Commonwealth Consolidated Acts

ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ACT 2006 - SECT 165

Scope

  (1)   This section applies if the AUSTRAC CEO is satisfied that:

  (a)   a reporting entity has not carried out a money laundering and terrorism financing risk assessment; or

  (b)   a reporting entity has carried out a money laundering and terrorism financing risk assessment, but the assessment has ceased to be current; or

  (c)   a reporting entity has carried out a money laundering and terrorism financing risk assessment, but the assessment is inadequate.

Requirement

  (2)   The AUSTRAC CEO may, by written notice given to the reporting entity, require the reporting entity to:

  (a)   carry out a money laundering and terrorism financing risk assessment; and

  (b)   prepare a written report setting out the results of the assessment; and

  (c)   give the AUSTRAC CEO a copy of the report within:

  (i)   the period specified in the notice; or

  (ii)   if the AUSTRAC CEO allows a longer period--that longer period.

  (3)   A person commits an offence if:

  (a)   the person is subject to a requirement under subsection   (2); and

  (b)   the person engages in conduct; and

  (c)   the person's conduct breaches the requirement.

Penalty:   Imprisonment for 6 months or 30 penalty units, or both.

Civil penalty

  (4)   A reporting entity must comply with a requirement under subsection   (2).

  (5)   Subsection   (4) is a civil penalty provision.

Money laundering and terrorism financing program risk assessment

  (6)   For the purposes of this Act, a money laundering and terrorism financing risk assessment is an assessment by a reporting entity of:

  (a)   the risk the reporting entity may reasonably face that the provision by the reporting entity of designated services at or through a permanent establishment of the reporting entity in Australia might (whether inadvertently or otherwise) involve or facilitate:

  (i)   money laundering; or

  (ii)   financing of terrorism; and

  (b)   what the reporting entity will need to do, or continue to do, to:

  (i)   identify; and

  (ii)   mitigate; and

  (iii)   manage;

    the risk the reporting entity may reasonably face that the provision by the reporting entity of designated services at or through a permanent establishment of the reporting entity in Australia might (whether inadvertently or otherwise) involve or facilitate:

  (iv)   money laundering; or

  (v)   financing of terrorism.