Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment (Chapter 78 Amendments) Instrument 2022

Administered by Department of Home Affairs

Legislation au F2022L00778 Rules Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by authority of the AUSTRAC CEO

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment (Chapter 78 Amendments) Instrument 2022

AUTHORITY

Section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) provides that the AUSTRAC CEO may, by legislative instrument, make Anti-Money Laundering and Counter-Terrorism Financing Rules (AML/CTF Rules). These Rules are set out in the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1).

Purpose and operation of the instrument

The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment (Chapter 78 Amendments) Instrument 2022 (the Amendment Instrument) is a legislative instrument for the purposes of the Legislation Act 2003.

Details of the Amendment Instrument are set out in Attachment A.

A Statement of Compatibility with Human Rights (the Statement) is at Attachment B. The Statement was completed in accordance with the Human Rights (Parliamentary Scrutiny) Act 2011. The overall assessment is that the Amendment Instrument promotes the realisation of human rights, and as such, is compatible with them.

Background

Amendment of Chapter 78

  1. The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2020 (No. 5) inserted Chapter 78 of the AML/CTF Rules and:

(a)   specified companies in the TransferWise Group (other than TransferWise Australia Pty Ltd (TransferWise) ABN 38 616 463 855) as ordering and beneficiary institutions for the purposes of the AML/CTF Act;

(b)   provided for conditions that exclude ordering and beneficiary institutions other than TransferWise from reporting international funds transfer instructions (IFTIs) if they deal with the specified entities.

2.                   Chapter 78 preserves the current requirement for TransferWise to report IFTIs without placing additional reporting obligations on other reporting entities.

3.                   Chapter 78 applied to one reporting entity, TransferWise.

4.                   TransferWise changed its name to Wise Australia Pty Ltd (Wise Australia) and that took effect on 13 February 2021.

5.                   The effect of this amendment changes TransferWise to Wise Australia.

Regulation impact statement

6.                   The Office of Best Practice and Regulation has advised that a Regulatory Impact Statement is not required as the amendments to the AML/CTF Rules are machinery changes.

Consultation

7.                   Public consultation on the amendments to Chapter 78 did not occur as they are machinery changes.

 

SUNSETTING

8.                   Under item 6 of Regulation 12 of the Legislation (Exemptions and Other Matters) Regulation 2015 these AML/CTF Rules if made, will not be subject to sunsetting.

9.                   The AML/CTF Rules are designed to be enduring because they:

(a)   complement and provide the detail for the broader obligations set out in the AML/CTF Act, aid in meeting Australia’s international obligations and matters of international concern, and support the combatting of money laundering and terrorism financing

(b)   assist industry in fulfilling their compliance with the AML/CTF Act and provide commercial and regulatory certainty for industry, and

(c)   are subject to an ongoing process of development, refinement and review, involving scrutiny and feedback from a wide range of stakeholders including industry, the Financial Action Task Force, Australian Government agencies, law enforcement agencies, and other interested parties.

 

 

 


ATTACHMENT A

 

Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment (Chapter 78 Amendments) Instrument 2022

Section 1—Name

This section provides that the name of the Instrument is the Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment (Chapter 78 Amendments) Instrument 2022.

Section 2—Commencement

This section provides for the commencement of each provision in the Instrument, as set out in the table in subsection 2(1).

The amendments in Schedule 1 commence on the day after registration.

Section 3—Authority

This section provides that the Instrument is made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

Section 4—Schedules

This section provides that the instrument specified in Schedule 1 are amended as set out in the applicable items in that Schedule.

Schedule 1—Amendments

Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1)

Notes on items

Item 1 -  Chapter 78

This item provides that wherever occurring, “TransferWise” is substituted with “Wise”.

Item 2 -  Chapter 78

This item provides that wherever occurring, “England”, is substituted with “United Kingdom”.

 

ATTACHMENT B

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Australian Human Rights Commission Regulations 2019

This Disallowable Legislative Instrument (the Instrument) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Instrument

The Instrument:

(a)                amends Chapter 78 of the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1). The amendment is a change in reporting entity name from  “TransferWise” to “Wise” and a change from “England” to “United Kingdom”

Human rights implications

The Human Rights (Parliamentary Scrutiny) Act 2011 requires that Statements of Compatibility must be made by the rule-maker with regard to disallowable legislative instruments, and must contain an assessment of whether the legislative instrument is compatible with the rights and freedoms recognised in the seven core international human rights treaties that Australia has ratified.

Because the proposed amendment to Chapter 78 are machinery changes the Instrument does not engage any of the applicable rights or freedoms, including the right to privacy and reputation contemplated by Article 17 of the International Covenant on Civil and Political Rights.

Conclusion

This Instrument is compatible with human rights

 

 

 

[signed]

Nicole Rose PSM

Chief Executive Officer

Australian Transaction Reports and Analysis Centre

Overview

The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment (Chapter 78 Amendments) Instrument 2022 (the Amendment Instrument) was made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). The purpose of the Amendment Instrument is to update references to "TransferWise" and "England" to "Wise" and "United Kingdom" respectively in Chapter 78 of the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1). The Amendment Instrument addresses the change in name of TransferWise to Wise Australia and corrects the geographical reference from "England" to "United Kingdom". These amendments are categorised as machinery changes, and thus, a Regulatory Impact Statement was not required. Additionally, public consultation did not occur due to the nature of these amendments. The Instrument is designed to maintain the integrity and effectiveness of Australia's anti-money laundering and counter-terrorism financing framework by ensuring that regulatory requirements accurately reflect the current entities involved. The Statement of Compatibility with Human Rights confirms that the Amendment Instrument is compatible with human rights, as it does not engage any of the applicable rights or freedoms, including privacy and reputation. The AML/CTF Rules, including these amendments, are intended to be enduring, providing ongoing compliance and regulatory certainty for industry and supporting Australia's international obligations.

Scope and Application

The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment (Chapter 78 Amendments) Instrument 2022 amends the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 to reflect changes in the names of reporting entities and their jurisdictions. Specifically, the Instrument updates references to "TransferWise" to "Wise" and "England" to "United Kingdom" within Chapter 78 of the AML/CTF Rules. This change applies to the AML/CTF Act’s reporting obligations for international funds transfer instructions, ensuring consistency and accuracy in the identification of entities subject to these obligations. The Amendment Instrument is a legislative instrument made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, and it does not require a Regulatory Impact Statement as it constitutes machinery changes. The amendments do not impose any additional obligations on entities other than those already specified and therefore do not extend or restrict the application of the AML/CTF Act beyond what is already established in the original rules.

Key Provisions

The main operative sections of the Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment (Chapter 78 Amendments) Instrument 2022 (the Amendment Instrument) pertain to the substitution of certain terms within the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1). Specifically, the Amendment Instrument amends Chapter 78 to change the name of the reporting entity from "TransferWise" to "Wise" (Section 1) and update the geographical reference from "England" to "United Kingdom" (Section 2). This change is intended to reflect the name change of the relevant entity and a more accurate geographical designation. The obligations imposed by this Amendment Instrument on the parties it governs are primarily those that follow from the updated terminology within the AML/CTF Rules. For example, the entity formerly known as TransferWise, now identified as Wise, remains subject to the same reporting requirements for international funds transfer instructions as previously stipulated. This change ensures that the rules continue to apply accurately to the correct entity without necessitating further amendments to the underlying obligations. Any breaches of the AML/CTF Act or the AML/CTF Rules, including those impacted by the Amendment Instrument, could result in significant penalties. For corporations, the maximum penalty for serious, persistent, or repeated contraventions of the Act can be up to $21 million or three times the benefit obtained from the contravention, whichever is the greater. For individuals, the penalties can be more severe, with fines reaching up to $275,000 and/or imprisonment for up to 10 years for serious or persistent contraventions. These penalties underscore the importance of compliance with the AML/CTF Act and the associated Rules, which are intended to safeguard against money laundering and terrorism financing.

Legal classification tags

Area of Law
Anti-Money Laundering and Counter-Terrorism Financing Law
Instrument
Instrument
Concepts
Definitions & Interpretation
Commencement Provisions
Regulatory Standards

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.