Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2019 (No. 3)

Administered by Department of Home Affairs

Legislation au F2019L01611 Rules Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2019 (No. 3)

Issued by authority of Nicole Rose PSM, Chief Executive Officer, Australian Transaction Reports and Analysis Centre, in compliance with section 15J of the Legislation Act 2003

 

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 rules prescribing matters required or permitted by the AML/CTF Act to be prescribed by the rules.

Purpose and operation of the instrument

These Rules are a legislative instrument for the purposes of the Legislation Act 2003.

Details of the Rules are set out in the Attachment A.

A Statement of Compatibility with Human Rights (the Statement) has been completed in accordance with the Human Rights (Parliamentary Scrutiny) Act 2011. The overall assessment is that the Rules are compatible with human rights because to the extent that they may limit human rights, those limitations are reasonable, necessary and proportionate. A copy of the Statement is at Attachment B.

Background

Amendments to Chapter 11 (Compliance Report—reporting and lodgment periods)

Subsection 47(2) of the AML/CTF Act requires reporting entities to give the AUSTRAC CEO a report relating to their compliance with the Act and the Anti-Money Laundering and Counter-Terrorism Financing rules Instrument 2007 (No. 1) (AML/CTF Rules). Subsection 47(1) of the AML/CTF Act provides for the AML/CTF Rules to specify the relevant period that the report must cover, as well as the period in which the report may be lodged.

These reporting and lodgment periods are specified in Chapter 11 of the AML/CTF Rules.

These Rules make a number of minor and technical revisions to the current drafting of these provisions, including:

  • The reporting period in paragraph 11.2 is now specified to be “each successive period of 12 months beginning on 1 January and ending on 31 December”, and the lodgment period is specified in paragraph 11.3 to be “the period of 3 months beginning at the end of each successive reporting period”. This would mean that for the 2019 reporting period (being the period from 1 January to 31 December), a reporting entity would be required to submit their Compliance Report between 1 January 2020 and 31 March 2020.
  • The drafting of paragraph 11.4 has been simplified, including by removing references to the 2018 and 2019 calendar years, to ensure that annual amendments to the Chapter are no longer required. These amendments are not intended to change the substantive effect of the provisions, but are intended to simplify the drafting to aid readability and clarify reporting entities’ obligations.

Amendments to Chapter 51 (AML/CTF Rules relating to certain definitions under the AML/CTF Act - Ordering and Beneficiary Institutions, Financial Institutions and Non-Financiers)

Part 51.2 of the AML/CTF Rules contains obsolete references to two companies, one of which is no longer operating in Australia and has been deregistered by ASIC (KEB Australia Limited ABN 11 003 095 181), while the other entity (Travelex GBP Australia Pty Limited ABN 24 150 129 749) has changed its legal name (now Western Union Business Solutions (Australia) Pty Ltd). The Rules amend this Part to remove references to the de-registered company and correctly identify the other entity. 

Consultation

AUSTRAC published the amendments to Chapter 11 of the AML/CTF Rules on its website for public consultation from 15 October 2019 to 12 November 2019. AUSTRAC also consulted with the Australian Taxation Office, the Department of Home affairs, the Australian Federal Police, the Australian Criminal Intelligence Commission and the Office of the Australian Information Commissioner.

AUSTRAC did not undertake any consultation in relation to the amendments to Chapter 51, given that these changes are minor and machinery in nature and do not affect the rights or obligations of any party.

Regulation impact statement

The Office of Best Practice Regulation has confirmed that the Rules are unlikely to have more than a minor regulatory impact on business, community organisations or individuals. A Regulatory Impact Statement was not required to be prepared.

 


ATTACHMENT A

 

Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2019 (No. 3)

Section 1

This section provides that the name of the Instrument is the Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2019 (No. 3).

Section 2

This section sets out the date on which the Instrument will commence.

The Instrument commences on the day after it is registered on the Federal Register of Legislation.

Section 3

This section identifies the provision of the AML/CTF Act that authorises the making of the Instrument.

Section 4

This section provides that the instrument that is specified in Schedule 1 is 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

This item repeals and replaces existing Chapter 11 of the AML/CTF Rules.

Item 2

This item repeals and replaces existing Part 51.2 of the AML/CTF Rules.

 


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 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 Disallowable Legislative Instrument

The amendments to Chapter 11 of the AML/CTF Rules simplify the language around recurring reporting and lodgement periods, and specify the circumstances and periods in which registered remittance affiliates are exempted from the reporting obligations set out in section 47 of the AML/CTF Act.

The amendments to Chapter 51 of the AML/CTF Rules remove and replace obsolete references to two companies.

Human rights implications

AUSTRAC has assessed whether the Disallowable Legislative Instrument is likely to engage any of the applicable human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. As the amendments are minor and technical in nature, and do not alter any existing rights or obligations, AUSTRAC is satisfied that the none of the applicable rights or freedoms are engaged.

Conclusion

This Disallowable Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

Nicole Rose PSM

Chief Executive Officer

Australian Transaction Reports and Analysis Centre

Overview

The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2019 (No. 3) was enacted to make minor technical revisions to the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1). This legislative instrument was issued under the authority of the Chief Executive Officer of the Australian Transaction Reports and Analysis Centre (AUSTRAC) in compliance with section 15J of the Legislation Act 2003 and section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). The policy objective of the instrument is to streamline reporting and lodgment periods for compliance reports, as well as to update obsolete references to defunct or renamed companies in the AML/CTF Rules. AUSTRAC consulted with various government agencies and stakeholders regarding the amendments to Chapter 11 of the AML/CTF Rules, but did not consult for the changes to Chapter 51 due to their minor nature. The Office of Best Practice Regulation determined that the amendments are unlikely to have more than a minor regulatory impact. The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2019 (No. 3) introduces changes to the AML/CTF Rules, simplifying the language around recurring reporting and lodgment periods for compliance reports and removing or updating obsolete references to companies that are no longer operating in Australia or have changed their legal names. The amendments aim to aid readability and clarify reporting entities' obligations while ensuring the compatibility of the instrument with human rights. The Australian Transaction Reports and Analysis Centre is satisfied that the changes do not engage any applicable human rights or freedoms.

Scope and Application

The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2019 (No. 3) amends the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) under the authority of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). The instrument applies to reporting entities required to comply with the AML/CTF Act and the AML/CTF Rules, including financial institutions, certain businesses, and other entities specified in the Act. These amendments are primarily technical and are aimed at improving the clarity and efficiency of compliance reporting by entities within the scope of the Act. Geographically, the application of these rules is nationwide, as the AML/CTF Act operates across the Commonwealth of Australia. The amendments do not introduce new exclusions, exemptions, or thresholds but rather refine existing provisions to ensure compliance and reporting processes are straightforward and effective. The rules are also subject to further specification or restriction through subordinate instruments as deemed necessary by the AUSTRAC CEO, in line with the AML/CTF Act's provisions.

Key Provisions

The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2019 (No. 3) primarily focuses on making minor and technical revisions to the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) (AML/CTF Rules). Specifically, Section 1 identifies the Instrument, Section 2 sets the commencement date, and Section 3 identifies the authority under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) that enables the making of the Instrument. Schedule 1 details the specific amendments made to the AML/CTF Rules. The operative sections include the amendment of Chapter 11, which now specifies the reporting and lodgment periods for compliance reports more clearly and simplifies the language to aid readability (Item 1), and the amendment of Part 51.2 to remove obsolete references and update the legal names of entities (Item 2). The obligations and requirements imposed by these amendments on reporting entities primarily revolve around compliance reporting. Reporting entities must now submit their Compliance Reports within a three-month period starting at the end of each 12-month reporting period, which begins on 1 January and ends on 31 December. These changes aim to streamline the reporting process and ensure entities are aware of their obligations without needing annual updates to the rules. Additionally, the amendments rectify references to entities that have undergone name changes or ceased operations, ensuring that the AML/CTF Rules accurately reflect the current legal landscape. While the amendments themselves do not introduce new offences, penalties, or civil/criminal consequences, the underlying AML/CTF Act imposes significant penalties for non-compliance with anti-money laundering and counter-terrorism financing obligations. Under Section 238 of the AML/CTF Act, an individual or body corporate found guilty of an offence can face substantial penalties. For individuals, the penalty can be up to 5,000 penalty units or imprisonment for up to ten years, or both. For bodies corporate, the penalty can be up to 50,000 penalty units or imprisonment for up to fifty years, or both. These penalties underscore the importance of adhering to the compliance reporting requirements set out in the amended AML/CTF Rules.

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Area of Law
Anti-Money Laundering Law
Financial Regulation
Instrument
Regulation
Concepts
Reporting & Disclosure Obligations
Regulatory Standards
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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.