Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2007 (No. 1)
as amended
made under section 299 of the
Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006
This compilation was prepared on 26 July 2007
[This Instrument was amended by Anti‑Money Laundering and
Counter‑Terrorism Financing Rules Amendment Instrument 2007 (No. 2)
(see F2007L02318)]
Amendment from Anti‑Money Laundering and Counter‑Terrorism
Financing Rules Amendment Instrument 2007 (No. 2)
[Schedule 1 (Item 1) added]
Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra
1 Name of Instrument
This Instrument is the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006.
2 Commencement
This Instrument commences on the day after it is registered.
3 Amendment
Schedule 1 amends the Anti‑Money Laundering and Counter‑Terrorism Financing Rules Instrument 2007 (No.1).
Schedule 1 Amendment
1 After Chapter 10
insert
Chapter 11
11.1 These Rules are made under section 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (the AML/CTF Act) for subsection 47(1) of the AML/CTF Act. They specify the reporting period and the lodgment period for a compliance report under subsection 47(1) of the AML/CTF Act.
11.2 For paragraph 47(1)(a) of the AML/CTF Act, a reporting period is the period beginning on 13 December 2006 and ending on 31 December 2007.
11.3 For paragraph 47(1)(b) of the AML/CTF Act, the lodgment period for a reporting period is the period of 3 months beginning at the end of the reporting period.
Chapter 12 Electronic funds transfer instructions
12.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made pursuant to section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for subparagraph 70(a)(i) of that Act.
12.2 For subparagraph 70(a)(i) of the AML/CTF Act, the following kind of transfer instruction is specified:
(1) a transfer instruction where money is to be paid by use of a credit card.
12.3 Paragraph 12.2 of these Rules does not apply to a transfer instruction involving e-currency where the transfer instruction falls within paragraph 70(c) of the AML/CTF Act.
Note reporting entities should note that the activities they carry out in order to comply with these Rules are also subject to the provisions of the Privacy Act 1988, even if the reporting entity is generally exempt from that Act.
Chapter 13 Approved third-party bill payment system
13.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made pursuant to section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for the definition of ‘approved third-party bill payment system’ in section 5 of that Act.
13.2 For the definition of ‘approved third-party bill payment system’ in section 5 of the AML/CTF Act, the following bill payment systems are prescribed:
(1) BPAY;
(2) DEFT; and
(3) The Australian Payments Clearing Association Limited’s direct entry system.
13.3 In these Rules:
(1) ‘BPAY’ means a national bill payment service provided by banks, building societies and credit unions registered with the BPAY scheme, that is accessed by a registered business’ customer via the telephone or internet and which enables the registered business to collect payments from their customers electronically.
(2) ‘DEFT’ means direct electronic funds transfer which is a payment, collection, receipting and reconciliation service that enables the payment of bills by customers registered with the DEFT scheme through the internet, BPAY, Australia Post offices, telephone or mail.
Note reporting entities should note that the activities they carry out in order to comply with these Rules are also subject to the provisions of the Privacy Act 1988, even if the reporting entity is generally exempt from that Act.
Overview
The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2007 (No. 1), made under section 299 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, was introduced to amend the existing Anti-Money Laundering and Counter-Terrorism Financing Rules. Enacted by the Australian Parliament, this legislative instrument aims to enhance the regulatory framework by providing more precise guidelines for reporting periods, lodgment periods for compliance reports, and the specification of certain types of transfer instructions. The primary objective is to bolster Australia’s efforts in combating money laundering and terrorist financing by ensuring that financial institutions adhere to stricter and more clearly defined reporting and compliance standards. The Instrument also acknowledges the interplay between these rules and the provisions of the Privacy Act 1988, reminding entities that their compliance activities must also respect privacy obligations.
Scope and Application
The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2007 (No. 1) applies to financial institutions and other designated entities as defined under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. These entities are required to comply with the specified reporting periods and lodgment periods for compliance reports, which are outlined in the rules. The rules also clarify the types of transfer instructions and bill payment systems that fall under the scope of the Act, including credit card transactions and certain electronic bill payment systems like BPAY, DEFT, and the Australian Payments Clearing Association Limited’s direct entry system. The instrument extends the jurisdictional reach of the Act across the Commonwealth of Australia, ensuring that entities within all states and territories must adhere to the regulations. However, it excludes certain e-currency transactions from the scope of the rules, provided they fall under another specified category of the Act. The rules further note that entities must also comply with the Privacy Act 1988 when carrying out activities to meet their obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act.
Key Provisions
The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2007 (No. 1) introduces several key provisions under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). These provisions primarily focus on specifying the reporting periods for compliance reports, identifying certain types of transfer instructions, and defining approved third-party bill payment systems. Specifically, section 11.2 states that the reporting period for compliance reports begins on 13 December 2006 and ends on 31 December 2007, as per subsection 47(1)(a) of the AML/CTF Act. Additionally, section 11.3 sets the lodgment period for these reports to three months starting from the end of the reporting period, in line with subsection 47(1)(b) of the AML/CTF Act.
Under the amended rules, certain obligations and requirements are placed on entities subject to the AML/CTF Act. For example, entities must ensure they comply with the specified reporting periods and lodgment periods for their compliance reports, as mandated by section 11.2 and section 11.3 respectively. Moreover, entities must adhere to the specified types of transfer instructions, particularly those involving credit card payments, as outlined in section 12.2 of the rules. Exceptions to these rules apply to e-currency transactions, which are covered under a separate provision, as noted in section 12.3.
There are significant consequences for non-compliance with the AML/CTF Act. While the specific offences, penalties, or civil/criminal consequences are not detailed in the excerpt provided, the overarching legislation under which these rules operate imposes strict penalties for breaches. The AML/CTF Act typically includes both civil and criminal penalties for non-compliance, with fines and imprisonment being potential outcomes for serious violations. These penalties underscore the importance of adhering to the rules and ensuring that entities meet their obligations under the Act to avoid legal repercussions.