On 19 September 2008, AUSTRAC released a reporting
implementation policy to assist reporting entities with
new reporting obligations under the Anti-Money Laundering and
Counter-Terrorism Financing Act 2006 (AML/CTF
Act). Reporting entities will need to report suspicious
matters and, if applicable, threshold transactions and
international funds transfer instructions to AUSTRAC, commencing
from 12 December 2008.
The document is available on AUSTRAC's website at http://www.austrac.gov.au/amlctfact_reporting_implementation.html.
It sets out AUSTRAC's approved methods of reporting and its
policy on the processes that a reporting entity should undertake
for each approved method of reporting in order to implement the
relevant reporting obligations.
The objectives of the policy are:
To ensure a smooth transition for reporting entities that have
been reporting to AUSTRAC as cash dealers under the Financial
Transaction Reports Act 1988 (FTR) to
reporting under the AML/CTF Act
To provide new reporting entities with information regarding
various approved methods of reporting under the AML/CTF Act
To outline AUSTRAC's expectations regarding compliance with
the AML/CTF Act reporting obligations from 12 December 2008.
Reportable details forms
The policy outlines seven reportable details forms for reporting
Suspicious Matter Report
Threshold Transaction Report – financial and bullion
Threshold Transaction Report – investment,
superannuation and insurance
International Electronic Funds Transfer Instruction Report
International Funds Transfer Instruction Report –
under a designated remittance arrangement.
Where relevant, reporting entities must submit the forms
appropriate to the types of designated service(s) they provide.
Approved methods of reporting
AUSTRAC has designed a range of reporting methods to meet the
size and technology requirements of reporting entities. Under the
AML/CTF Act, AUSTRAC will permit four methods of reporting:
File submission/transmission using AUSTRAC's electronic
report file format specifications – AUSTRAC requires the
use of XML format files available on AUSTRAC Online
(online.austrac.gov.au – should we put the full link
instead so people can click through - https://online.austrac.gov.au/ao/login.seam)
and all reporting entities to undergo a 'test' process
prior to submitting reports. AUSTRAC Online is AUSTRAC's secure
internet-based system which aims to simplify the AML/CTF Act
implementation process for reporting entities
Single report data entry through AUSTRAC Online –
allows submission of individual reports
Multiple report data entry spreadsheet through AUSTRAC Online -
allows submission of multiple reports and available for reports of
international funds transfer instructions and threshold
transactions but not for the submission of suspicious matter
Paper – AUSTRAC will issue paper forms to reporting
entities that do not have the technical means to submit reports
electronically. Paper forms are to be ordered through AUSTRAC's
Help Desk. Paper records can only be submitted using AUSTRAC's
approved forms ordered through AUSTRAC's Help Desk.
AUSTRAC requires all reporting entities to submit reports
electronically where they have the technical means to do so and
their reporting volumes exceed 50 forms per year (all types
Reporting entities with reporting volumes of less than 50 forms
per year (all types aggregated) are encouraged to report
electronically but are not obliged to do so.
From 12 December 2008, all regulated entities (reporting
entities and cash dealers under the FTR) submitting reports
electronically under both AML/CTF Act and the FTR Act will be
required to do so via AUSTRAC Online.
AUSTRAC's expectations of compliance
Although AUSTRAC expects all reporting entities to be compliant
with the reporting obligations on 12 December 2008, it recognises
that, due to a variety of reasons, some entities may not be fully
compliant at that date. However, AUSTRAC expects an entity to take
reasonable steps towards compliance and will be fully compliant
with the reporting obligations at the latest by 12 March 2010.
AUSTRAC also expects those reporting entities that commence to
comply with the reporting obligations during the 15 month period to
provide reports to the AUSTRAC CEO for all threshold transactions
and international funds transfer transactions that occurred from 12
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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