Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy (Consequential Amendments) Act 2011 - Proclamation

Overview

The Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy (Consequential Amendments) Act 2011 was enacted to address the need for mandatory enrolment of reporting entities with AUSTRAC to accurately calculate their liability for the supervisory cost recovery levy. This legislation received Royal Assent on 28 June 2011 and was enacted by the Australian Parliament. The Act amends the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, inserting sections 51A-51G to make enrolment with AUSTRAC mandatory for reporting entities. The policy objective is to ensure that the data used by AUSTRAC accurately reflects the number of reporting entities and their status, thereby facilitating the efficient and effective invoicing and collection of the levy. A proclamation was made to set the commencement date for Schedule 1 of the Act as 1 November 2011, ensuring that reporting entities are enrolled before the calculation of the 2011-12 levy. AUSTRAC is conducting an extensive communications campaign to inform reporting entities about the new obligations.

Scope and Application

The Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy (Consequential Amendments) Act 2011 applies to reporting entities as defined under section 5 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). These entities are required to enrol with the Australian Transaction Reports and Analysis Centre (AUSTRAC) to ensure the accuracy of data used for calculating liability to pay the levy and to facilitate efficient invoicing and collection processes. The Act received Royal Assent on 28 June 2011, and a Proclamation set the commencement date for the amendments in Schedule 1 as 1 November 2011. This ensures that reporting entities are enrolled prior to the calculation of the 2011-12 levy. The Act, which is part of Commonwealth legislation, extends its reach to all entities subject to the AML/CTF Act, thereby imposing mandatory enrolment requirements for compliance with the levy provisions. The Act does not specify exclusions or exemptions but relies on the existing definitions and obligations under the AML/CTF Act, with the scope of application potentially extended through subordinate instruments as necessary for operational purposes.

Key Provisions

The Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy (Consequential Amendments) Act 2011 (the Act) primarily operates through Schedule 1, which introduces several amendments to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). Specifically, sections 51A to 51G are inserted into the AML/CTF Act (subsection 2(1)). These sections establish a mandatory enrolment process for reporting entities with the Australian Transaction Reports and Analysis Centre (AUSTRAC), ensuring that the data AUSTRAC uses to calculate the supervisory cost recovery levy accurately reflects the number of reporting entities and their status as leviable entities. This enrolment process is crucial for the effective invoicing and collection of the levy. Under the new provisions, reporting entities, as defined by section 5 of the AML/CTF Act, are required to enrol with AUSTRAC. This enrolment ensures that AUSTRAC has up-to-date information on all entities subject to the supervisory cost recovery levy, thereby facilitating the accurate calculation and collection of the levy. Failure to enrol within the specified timeframe could lead to complications in levy calculations and invoicing, potentially resulting in administrative inefficiencies and non-compliance issues. The Act imposes several obligations on reporting entities. They must enrol with AUSTRAC and maintain accurate and up-to-date information as required by AUSTRAC. These obligations are designed to support the efficient administration of the levy and to ensure compliance with AML/CTF obligations. The Act’s provisions also place a responsibility on AUSTRAC to communicate the enrolment requirements effectively to reporting entities, ensuring that they are aware of their obligations under the amended AML/CTF Act. Breaches of the enrolment requirements under the amended AML/CTF Act could result in civil or criminal penalties, depending on the nature and severity of the breach. While the Act itself does not explicitly state the penalties, it is likely that non-compliance could be subject to existing penalties under the AML/CTF Act, which could include fines and, in severe cases, imprisonment. The precise penalties would depend on the specific breach and the context in which it occurs, but the enforcement mechanisms under the AML/CTF Act provide a robust framework for addressing non-compliance.