9............ Same‑person electronic funds transfer instructions.......................... 54
10.......... Designated remittance arrangements etc........................................... 56
11.......... Control test....................................................................................... 57
12.......... Owner‑managed branches of ADIs................................................... 57
13.......... Eligible gaming machine venues........................................................ 58
14.......... Residency......................................................................................... 58
15.......... Shell banks........................................................................................ 60
16.......... Electronic communications............................................................... 61
17.......... Bearer negotiable instruments........................................................... 61
18.......... Translation of foreign currency to Australian currency................... 61
19.......... Translation of e‑currency to Australian currency............................ 62
20.......... Clubs and associations...................................................................... 62
21.......... Permanent establishment.................................................................. 62
22.......... Officials of designated agencies etc................................................... 63
23.......... Continuity of partnerships............................................................... 64
24.......... Crown to be bound........................................................................... 64
25.......... Extension to external Territories....................................................... 64
26.......... Extra‑territorial application.............................................................. 65
Part 2--Identification procedures etc. 66
Division 1--Introduction 66
27.......... Simplified outline.............................................................................. 66
Division 2--Identification procedures for certain pre‑commencement customers 67
28.......... Identification procedures for certain pre‑commencement customers 67
29.......... Verification of identity of pre‑commencement customer etc........... 67
Division 3--Identification procedures for certain low‑risk services 69
30.......... Identification procedures for certain low‑risk services..................... 69
31.......... Verification of identity of low‑risk service customer etc................. 69
Division 4--Identification procedures etc. 71
32.......... Carrying out the applicable customer identification procedure before the commencement of the provision of a designated service............................................................................. 71
33.......... Special circumstances that justify carrying out the applicable customer identification procedure after the commencement of the provision of a designated service.................. 71
34.......... Carrying out the applicable customer identification procedure after the commencement of the provision of a designated service etc......................................................................................... 72
Division 5--Verification of identity etc. 74
35.......... Verification of identity of customer etc............................................ 74
Division 6--Ongoing customer due diligence 75
36.......... Ongoing customer due diligence........................................................ 75
Division 7--General provisions 76
37.......... Applicable customer identification procedures may be carried out by an agent of a reporting entity 76
38.......... Applicable customer identification procedures deemed to be carried out by a reporting entity 76
39.......... General exemptions.......................................................................... 77
Part 3--Reporting obligations 78
Division 1--Introduction 78
40.......... Simplified outline.............................................................................. 78
Division 2--Suspicious matters 79
41.......... Reports of suspicious matters.......................................................... 79
42.......... Exemptions....................................................................................... 81
Division 3--Threshold transactions 83
43.......... Reports of threshold transactions.................................................... 83
44.......... Exemptions....................................................................................... 83
Division 4--International funds transfer instructions 85
45.......... Reports of international funds transfer instructions........................ 85
46.......... International funds transfer instruction............................................ 86
Division 5--AML/CTF compliance reports 88
47.......... AML/CTF compliance reports........................................................ 88
48.......... Self‑incrimination.............................................................................. 89
Division 6--General provisions 90
49.......... Further information to be given to the AUSTRAC CEO etc........... 90
50.......... Request to obtain information about the identity of holders of foreign credit cards and foreign debit cards 91
51.......... Division 400 and Chapter 5 of the Criminal Code........................... 92
Part 4--Reports about cross‑border movements of physical currency and bearer negotiable instruments  93
Division 1--Introduction 93
52.......... Simplified outline.............................................................................. 93
Division 2--Reports about physical currency 94
53.......... Reports about movements of physical currency into or out of Australia 94
54.......... Timing of reports about physical currency movements................... 95
55.......... Reports about receipts of physical currency from outside Australia 97
56.......... Obligations of customs officers and police officers.......................... 98
57.......... Movements of physical currency out of Australia.......................... 98
58.......... Movements of physical currency into Australia.............................. 99
Division 3--Reports about bearer negotiable instruments 100
59.......... Reports about movements of bearer negotiable instruments into or out of Australia 100
60.......... Obligations of customs officers and police officers........................ 101
Division 4--Information about reporting obligations 102
61.......... Power to affix notices about reporting obligations......................... 102
62.......... Notice about reporting obligations to be given to travellers to Australia 103
Part 5--Electronic funds transfer instructions 104
Division 1--Introduction 104
63.......... Simplified outline............................................................................ 104
Division 2--2 or more institutions involved in the transfer 105
64.......... Electronic funds transfer instructions--2 or more institutions involved in the transfer 105
65.......... Request to include customer information in certain international electronic funds transfer instructions 108
Division 3--Only one institution involved in the transfer 111
66.......... Electronic funds transfer instructions--only one institution involved in the transfer 111
Division 4--General provisions 113
67.......... Exemptions..................................................................................... 113
68.......... Defence of relying on information supplied by another person..... 114
69.......... Division 400 and Chapter 5 of the Criminal Code......................... 114
70.......... Required transfer information......................................................... 114
71.......... Complete payer information.......................................................... 116
72.......... Tracing information........................................................................ 116
Part 6--Register of Providers of Designated Remittance Services 118
73.......... Simplified outline............................................................................ 118
74.......... Unregistered persons must not provide registrable designated remittance services 118
75.......... Register of Providers of Designated Remittance Services.............. 121
76.......... Registration..................................................................................... 122
77.......... Updating of entries on the Register of Providers of Designated Remittance Services 122
78.......... Removal of entries from the Register of Providers of Designated Remittance Services 123
79.......... Access to the Register of Providers of Designated Remittance Services 123
Part 7--Anti‑money laundering and counter‑terrorism financing programs 124
Division 1--Introduction 124
80.......... Simplified outline............................................................................ 124
Division 2--Reporting entity's obligations 125
81.......... Reporting entity must have an anti‑money laundering and counter‑terrorism financing program 125
82.......... Compliance with Part A of an anti‑money laundering and counter‑terrorism financing program 125
Division 3--Anti‑money laundering and counter‑terrorism financing programs 127
83.......... Anti‑money laundering and counter‑terrorism financing programs 127
84.......... Standard anti‑money laundering and counter‑terrorism financing program 127
85.......... Joint anti‑money laundering and counter‑terrorism financing program 129
86.......... Special anti‑money laundering and counter‑terrorism financing program 131
87.......... Revocation of adoption of anti‑money laundering and counter‑terrorism financing program 132
88.......... Different applicable customer identification procedures................ 132
89.......... Applicable customer identification procedures--agent of customer 133
90.......... Applicable customer identification procedures--customers other than individuals 134
91.......... Applicable customer identification procedures--disclosure certificates 136
Division 4--Other provisions 139
92.......... Request to obtain information from a customer............................. 139
93.......... Exemptions..................................................................................... 140
Part 8--Correspondent banking 141
94.......... Simplified outline............................................................................ 141
95.......... Prohibition of entry into correspondent banking relationships with shell banks etc. 141
96.......... Termination of correspondent banking relationship with shell bank etc. 142
97.......... Due diligence assessments before entering into correspondent banking relationships etc. 143
98.......... Regular due diligence assessments of correspondent banking relationships etc. 144
99.......... Other rules about correspondent banking relationships................. 146
100........ Geographical links.......................................................................... 146
Part 9--Countermeasures 147
101........ Simplified outline............................................................................ 147
102........ Countermeasures............................................................................ 147
103........ Sunsetting of regulations after 2 years............................................ 148
Part 10--Record‑keeping requirements 149
Division 1--Introduction 149
104........ Simplified outline............................................................................ 149
105........ Privacy Act not overridden by this Part........................................ 149
Division 2--Records of transactions etc. 150
106........ Records of designated services....................................................... 150
107........ Transaction records to be retained.................................................. 151
108........ Customer‑provided transaction documents to be retained............. 151
109........ Records relating to transferred ADI accounts................................ 152
110........ Retention of records relating to closed ADI accounts.................... 153
Division 3--Records of identification procedures 155
111........ Copying documents obtained in the course of carrying out an applicable custom identification procedure 155
112........ Making of records of identification procedures.............................. 155
113........ Retention of records of identification procedures.......................... 156
114........ Records of identification procedures deemed to have been carried out by a reporting entity 157
Division 4--Records about electronic funds transfer instructions 160
115........ Retention of records about electronic funds transfer instructions.. 160
Division 5--Records about anti‑money laundering and counter‑terrorism financing programs 162
116........ Records about anti‑money laundering and counter‑terrorism financing programs 162
Division 6--Records about due diligence assessments of correspondent banking relationships 164
117........ Retention of records of due diligence assessments of correspondent banking relationships 164
Division 7--General provisions 165
118........ Exemptions..................................................................................... 165
119........ This Part does not limit any other obligations............................... 165
Part 11--Secrecy and access 166
Division 1--Introduction 166
120........ Simplified outline............................................................................ 166
Division 2--Secrecy 167
121........ Secrecy--AUSTRAC information and AUSTRAC documents.... 167
122........ Secrecy--information obtained under section 49........................... 168
Division 3--Disclosure of information 171
123........ Offence of tipping off..................................................................... 171
124........ Report and information not admissible.......................................... 174
Division 4--Access to AUSTRAC information by agencies 176
Subdivision A--Access by the ATO to AUSTRAC information 176
125........ Access by the ATO to AUSTRAC information............................ 176
Subdivision B--Access by designated agencies to AUSTRAC information 177
126........ Access by designated agencies to AUSTRAC information............ 177
127........ Dealings with AUSTRAC information once accessed................... 178
128........ When AUSTRAC information can be passed on by an official of a designated agency 178
Subdivision C--Access by non‑designated Commonwealth agencies to AUSTRAC information 184
129........ Access by non‑designated Commonwealth agencies to AUSTRAC information 184
130........ Dealings with AUSTRAC information once accessed................... 184
131........ When AUSTRAC information can be passed on by an official of a non‑designated Commonwealth agency 185
Subdivision D--Communication of AUSTRAC information to foreign countries etc. 186
132........ Communication of AUSTRAC information to a foreign country etc. 186
133........ When the Director‑General of Security may communicate AUSTRAC information to a foreign intelligence agency........................................................................................................ 189
Division 5--Use of AUSTRAC information in court or tribunal proceedings 190
134........ Use of AUSTRAC information in court or tribunal proceedings... 190
Part 12--Offences 191
135........ Simplified outline............................................................................ 191
136........ False or misleading information...................................................... 191
137........ Producing false or misleading documents....................................... 192
138........ False documents............................................................................. 193
139........ Providing a designated service using a false customer name or customer anonymity 195
140........ Receiving a designated service using a false customer name or customer anonymity 195
141........ Customer commonly known by 2 or more different names--disclosure to reporting entity 196
142........ Conducting transactions so as to avoid reporting requirements relating to threshold transactions 197
143........ Conducting transfers so as to avoid reporting requirements relating to cross‑border movements of physical currency........................................................................................................ 198
Part 13--Audit  200
Division 1--Introduction 200
144........ Simplified outline............................................................................ 200
Division 2--Appointment of authorised officers and issue of identity cards 201
145........ Appointment of authorised officers............................................... 201
146........ Identity cards.................................................................................. 201
Division 3--Powers of authorised officers 203
Subdivision A--Monitoring powers 203
147........ Authorised officer may enter premises by consent or under a monitoring warrant 203
148........ Monitoring powers of authorised officers...................................... 203
149........ Tampering or interfering with things secured in the exercise of monitoring powers 205
Subdivision B--Powers of authorised officers to ask questions and seek production of documents 206
150........ Authorised officer may ask questions and seek production of documents 206
Division 4--Obligations and incidental powers of authorised officers 208
151........ Authorised officer must produce identity card on request............. 208
152........ Consent........................................................................................... 208
153........ Announcement before entry........................................................... 208
154........ Details of monitoring warrant to be given to occupier etc. before entry 209
155........ Use of electronic equipment in exercising monitoring powers....... 209
156........ Compensation for damage to electronic equipment........................ 211
Division 5--Occupier's rights and responsibilities 212
157........ Occupier entitled to be present during execution of monitoring warrant 212
158........ Occupier to provide authorised officer with facilities and assistance 212
Division 6--Monitoring warrants 213
159........ Monitoring warrants....................................................................... 213
160........ Magistrates--personal capacity..................................................... 214
Division 7--External audits 215
161........ External audits--risk management etc............................................ 215
162........ External audits--compliance.......................................................... 217
163........ External auditor may have regard to the results of previous audit. 219
164........ External auditors............................................................................. 219
Division 8--Money laundering and terrorism financing risk assessments 221
165........ Money laundering and terrorism financing risk assessments......... 221
Part 14--Information‑gathering powers 223
166........ Simplified outline............................................................................ 223
167........ Authorised officer may obtain information and documents........... 223
168........ Copying documents--reasonable compensation............................ 224
169........ Self‑incrimination............................................................................ 224
170........ Copies of documents...................................................................... 225
171........ Authorised officer may retain documents...................................... 225
172........ Division 400 and Chapter 5 of the Criminal Code......................... 225
Part 15--Enforcement 226
Division 1--Introduction 226
173........ Simplified outline............................................................................ 226
Division 2--Civil penalties 227
174........ Ancillary contravention of civil penalty provision........................ 227
175........ Civil penalty orders........................................................................ 227
176........ Who may apply for a civil penalty order....................................... 229
177........ 2 or more proceedings may be heard together................................ 229
178........ Time limit for application for an order........................................... 229
179........ Civil evidence and procedure rules for civil penalty orders............ 229
180........ Civil proceedings after criminal proceedings.................................. 229
181........ Criminal proceedings during civil proceedings................................ 229
182........ Criminal proceedings after civil proceedings.................................. 230
183........ Evidence given in proceedings for penalty not admissible in criminal proceedings 230
Division 3--Infringement notices for unreported cross‑border movements of physical currency and bearer negotiable instruments 231
184........ When an infringement notice can be given...................................... 231
185........ Matters to be included in an infringement notice........................... 231
186........ Amount of penalty......................................................................... 232
187........ Withdrawal of an infringement notice............................................. 232
188........ What happens if the penalty is paid.............................................. 232
189........ Effect of this Division on criminal and civil proceedings............... 233
Division 4--Monitoring of compliance 234
190........ Monitoring of compliance.............................................................. 234
Division 5--Remedial directions 235
191........ Remedial directions......................................................................... 235
Division 6--Injunctions 236
192........ Injunctions...................................................................................... 236
193........ Interim injunctions.......................................................................... 236
194........ Discharge etc. of injunctions........................................................... 237
195........ Certain limits on granting injunctions not to apply........................ 237
196........ Other powers of the Federal Court unaffected............................... 238
Division 7--Enforceable undertakings 239
197........ Acceptance of undertakings............................................................ 239
198........ Enforcement of undertakings.......................................................... 239
Division 8--Powers of questioning, search and arrest in relation to cross‑border movements of physical currency and bearer negotiable instruments 241
199........ Questioning and search powers in relation to physical currency... 241
200........ Questioning and search powers in relation to bearer negotiable instruments 244
201........ Arrest without warrant................................................................... 249
Division 9--Notices to reporting entities 251
202........ Notices to reporting entities........................................................... 251
203........ Contents of notices to reporting entities........................................ 252
204........ Breaching a notice requirement....................................................... 252
205........ Self‑incrimination............................................................................ 253
206........ Division 400 and Chapter 5 of the Criminal Code......................... 253
207........ Disclosing existence or nature of notice.......................................... 253
Part 16--Administration 255
Division 1--Introduction 255
208........ Simplified outline............................................................................ 255
Division 2--Establishment and function of AUSTRAC 256
209........ Establishment of AUSTRAC......................................................... 256
210........ Function of AUSTRAC................................................................. 256
Division 3--Chief Executive Officer of AUSTRAC 257
Subdivision A--Office and functions of the AUSTRAC CEO 257
211........ AUSTRAC CEO............................................................................ 257
212........ Functions of the AUSTRAC CEO................................................. 257
213........ Policy principles............................................................................. 259
Subdivision B--Appointment of the AUSTRAC CEO etc. 259
214........ Appointment of the AUSTRAC CEO etc..................................... 259
215........ Remuneration and allowances of the AUSTRAC CEO................. 260
216........ Leave of absence of the AUSTRAC CEO...................................... 260
217........ Resignation of the AUSTRAC CEO.............................................. 260
218........ Notification of possible conflict of interest by the AUSTRAC CEO 260
219........ Termination of the AUSTRAC CEO's appointment.................... 261
220........ Other terms and conditions............................................................ 262
221........ Acting appointments...................................................................... 262
222........ Delegation by the AUSTRAC CEO............................................... 263
223........ Secretary may require the AUSTRAC CEO to give information... 263
Division 4--Staff of AUSTRAC etc. 264
224........ Staff of AUSTRAC........................................................................ 264
225........ Consultants and persons seconded to AUSTRAC........................ 264
Division 5--Reports and information 265
226........ Annual report................................................................................. 265
227........ Minister may require the AUSTRAC CEO to prepare reports or give information 265
Division 6--Directions by Minister 267
228........ Directions by Minister................................................................... 267
Division 7--AML/CTF Rules 268
229........ AML/CTF Rules............................................................................ 268
Part 17--Vicarious liability 269
230........ Simplified outline............................................................................ 269
231........ Criminal liability of corporations................................................... 269
232........ Civil liability of corporations......................................................... 269
233........ Liability of persons other than corporations.................................. 270
Part 18--Miscellaneous 271
234........ Simplified outline............................................................................ 271
235........ Protection from liability................................................................. 272
236........ Defence of taking reasonable precautions, and exercising due diligence, to avoid a contravention 273
237........ Treatment of partnerships.............................................................. 273
238........ Treatment of unincorporated associations..................................... 274
239........ Treatment of trusts with multiple trustees.................................... 274
240........ Concurrent operation of State and Territory laws......................... 275
241........ Act not to limit other powers......................................................... 275
242........ Law relating to legal professional privilege not affected................. 275
243........ Validity of transactions.................................................................. 276
244........ Reports to the AUSTRAC CEO etc.............................................. 276
245........ Arrangements with Governors of States etc................................... 276
246........ This Act does not limit other information‑gathering powers......... 277
247........ General exemptions........................................................................ 278
248........ Exemptions and modifications by the AUSTRAC CEO............... 278
249........ Specification by class..................................................................... 279
250........ Schedule 1 (alternative constitutional basis)................................... 279
251........ Review of operation of Act............................................................ 279
252........ Regulations..................................................................................... 280
Schedule 1--Alternative constitutional basis 281
1............ Alternative constitutional basis...................................................... 281
Anti-Money Laundering and Counter-Terrorism Financing Act 2006
No. 169, 2006
An Act to combat money laundering and the financing of terrorism, and for other purposes
[Assented to 12 December 2006]
The Parliament of Australia enacts: