Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Act No. 169 of 2006 as amended

This compilation was prepared on 18 April 2007
taking into account amendments up to Act No. 52 of 2007

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra

  

  

  

Contents

Part 1—Introduction                                                                                                              1

1............ Short title [see Note 1]....................................................................... 1

2............ Commencement.................................................................................. 1

3............ Objects................................................................................................ 3

4............ Simplified outline................................................................................ 5

5............ Definitions.......................................................................................... 6

6............ Designated services........................................................................... 32

7............ Services provided jointly to 2 or more customers............................ 50

8............ Person‑to‑person electronic funds transfer instructions.................. 50

9............ Same‑person electronic funds transfer instructions.......................... 52

10.......... Designated remittance arrangements etc........................................... 54

11.......... Control test....................................................................................... 55

12.......... Owner‑managed branches of ADIs................................................... 55

13.......... Eligible gaming machine venues........................................................ 56

14.......... Residency......................................................................................... 56

15.......... Shell banks........................................................................................ 58

16.......... Electronic communications............................................................... 59

17.......... Bearer negotiable instruments........................................................... 59

18.......... Translation of foreign currency to Australian currency................... 59

19.......... Translation of e‑currency to Australian currency............................ 60

20.......... Clubs and associations...................................................................... 60

21.......... Permanent establishment.................................................................. 60

22.......... Officials of designated agencies etc................................................... 61

23.......... Continuity of partnerships............................................................... 62

24.......... Crown to be bound........................................................................... 62

25.......... Extension to external Territories....................................................... 62

26.......... Extra‑territorial application.............................................................. 62

Part 2—Identification procedures etc.                                                                      63

Division 1—Introduction                                                                                          63

27.......... Simplified outline.............................................................................. 63

Division 2—Identification procedures for certain pre‑commencement customers         64

28.......... Identification procedures for certain pre‑commencement customers 64

29.......... Verification of identity of pre‑commencement customer etc........... 64

Division 3—Identification procedures for certain low‑risk services 66

30.......... Identification procedures for certain low‑risk services..................... 66

31.......... Verification of identity of low‑risk service customer etc................. 66

Division 4—Identification procedures etc.                                                     68

32.......... Carrying out the applicable customer identification procedure before the commencement of the provision of a designated service............................................................................. 68

33.......... Special circumstances that justify carrying out the applicable customer identification procedure after the commencement of the provision of a designated service.................. 68

34.......... Carrying out the applicable customer identification procedure after the commencement of the provision of a designated service etc......................................................................................... 69

Division 5—Verification of identity etc.                                                            71

35.......... Verification of identity of customer etc............................................ 71

Division 6—Ongoing customer due diligence                                               72

36.......... Ongoing customer due diligence........................................................ 72

Division 7—General provisions                                                                            73

37.......... Applicable customer identification procedures may be carried out by an agent of a reporting entity    73

38.......... Applicable customer identification procedures deemed to be carried out by a reporting entity             73

39.......... General exemptions.......................................................................... 74

Part 3—Reporting obligations                                                                                       75

Division 1—Introduction                                                                                          75

40.......... Simplified outline.............................................................................. 75

Division 2—Suspicious matters                                                                            76

41.......... Reports of suspicious matters.......................................................... 76

42.......... Exemptions....................................................................................... 78

Division 3—Threshold transactions                                                                   80

43.......... Reports of threshold transactions.................................................... 80

44.......... Exemptions....................................................................................... 80

Division 4—International funds transfer instructions                               82

45.......... Reports of international funds transfer instructions........................ 82

46.......... International funds transfer instruction............................................ 83

Division 5—AML/CTF compliance reports                                                   85

47.......... AML/CTF compliance reports........................................................ 85

48.......... Self‑incrimination.............................................................................. 86

Division 6—General provisions                                                                            87

49.......... Further information to be given to the AUSTRAC CEO etc........... 87

50.......... Request to obtain information about the identity of holders of foreign credit cards and foreign debit cards          88

51.......... Division 400 and Chapter 5 of the Criminal Code........................... 89

Part 4—Reports about cross‑border movements of physical currency and bearer negotiable instruments                                                                                                                                      90

Division 1—Introduction                                                                                          90

52.......... Simplified outline.............................................................................. 90

Division 2—Reports about physical currency                                               91

53.......... Reports about movements of physical currency into or out of Australia               91

54.......... Timing of reports about physical currency movements................... 92

55.......... Reports about receipts of physical currency from outside Australia 94

56.......... Obligations of customs officers and police officers.......................... 95

57.......... Movements of physical currency out of Australia.......................... 95

58.......... Movements of physical currency into Australia.............................. 95

Division 3—Reports about bearer negotiable instruments                   96

59.......... Reports about movements of bearer negotiable instruments into or out of Australia             96

60.......... Obligations of customs officers and police officers.......................... 97

Division 4—Information about reporting obligations                                98

61.......... Power to affix notices about reporting obligations........................... 98

62.......... Notice about reporting obligations to be given to travellers to Australia                99

Part 5—Electronic funds transfer instructions                                                   100

Division 1—Introduction                                                                                        100

63.......... Simplified outline............................................................................ 100

Division 2—2 or more institutions involved in the transfer                101

64.......... Electronic funds transfer instructions—2 or more institutions involved in the transfer         101

65.......... Request to include customer information in certain international electronic funds transfer instructions                104

Division 3—Only one institution involved in the transfer                    107

66.......... Electronic funds transfer instructions—only one institution involved in the transfer            107

Division 4—General provisions                                                                          109

67.......... Exemptions..................................................................................... 109

68.......... Defence of relying on information supplied by another person..... 110

69.......... Division 400 and Chapter 5 of the Criminal Code......................... 111

70.......... Required transfer information......................................................... 111

71.......... Complete payer information.......................................................... 112

72.......... Tracing information........................................................................ 113

Part 6—Register of Providers of Designated Remittance Services      114

73.......... Simplified outline............................................................................ 114

74.......... Unregistered persons must not provide registrable designated remittance services                114

75.......... Register of Providers of Designated Remittance Services.............. 117

76.......... Registration..................................................................................... 117

77.......... Updating of entries on the Register of Providers of Designated Remittance Services             118

78.......... Removal of entries from the Register of Providers of Designated Remittance Services          118

79.......... Access to the Register of Providers of Designated Remittance Services 119

79A....... Evidentiary certificates................................................................... 119

Part 7—Anti‑money laundering and counter‑terrorism financing programs              121

Division 1—Introduction                                                                                        121

80.......... Simplified outline............................................................................ 121

Division 2—Reporting entity’s obligations                                                   122

81.......... Reporting entity must have an anti‑money laundering and counter‑terrorism financing program           122

82.......... Compliance with Part A of an anti‑money laundering and counter‑terrorism financing program           122

Division 3—Anti‑money laundering and counter‑terrorism financing programs              124

83.......... Anti‑money laundering and counter‑terrorism financing programs 124

84.......... Standard anti‑money laundering and counter‑terrorism financing program             124

85.......... Joint anti‑money laundering and counter‑terrorism financing program 126

86.......... Special anti‑money laundering and counter‑terrorism financing program                128

87.......... Revocation of adoption of anti‑money laundering and counter‑terrorism financing program 129

88.......... Different applicable customer identification procedures................ 129

89.......... Applicable customer identification procedures—agent of customer 130

90.......... Applicable customer identification procedures—customers other than individuals               131

91.......... Applicable customer identification procedures—disclosure certificates 132

Division 4—Other provisions                                                                              135

92.......... Request to obtain information from a customer............................. 135

93.......... Exemptions..................................................................................... 136

Part 8—Correspondent banking                                                                                 137

94.......... Simplified outline............................................................................ 137

95.......... Prohibition of entry into correspondent banking relationships with shell banks etc.             137

96.......... Termination of correspondent banking relationship with shell bank etc.                138

97.......... Due diligence assessments before entering into correspondent banking relationships etc.      139

98.......... Regular due diligence assessments of correspondent banking relationships etc.     140

99.......... Other rules about correspondent banking relationships................. 141

100........ Geographical links.......................................................................... 142

Part 9—Countermeasures                                                                                              143

101........ Simplified outline............................................................................ 143

102........ Countermeasures............................................................................ 143

103........ Sunsetting of regulations after 2 years............................................ 144

Part 10—Record‑keeping requirements                                                                145

Division 1—Introduction                                                                                        145

104........ Simplified outline............................................................................ 145

105........ Privacy Act not overridden by this Part........................................ 145

Division 2—Records of transactions etc.                                                       146

106........ Records of designated services....................................................... 146

107........ Transaction records to be retained.................................................. 146

108........ Customer‑provided transaction documents to be retained............. 147

109........ Records relating to transferred ADI accounts................................ 148

110........ Retention of records relating to closed ADI accounts.................... 149

Division 3—Records of identification procedures                                    151

111........ Copying documents obtained in the course of carrying out an applicable custom identification procedure           151

112........ Making of records of identification procedures.............................. 151

113........ Retention of records of identification procedures.......................... 152

114........ Records of identification procedures deemed to have been carried out by a reporting entity 153

Division 4—Records about electronic funds transfer instructions  155

115........ Retention of records about electronic funds transfer instructions.. 155

Division 5—Records about anti‑money laundering and counter‑terrorism financing programs              157

116........ Records about anti‑money laundering and counter‑terrorism financing programs   157

Division 6—Records about due diligence assessments of correspondent banking relationships          159

117........ Retention of records of due diligence assessments of correspondent banking relationships   159

Division 7—General provisions                                                                          160

118........ Exemptions..................................................................................... 160

119........ This Part does not limit any other obligations............................... 160

Part 11—Secrecy and access                                                                                       161

Division 1—Introduction                                                                                        161

120........ Simplified outline............................................................................ 161

Division 2—Secrecy                                                                                                  162

121........ Secrecy—AUSTRAC information and AUSTRAC documents.... 162

122........ Secrecy—information obtained under section 49........................... 163

Division 3—Disclosure of information                                                             166

123........ Offence of tipping off..................................................................... 166

124........ Report and information not admissible.......................................... 169

Division 4—Access to AUSTRAC information by agencies                171

Subdivision A—Access by the ATO to AUSTRAC information                     171

125........ Access by the ATO to AUSTRAC information............................ 171

Subdivision B—Access by designated agencies to AUSTRAC information 171

126........ Access by designated agencies to AUSTRAC information............ 171

127........ Dealings with AUSTRAC information once accessed................... 173

128........ When AUSTRAC information can be passed on by an official of a designated agency          173

Subdivision C—Access by non‑designated Commonwealth agencies to AUSTRAC information    179

129........ Access by non‑designated Commonwealth agencies to AUSTRAC information   179

130........ Dealings with AUSTRAC information once accessed................... 180

131........ When AUSTRAC information can be passed on by an official of a non‑designated Commonwealth agency        180

Subdivision D—Communication of AUSTRAC information to foreign countries etc.       182

132........ Communication of AUSTRAC information to a foreign country etc. 182

133........ When the Director‑General of Security may communicate AUSTRAC information to a foreign intelligence agency........................................................................................................ 184

133A..... When the Director‑General of ASIS may communicate AUSTRAC information to a foreign intelligence agency 184

Division 5—Use of AUSTRAC information in court or tribunal proceedings    186

134........ Use of AUSTRAC information in court or tribunal proceedings... 186

Part 12—Offences                                                                                                              187

135........ Simplified outline............................................................................ 187

136........ False or misleading information...................................................... 187

137........ Producing false or misleading documents....................................... 188

138........ False documents............................................................................. 189

139........ Providing a designated service using a false customer name or customer anonymity              190

140........ Receiving a designated service using a false customer name or customer anonymity              191

141........ Customer commonly known by 2 or more different names—disclosure to reporting entity  192

142........ Conducting transactions so as to avoid reporting requirements relating to threshold transactions         192

143........ Conducting transfers so as to avoid reporting requirements relating to cross‑border movements of physical currency........................................................................................................ 193

Part 13—Audit                                                                                                                      195

Division 1—Introduction                                                                                        195

144........ Simplified outline............................................................................ 195

Division 2—Appointment of authorised officers and issue of identity cards       196

145........ Appointment of authorised officers............................................... 196

146........ Identity cards.................................................................................. 196

Division 3—Powers of authorised officers                                                    198

Subdivision A—Monitoring powers                                                                     198

147........ Authorised officer may enter premises by consent or under a monitoring warrant                198

148........ Monitoring powers of authorised officers...................................... 198

149........ Tampering or interfering with things secured in the exercise of monitoring powers               200

Subdivision B—Powers of authorised officers to ask questions and seek production of documents              201

150........ Authorised officer may ask questions and seek production of documents             201

Division 4—Obligations and incidental powers of authorised officers 203

151........ Authorised officer must produce identity card on request............. 203

152........ Consent........................................................................................... 203

153........ Announcement before entry........................................................... 203

154........ Details of monitoring warrant to be given to occupier etc. before entry 204

155........ Use of electronic equipment in exercising monitoring powers....... 204

156........ Compensation for damage to electronic equipment........................ 205

Division 5—Occupier’s rights and responsibilities                                  207

157........ Occupier entitled to be present during execution of monitoring warrant 207

158........ Occupier to provide authorised officer with facilities and assistance 207

Division 6—Monitoring warrants                                                                       208

159........ Monitoring warrants....................................................................... 208

160........ Magistrates—personal capacity..................................................... 209

Division 7—External audits                                                                                  210

161........ External audits—risk management etc............................................ 210

162........ External audits—compliance.......................................................... 212

163........ External auditor may have regard to the results of previous audit. 214

164........ External auditors............................................................................. 214

164A..... Review of decisions........................................................................ 214

Division 8—Money laundering and terrorism financing risk assessments         216

165........ Money laundering and terrorism financing risk assessments......... 216

Part 14—Information‑gathering powers                                                                 218

166........ Simplified outline............................................................................ 218

167........ Authorised officer may obtain information and documents........... 218

168........ Copying documents—reasonable compensation............................ 219

169........ Self‑incrimination............................................................................ 219

170........ Copies of documents...................................................................... 220

171........ Authorised officer may retain documents...................................... 220

172........ Division 400 and Chapter 5 of the Criminal Code......................... 220

Part 15—Enforcement                                                                                                      221

Division 1—Introduction                                                                                        221

173........ Simplified outline............................................................................ 221

Division 2—Civil penalties                                                                                    222

174........ Ancillary contravention of civil penalty provision........................ 222

175........ Civil penalty orders........................................................................ 222

176........ Who may apply for a civil penalty order....................................... 223

177........ 2 or more proceedings may be heard together................................ 224

178........ Time limit for application for an order........................................... 224

179........ Civil evidence and procedure rules for civil penalty orders............ 224

180........ Civil proceedings after criminal proceedings.................................. 224

181........ Criminal proceedings during civil proceedings................................ 224

182........ Criminal proceedings after civil proceedings.................................. 224

183........ Evidence given in proceedings for penalty not admissible in criminal proceedings 225

Division 3—Infringement notices for unreported cross‑border movements of physical currency and bearer negotiable instruments                                                  226

184........ When an infringement notice can be given...................................... 226

185........ Matters to be included in an infringement notice........................... 226

186........ Amount of penalty......................................................................... 227

187........ Withdrawal of an infringement notice............................................. 227

188........ What happens if the penalty is paid.............................................. 227

189........ Effect of this Division on criminal and civil proceedings............... 228

Division 4—Monitoring of compliance                                                            229

190........ Monitoring of compliance.............................................................. 229

Division 5—Remedial directions                                                                        230

191........ Remedial directions......................................................................... 230

191A..... Review of decisions........................................................................ 230

Division 6—Injunctions                                                                                           232

192........ Injunctions...................................................................................... 232

193........ Interim injunctions.......................................................................... 232

194........ Discharge etc. of injunctions........................................................... 233

195........ Certain limits on granting injunctions not to apply........................ 233

196........ Other powers of the Federal Court unaffected............................... 234

Division 7—Enforceable undertakings                                                           235

197........ Acceptance of undertakings............................................................ 235

198........ Enforcement of undertakings.......................................................... 236

Division 8—Powers of questioning, search and arrest in relation to cross‑border movements of physical currency and bearer negotiable instruments                     237

199........ Questioning and search powers in relation to physical currency... 237

200........ Questioning and search powers in relation to bearer negotiable instruments          240

201........ Arrest without warrant................................................................... 245

Division 9—Notices to reporting entities                                                      246

202........ Notices to reporting entities........................................................... 246

203........ Contents of notices to reporting entities........................................ 247

204........ Breaching a notice requirement....................................................... 247

205........ Self‑incrimination............................................................................ 248

206........ Division 400 and Chapter 5 of the Criminal Code......................... 248

207........ Disclosing existence or nature of notice.......................................... 248

Part 16—Administration                                                                                                  250

Division 1—Introduction                                                                                        250

208........ Simplified outline............................................................................ 250

Division 2—Establishment and function of AUSTRAC                          251

209........ Establishment of AUSTRAC......................................................... 251

210........ Function of AUSTRAC................................................................. 251

Division 3—Chief Executive Officer of AUSTRAC                                 252

Subdivision A—Office and functions of the AUSTRAC CEO                         252

211........ AUSTRAC CEO............................................................................ 252

212........ Functions of the AUSTRAC CEO................................................. 252

213........ Policy principles............................................................................. 254

Subdivision B—Appointment of the AUSTRAC CEO etc.                               254

214........ Appointment of the AUSTRAC CEO etc..................................... 254

215........ Remuneration and allowances of the AUSTRAC CEO................. 255

216........ Leave of absence of the AUSTRAC CEO...................................... 255

217........ Resignation of the AUSTRAC CEO.............................................. 255

218........ Notification of possible conflict of interest by the AUSTRAC CEO 255

219........ Termination of the AUSTRAC CEO’s appointment.................... 256

220........ Other terms and conditions............................................................ 257

221........ Acting appointments...................................................................... 257

222........ Delegation by the AUSTRAC CEO............................................... 257

223........ Secretary may require the AUSTRAC CEO to give information... 258

Division 4—Staff of AUSTRAC etc.                                                                  259

224........ Staff of AUSTRAC........................................................................ 259

225........ Consultants and persons seconded to AUSTRAC........................ 259

Division 5—Reports and information                                                               260

226........ Annual report................................................................................. 260

227........ Minister may require the AUSTRAC CEO to prepare reports or give information               260

Division 6—Directions by Minister                                                                  261

228........ Directions by Minister................................................................... 261

Division 7—AML/CTF Rules                                                                              262

229........ AML/CTF Rules............................................................................ 262

Part 17—Vicarious liability                                                                                            263

230........ Simplified outline............................................................................ 263

231........ Criminal liability of corporations................................................... 263

232........ Civil liability of corporations.........................................................