Commonwealth Numbered Acts

ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ACT 2006 (NO. 169, 2006) - SECT 64

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.

Note:          For exemptions, see section 67.

Funds transfer chain

             (2)  For the purposes of this Act:

                     (a)  the following persons are taken to form a funds transfer chain :

                              (i)  the ordering institution;

                             (ii)  each person (if any) interposed between the ordering institution and the beneficiary institution;

                            (iii)  the beneficiary institution; and

                     (b)  each person in the chain is to be known as an institution .

Obligations of ordering institution

             (3)  If the transfer instruction is accepted by the ordering institution at or through a permanent establishment of the ordering institution in Australia, then, before the ordering institution:

                     (a)  passes on the transfer instruction; or

                     (b)  dispatches the transfer instruction; or

                     (c)  takes any other action to carry out the transfer instruction;

the ordering institution must obtain the complete payer information.

Note:          For complete payer information , see section 71.

             (4)  If:

                     (a)  the transfer instruction is accepted by the ordering institution at or through a permanent establishment of the ordering institution in Australia; and

                     (b)  the AUSTRAC CEO, by written notice given to the ordering institution, requests the ordering institution to give the complete payer information to the AUSTRAC CEO;

the ordering institution must comply with the request within:

                     (c)  if the request was given to the ordering institution within 6 months after the acceptance of the transfer instruction by the ordering institution--3 business days after the day on which the request was given; or

                     (d)  otherwise--10 business days after the day on which the request was given.

Note:          For complete payer information , see section 71.

             (5)  If:

                     (a)  the transfer instruction is accepted by the ordering institution at or through a permanent establishment of the ordering institution in Australia; and

                     (b)  the beneficiary institution, by written notice given to the ordering institution, requests the ordering institution to give the complete payer information to the beneficiary institution;

the ordering institution must comply with the request within:

                     (c)  if the request was given to the ordering institution within 6 months after the acceptance of the transfer instruction by the ordering institution--3 business days after the day on which the request was given; or

                     (d)  otherwise--10 business days after the day on which the request was given.

Note:          For complete payer information , see section 71.

             (6)  If:

                     (a)  the ordering institution is in the funds transfer chain; and

                     (b)  the transfer instruction is accepted by the ordering institution at or through a permanent establishment of the ordering institution in Australia;

then, before the ordering institution passes on the transfer instruction to another person in the chain, the ordering institution must ensure that the instruction includes the required transfer information.

Note:          For required transfer information , see section 70.

Obligations of interposed institutions in the funds transfer chain

             (7)  If:

                     (a)  an institution is in the funds transfer chain; and

                     (b)  either:

                              (i)  the institution is an interposed institution and the transfer instruction is passed on to the institution at or through a permanent establishment of the institution in Australia; or

                             (ii)  the institution is an interposed institution and the transfer instruction is to be passed on by the institution at or through a permanent establishment of the institution in Australia; and

                     (c)  either:

                              (i)  the transfer instruction is accepted by the ordering institution at or through a permanent establishment of the ordering institution in Australia; or

                             (ii)  the making available by the beneficiary institution of the transferred money would take place at or through a permanent establishment of the beneficiary institution in Australia; and

                     (d)  some or all of the required transfer information was passed on to the institution by another institution in the funds transfer chain;

then:

                     (e)  if the transfer instruction was accepted by the ordering institution at or through a permanent establishment of the ordering institution in a foreign country--before passing on the transfer instruction to another institution in the chain, the interposed institution must ensure that the instruction includes the tracing information; or

                      (f)  in any other case--before passing on the transfer instruction to another institution in the chain, the interposed institution must ensure that the instruction includes so much of the required transfer information as was passed on to the interposed institution as mentioned in paragraph (d).

Note 1:       For required transfer information , see section 70.

Note 2:       For tracing information , see section 72.

Civil penalty

             (8)  Subsections (3), (4), (5), (6) and (7) are civil penalty provisions.