Acts of Parliament assented to - Act No. 130 to 133 of 2017

Overview

The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2017 was assented to by the Governor-General on 13 December 2017. This Act was introduced to address the issue of combating money laundering and terrorism financing. The enactment was carried out by the Parliament of Australia, and the policy objective was to enhance the existing legislative framework to more effectively prevent and counter these illicit activities. This amendment was a response to identified gaps in the current legal system that needed to be addressed to align Australia's laws with international standards and improve the effectiveness of its financial regulation and oversight mechanisms. The First Home Super Saver Tax Act 2017 was also assented to on the same day, aiming to introduce a tax on certain withdrawals from superannuation accounts to encourage savings for first home purchases. This Act was designed to alleviate housing affordability issues by incentivising first-time homebuyers to save for their deposit, thus indirectly supporting the housing market and providing a more sustainable financial base for prospective homeowners.

Scope and Application

The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2017 is designed to enhance the regulatory framework governing the prevention of money laundering and counter-terrorism financing within Australia. This Act applies to both individuals and entities, including financial institutions, real estate agents, and professional services firms, that fall under its jurisdiction. It extends its reach nationally, applying across the Commonwealth, states, and territories, ensuring a uniform approach to combating these illicit activities. The Act is not limited to specific transactions or industries but rather encompasses a broad range of activities and entities that have the potential to be exploited for money laundering or terrorism financing purposes. The Act allows for the creation of subordinate instruments that may further extend or clarify its application, providing flexibility to address emerging threats and new methods of illicit financing. However, the Act does not specify particular exclusions or exemptions beyond those detailed within its provisions and the subordinate instruments it may generate.

Key Provisions

The Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2017, as assented to by the Governor-General on 13 December 2017, amends existing legislation to strengthen measures against money laundering and terrorism financing. Key provisions of this Act include updates to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, which now mandate more rigorous reporting standards for financial institutions (Section 10) and enhanced due diligence on politically exposed persons (Section 231). These sections require financial institutions to report suspicious matters more promptly and to conduct thorough checks on individuals who may be involved in corrupt activities. The obligations under this Act are extensive and place a significant burden on financial institutions and reporting entities. These entities are required to implement robust compliance programs that include employee training on identifying suspicious transactions, establishing internal controls to manage risks, and maintaining records of transactions and customer information (Section 231). The Act also imposes obligations on designated service providers, such as lawyers and accountants, to report suspicious matters to the Australian Transaction Reports and Analysis Centre (AUSTRAC) (Section 233). Failure to comply with the requirements of this Act can result in severe consequences. Financial institutions that fail to report suspicious matters in accordance with the Act can face civil penalties of up to $525,000 or, in the case of a corporation, up to 5,250 penalty units (Section 231). Additionally, designated service providers who fail to report suspicious matters can also face civil penalties, as well as potential criminal charges which carry a maximum penalty of 10,500 penalty units or imprisonment for up to five years, or both (Section 233). These penalties underscore the importance of compliance with the Act’s provisions to prevent the misuse of the financial system for illicit activities.