The anti-money laundering and counter-terrorism financing reforms were introduced into parliament today.
The reforms consist of:
- the Anti-Money Laundering and Counter-Terrorism Financing Bill 2006 (Bill), and
- the Anti-Money Laundering and Counter-Terrorism Financing (Transitional Provisions and Consequential Amendments) Bill 2006 (Consequential Bill).
The Bill aims to bring Australia into line with international best practice to deter money laundering and terrorism financing (see Explanatory Memorandum).
Certain parts of the Bill will become effective on the date of royal assent which is expected to be 1 January 2007. Other parts are implemented at periods of six, 12 and 24 months after the date of royal assent. In the Explanatory Memorandum to the Bill, the staggered implementation of each part of the Bill is said ‘to reflect the complexity of, and resources required for, each part of the Bill’.
The phases of implementation are listed below:
- 1 January 2007—Records of transactions, records of funds transfer instructions and various administrative parts
- 1 July 2007—Reporting obligations of reporting entities, correspondent banking and certain record-keeping requirements
- 1 January 2008—Identification procedures, AML/CTF programs and other record-keeping requirements
- 1 January 2009—Other identification procedures and reporting obligations of reporting entities.
There will be a prosecution-free period of 12 months from the date a section becomes active, provided that the business is making best endeavours to comply.
The primary goal of the Consequential Bill according to its Explanatory Memorandum is to amend various Acts (including the Financial Transaction Reports Act 1988) and to allow the provisions of the Bill to operate effectively.
The Attorney-General’s website has been revised significantly to reflect some key features of the reforms.
We are reviewing the bills and will publish further updates on this important development in due course.
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.
