ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ACT 2006

Commonwealth Consolidated Acts

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ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ACT 2006

TABLE OF PROVISIONS

Long Title

PART 1--INTRODUCTION

1. Short title
2. Commencement
3. Objects
4. Simplified outline
5. Definitions
6. Designated services
7. Services provided jointly to 2 or more customers
8. Person - to - person electronic funds transfer instructions
9. Same - person electronic funds transfer instructions
10. Designated remittance arrangements etc.
11. Control test
12. Owner - managed branches of ADIs
13. Eligible gaming machine venues
14. Residency
15. Shell banks
16. Electronic communications
17. Bearer negotiable instruments
18. Translation of foreign currency to Australian currency
19. Translation of digital currency to Australian currency
20. Clubs and associations
21. Permanent establishment
22. Officials of Commonwealth, State or Territory agencies
23. Continuity of partnerships
24. Crown to be bound
25. Extension to external Territories
26. Extra - territorial application

PART 2--IDENTIFICATION--PROCEDURES ETC.

Division 1--Introduction

27. Simplified outline

Division 2--Identification procedures for certain pre-commencement customers

28. Identification procedures for certain pre - commencement customers
29. Verification of identity of pre - commencement customer etc.

Division 3--Identification procedures for certain low-risk services

30. Identification procedures for certain low - risk services
31. Verification of identity of low - risk service customer etc.

Division 4--Identification procedures etc.

32. Carrying out applicable customer identification procedure before commencement of provision of designated service
33. Special circumstances that justify carrying out the applicable customer identification procedure after the commencement of the provision of a designated service
34. Carrying out the applicable customer identification procedure after the commencement of the provision of a designated service etc.

Division 5--Verification of identity etc.

35. Verification of identity of customer etc.

Division 5A--Use and disclosure of personal information for the purposes of verifying an individual's identity

35A. Reporting entities may disclose certain personal information to credit reporting bodies for identity verification purposes
35B. Credit reporting bodies may use and disclose certain personal information for identity verification purposes
35C. Reporting entities to notify inability to verify identity
35D. Verification information not to be collected or held by a credit reporting body
35E. Retention of verification information--credit reporting bodies
35F. Retention of verification information--reporting entities
35G. Access to verification information
35H. Unauthorised access to verification information--offence
35J. Obtaining access to verification information by false pretences--offence
35K. Unauthorised use or disclosure of verification information--offence
35L. Breach of requirement is an interference with privacy

Division 6--Ongoing customer due diligence

36. Ongoing customer due diligence

Division 7--General provisions

37. Applicable customer identification procedures may be carried out by an agent of a reporting entity
37A. Reliance on applicable customer identification procedures or other procedures--agreements or arrangements
37B. Regular assessments of agreement or arrangement covered by section 37A
38. Reliance on applicable customer identification procedures or other procedures--other circumstances
39. General exemptions

PART 3--REPORTING--OBLIGATIONS

Division 1--Introduction

40. Simplified outline

Division 2--Suspicious matters

41. Reports of suspicious matters
42. Exemptions

Division 3--Threshold transactions

43. Reports of threshold transactions
44. Exemptions

Division 4--International funds transfer instructions

45. Reports of international funds transfer instructions
46. International funds transfer instruction

Division 5--AML/CTF compliance reports

47. AML/CTF compliance reports
48. Self - incrimination

Division 6--General provisions

49. Further information to be given to the AUSTRAC CEO etc.
49A. AML/CTF Rules may make provision in relation to reports by registered remittance affiliates
50. Request to obtain information about the identity of holders of foreign credit cards and foreign debit cards
50A. Secrecy--information obtained under section 49
51. Division 400 and Chapter 5 of the Criminal Code

PART 3A--REPORTING--ENTITIES ROLL

51A. Simplified outline
51B. Reporting entities must enrol
51C. Reporting Entities Roll
51D. Enrolment
51E. Applications for enrolment
51F. Enrolled persons to advise of change in enrolment details
51G. Removal of entries from the Reporting Entities Roll

PART 4--REPORTS--ABOUT CROSS-BORDER MOVEMENTS OF MONETARY INSTRUMENTS

Division 1--Simplified outline of this Part

52. Simplified outline of this Part

Division 2--Reports about monetary instruments

53. Reports about movements of monetary instruments into or out of Australia
54. Reports about receipts of monetary instruments moved into Australia
55. Movements of monetary instruments into Australia
56. Movements of monetary instruments out of Australia
57. Obligations of customs officers and police officers

Division 4--Information about reporting obligations

61. Power to affix notices about reporting obligations
62. Notice about reporting obligations to be given to travellers to Australia

PART 5--ELECTRONIC--FUNDS TRANSFER INSTRUCTIONS

Division 1--Introduction

63. Simplified outline

Division 2--2 or more institutions involved in the transfer

64. Electronic funds transfer instructions--2 or more institutions involved in the transfer
65. Request to include customer information in certain international electronic funds transfer instructions

Division 3--Only one institution involved in the transfer

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

Division 4--General provisions

67. Exemptions
68. Defence of relying on information supplied by another person
69. Division 400 and Chapter 5 of the Criminal Code
70. Required transfer information
71. Complete payer information
72. Tracing information

PART 6--THE--REMITTANCE SECTOR REGISTER

Division 1--Simplified outline

73. Simplified outline

Division 2--Restrictions on providing certain remittance services

74. Unregistered persons must not provide certain remittance services

Division 3--Registration of persons

75. Remittance Sector Register
75A. Information to be entered on the Remittance Sector Register
75B. Applications for registration
75C. Registration by AUSTRAC CEO
75D. Spent convictions scheme
75E. Registration may be subject to conditions
75F. When registration of a person ceases
75G. Cancellation of registration
75H. Suspension of registration
75J. Renewal of registration
75K. Removal of entries from the Remittance Sector Register
75L. AML/CTF Rules--general provision
75M. Registered persons to advise of material changes in circumstance etc.
75N. AUSTRAC CEO may request further information
75P. Immunity from suit
75Q. Steps to be taken by AUSTRAC CEO before making certain reviewable decisions

Division 5--Basis of registration

75T. Basis of registration

PART 6A--THE--DIGITAL CURRENCY EXCHANGE REGISTER

Division 1--Simplified outline

76. Simplified outline

Division 2--Restrictions on providing digital currency exchange services

76A. Unregistered persons must not provide certain digital currency exchange services

Division 3--Registration of persons

76B. Digital Currency Exchange Register
76C. Information to be entered on the Digital Currency Exchange Register
76D. Applications for registration
76E. Registration by AUSTRAC CEO
76F. Spent convictions scheme
76G. Registration may be subject to conditions
76H. When registration of a person ceases
76J. Cancellation of registration
76K. Suspension of registration
76L. Renewal of registration
76M. Removal of entries from the Digital Currency Exchange Register
76N. AML/CTF Rules--general provision
76P. Registered persons to advise of material changes in circumstance etc.
76Q. AUSTRAC CEO may request further information
76R. Immunity from suit
76S. Steps to be taken by AUSTRAC CEO before making certain reviewable decisions

Division 4--Basis of registration

76T. Basis of registration

PART 7--ANTI---MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING PROGRAMS

Division 1--Introduction

80. Simplified outline

Division 2--Reporting entity's obligations

81. Reporting entity must have an anti - money laundering and counter - terrorism financing program
82. Compliance with Part A of an anti - money laundering and counter - terrorism financing program

Division 3--Anti-money laundering and counter-terrorism financing programs

83. Anti - money laundering and counter - terrorism financing programs
84. Standard anti - money laundering and counter - terrorism financing program
85. Joint anti - money laundering and counter - terrorism financing program
86. Special anti - money laundering and counter - terrorism financing program
87. Revocation of adoption of anti - money laundering and counter - terrorism financing program
88. Different applicable customer identification procedures
89. Applicable customer identification procedures--agent of customer
90. Applicable customer identification procedures--customers other than individuals
91. Applicable customer identification procedures--disclosure certificates

Division 4--Other provisions

92. Request to obtain information from a customer
93. Exemptions

PART 8--CORRESPONDENT--BANKING

94. Simplified outline of this Part
95. Prohibitions on correspondent banking relationships involving shell banks
96. Due diligence assessments and records of correspondent banking relationships
100. Geographical links

PART 9--COUNTERMEASURES

101. Simplified outline
102. Countermeasures
103. Sunsetting of regulations after 2 years

PART 10--RECORD---KEEPING REQUIREMENTS

Division 1--Introduction

104. Simplified outline
105. Privacy Act not overridden by this Part

Division 2--Records of transactions etc.

106. Records of designated services
107. Transaction records to be retained
108. Customer - provided transaction documents to be retained
109. Records relating to transferred ADI accounts
110. Retention of records relating to closed ADI accounts

Division 3--Records in connection with the carrying out of identification procedures

111. Copying documents obtained in the course of carrying out an applicable custom identification procedure
112. Making of records of identification procedures
113. Retention of records of identification procedures
114. Retention of information if identification procedures taken to have been carried out by a reporting entity
114A. Retention of records of assessments of agreements or arrangements covered by section 37A

Division 4--Records about electronic funds transfer instructions

115. Retention of records about electronic funds transfer instructions

Division 5--Records about anti-money laundering and counter-terrorism financing programs

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

Division 6--Records about correspondent banking relationships

117. Retention of records about correspondent banking relationships

Division 7--General provisions

118. Exemptions
119. This Part does not limit any other obligations

PART 11--SECRECY--AND ACCESS

Division 1--Introduction

120. Simplified outline of this Part

Division 2--AUSTRAC entrusted persons

121. Offence--AUSTRAC entrusted persons

Division 3--Protection of information given under Part 3

123. Offence of tipping off
124. Report and information not admissible

Division 4--Access to AUSTRAC information by Commonwealth, State or Territory agencies

125. Access to AUSTRAC information
126. Dealings with AUSTRAC information

Division 5--Disclosure of AUSTRAC information to foreign countries or agencies

127. Disclosure of AUSTRAC information to foreign countries or agencies

Division 6--Unauthorised accessing of or use or disclosure of AUSTRAC information

128. Unauthorised accessing of AUSTRAC information
129. Use or disclosure of AUSTRAC information disclosed in contravention of this Part

Division 7--Use of AUSTRAC information in court or tribunal proceedings

134. Use of AUSTRAC information in court or tribunal proceedings

PART 12--OFFENCES

135. Simplified outline
136. False or misleading information
137. Producing false or misleading documents
138. False documents
139. Providing a designated service using a false customer name or customer anonymity
140. Receiving a designated service using a false customer name or customer anonymity
141. Customer commonly known by 2 or more different names--disclosure to reporting entity
142. Conducting transactions so as to avoid reporting requirements relating to threshold transactions
143. Conducting transfers to avoid reporting requirements relating to cross - border movements of monetary instruments

PART 13--AUDIT

Division 1--Introduction

144. Simplified outline

Division 2--Appointment of authorised officers and issue of identity cards

145. Appointment of authorised officers
146. Identity cards

Division 3--Powers of authorised officers

Subdivision A--Monitoring powers

147. Authorised officer may enter premises by consent or under a monitoring warrant
148. Monitoring powers of authorised officers
149. Tampering or interfering with things secured in the exercise of monitoring powers

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

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

Division 4--Obligations and incidental powers of authorised officers

151. Authorised officer must produce identity card on request
152. Consent
153. Announcement before entry
154. Details of monitoring warrant to be given to occupier etc. before entry
155. Use of electronic equipment in exercising monitoring powers
156. Compensation for damage to electronic equipment

Division 5--Occupier's rights and responsibilities

157. Occupier entitled to be present during execution of monitoring warrant
158. Occupier to provide authorised officer with facilities and assistance

Division 6--Monitoring warrants

159. Monitoring warrants
160. Magistrates--personal capacity

Division 7--External audits

161. External audits--risk management etc.
162. External audits--compliance
163. External auditor may have regard to the results of previous audit
164. External auditors

Division 8--Money laundering and terrorism financing risk assessments

165. Money laundering and terrorism financing risk assessments

PART 14--INFORMATION---GATHERING POWERS

166. Simplified outline
167. Authorised officer may obtain information and documents
168. Copying documents--reasonable compensation
169. Self - incrimination
170. Copies of documents
171. Authorised officer may retain documents
172. Division 400 and Chapter 5 of the Criminal Code

PART 15--ENFORCEMENT

Division 1--Introduction

173. Simplified outline

Division 2--Civil penalties

174. Ancillary contravention of civil penalty provision
175. Civil penalty orders
176. Who may apply for a civil penalty order
177. 2 or more proceedings may be heard together
178. Time limit for application for an order
179. Civil evidence and procedure rules for civil penalty orders
180. Civil proceedings after criminal proceedings
181. Criminal proceedings during civil proceedings
182. Criminal proceedings after civil proceedings
183. Evidence given in proceedings for penalty not admissible in criminal proceedings

Division 3--Infringement notices for certain contraventions

184. When an infringement notice can be given
185. Matters to be included in an infringement notice
186A. Amount of penalty--breaches of certain provisions of Part 3A, 4, 6 or 6A
186B. Amount of penalty--breaches of designated infringement notice provisions
187. Withdrawal of an infringement notice
188. What happens if the penalty is paid
189. Effect of this Division on criminal and civil proceedings

Division 4--Monitoring of compliance

190. Monitoring of compliance

Division 5--Remedial directions

191. Remedial directions

Division 6--Injunctions

192. Injunctions
193. Interim injunctions
194. Discharge etc. of injunctions
195. Certain limits on granting injunctions not to apply
196. Other powers of the Federal Court unaffected

Division 7--Enforceable undertakings

197. Acceptance of undertakings
198. Enforcement of undertakings

Division 8--Powers of questioning, search and arrest for cross-border movements of monetary instruments

199. Questioning and search powers in relation to monetary instruments
201. Arrest without warrant

Division 9--Notices to reporting entities

202. Notices to reporting entities
203. Contents of notices to reporting entities
204. Breaching a notice requirement
205. Self - incrimination
206. Division 400 and Chapter 5 of the Criminal Code
207. Disclosing existence or nature of notice

PART 16--ADMINISTRATION

Division 1--Introduction

208. Simplified outline

Division 2--Establishment and function of AUSTRAC

209. Establishment of AUSTRAC
210. Function of AUSTRAC

Division 3--Chief Executive Officer of AUSTRAC

Subdivision A--Office and functions of the AUSTRAC CEO

211. AUSTRAC CEO
212. Functions of the AUSTRAC CEO
213. Policy principles

Subdivision B--Appointment of the AUSTRAC CEO etc.

214. Appointment of the AUSTRAC CEO etc.
215. Remuneration and allowances of the AUSTRAC CEO
216. Leave of absence of the AUSTRAC CEO
217. Resignation of the AUSTRAC CEO
219. Termination of the AUSTRAC CEO's appointment
220. Other terms and conditions
221. Acting appointments
222. Delegation by the AUSTRAC CEO
223. Secretary may require the AUSTRAC CEO to give information

Division 4--Staff of AUSTRAC etc.

224. Staff of AUSTRAC
225. Consultants and persons seconded to AUSTRAC

Division 6--Directions by Minister

228. Directions by Minister

Division 6A--AUSTRAC CEO may use computers to take administrative action

228A. AUSTRAC CEO may use computers to take administrative action

Division 7--AML/CTF Rules

229. AML/CTF Rules

PART 17--VICARIOUS--LIABILITY

230. Simplified outline
231. Criminal liability of corporations
232. Civil liability of corporations
233. Liability of persons other than corporations

PART 17A--REVIEW--OF DECISIONS

233A. Simplified outline
233B. Reviewable decisions
233C. Giving notice of reviewable decisions
233D. Applications for reconsideration of decisions made by delegates of the AUSTRAC CEO
233E. Reconsideration of reviewable decisions
233F. Review by the Administrative Review Tribunal
233G. Failure to comply does not affect validity

PART 18--MISCELLANEOUS

234. Simplified outline
235. Protection from liability
236. Defence of taking reasonable precautions, and exercising due diligence, to avoid a contravention
237. Treatment of partnerships
238. Treatment of unincorporated associations
239. Treatment of trusts with multiple trustees
240. Concurrent operation of State and Territory laws
241. Act not to limit other powers
242. Law relating to legal professional privilege not affected
243. Validity of transactions
244. Reports to the AUSTRAC CEO etc.
245. Arrangements with Governors of States etc.
246. This Act does not limit other information - gathering powers
247. General exemptions
248. Exemptions and modifications by the AUSTRAC CEO
249. Specification by class
250. Schedule 1 (alternative constitutional basis)
251. Review of operation of Act
252. Regulations
SCHEDULE 1 Alternative constitutional basis

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