Cash Transaction Reports Regulations (Amendment) 1992 No. 320
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 320
Issued by the authority of the Attorney-General
Cash Transaction Reports Act 1988
Cash Transaction Reports Regulations (Amendment)
On 21 May 1992 the Cash Transaction Reports Amendment Act 1991 (the Amendment Act) was proclaimed to commence on 6 December 1992.
The Amendment Act amends the Cash Transaction Reports Act 1988 (the Act) to make provision for the reporting by cash dealers to the Cash Transaction Reports Agency (to be renamed the Australian Transaction Reports and Analysis Centre (AUSTRAC) from 6 December 1992) of international funds transfers.
Section 43 of the Act provides that the Governor-General may make regulations for the purposes of the Act
The purpose of the Cash Transaction Reports Regulations (Amendment) is to make provision for the prescribed details for reports by cash dealers to AUSTRAC of international funds transfer instructions as required under subsection 17B(2) of the Act which was inserted by section 9 of the Amendment Act.
The amending Regulations also amend a number of provisions in the Regulations to make them consistent with the changes made by the Amendment Act to the name of the Act and to the name of the Agency.
Regulation 4 of the amending Regulations inserts in subregulation 2(1) a number of definitions of the terms used in Regulation 5.
Regulation 5 of the amending Regulations inserts a new regulation 11AA in the Principal Regulations.
Subregulation 11AA(1) prescribes the details which are to be included in a report to AUSTRAC of an international funds transfer instruction which is transmitted out of Australia by a cash dealer. These are divided into details which must be included in every report, those which must be included in a report of a financial organisation transfer instruction, those which must be included in a report of a customer transfer instruction and those details which must be included in a report if they appear in the international funds transfer instruction.
Subregulation 11AA(2) prescribes the details which are to be included in a report to AUSTRAC of an international funds transfer instruction which is transmitted into Australia, and received by a cash dealer. These are divided into those details which must be included in every report, those which must be included in a report of a financial organisation transfer instruction and those which must be included in a report if they appear in the international funds transfer instruction.
The Regulations will commence on 6 December 1992.
Overview
The Cash Transaction Reports Regulations (Amendment) 1992 No. 320, issued under the authority of the Attorney-General, amends the Cash Transaction Reports Regulations 1988 to align with the Cash Transaction Reports Amendment Act 1991, which commenced on 6 December 1992. This amendment addresses the gap in existing legislation by incorporating the reporting requirements for international funds transfers by cash dealers to the Australian Transaction Reports and Analysis Centre (AUSTRAC), formerly known as the Cash Transaction Reports Agency. The policy objective of these regulations is to ensure that AUSTRAC receives comprehensive details about international funds transfers, thereby enhancing the monitoring and regulation of financial transactions that cross international borders. The regulations prescribe specific details that must be included in reports of international funds transfer instructions transmitted out of and into Australia, thereby ensuring consistency with the legislative changes made by the Amendment Act.
Scope and Application
The Cash Transaction Reports Regulations (Amendment) 1992, promulgated under the authority of the Attorney-General, serve to amend the Cash Transaction Reports Regulations and introduce new requirements for reporting by cash dealers to the Australian Transaction Reports and Analysis Centre (AUSTRAC), formerly known as the Cash Transaction Reports Agency. The regulations apply to cash dealers, defined as entities that facilitate the exchange of cash for monetary instruments or vice versa, and are intended to ensure compliance with the Cash Transaction Reports Act 1988. The Act applies to transactions that involve cash dealers and specifically mandates the reporting of international funds transfer instructions, both those transmitted out of Australia and those received into Australia. The amendments ensure that the regulations are consistent with the changes introduced by the Cash Transaction Reports Amendment Act 1991, which commenced on 6 December 1992. The regulations specify the details that must be included in reports submitted to AUSTRAC, tailored to the nature of the funds transfer instructions, whether they are from financial organisations or individual customers. The scope of these regulations is national, applying across Australia, and they extend to transactions conducted by cash dealers, thereby encompassing a broad range of industries and entities involved in financial transactions.
Key Provisions
The Cash Transaction Reports Regulations (Amendment) 1992 No. 320 primarily introduce provisions for cash dealers to report international funds transfer instructions to the Australian Transaction Reports and Analysis Centre (AUSTRAC) as required by the Cash Transaction Reports Act 1988 (the Act). Section 43 of the Act allows the Governor-General to make regulations for the purposes of the Act, and these amending Regulations were made in response to the Cash Transaction Reports Amendment Act 1991. Regulation 4 defines key terms used in the Regulations, and Regulation 5 introduces new Regulation 11AA, which details the specific information cash dealers must include in their reports to AUSTRAC about international funds transfer instructions. These details are divided into those that must be included in every report, those specific to financial organisation transfer instructions, those specific to customer transfer instructions, and those that must be included if they appear in the international funds transfer instruction.
The obligations imposed by these Regulations on cash dealers include the requirement to submit detailed reports to AUSTRAC about international funds transfers, whether these are being sent out of or received into Australia. The details required vary depending on the nature of the transfer. For example, every report must include certain standard information, while additional details are required for financial organisation or customer transfer instructions. These reports must be made in accordance with the specifications outlined in Regulation 11AA. The Regulations also mandate that cash dealers ensure the accuracy and completeness of the information provided in their reports, thereby facilitating AUSTRAC’s role in monitoring and analysing financial transactions for compliance with relevant laws.
Failure to comply with the requirements set out in the Cash Transaction Reports Regulations (Amendment) can result in civil and criminal consequences. While the specific offences and penalties are not detailed in the explanatory statement, breaches of the Act and its associated regulations can lead to substantial penalties. Under the Cash Transaction Reports Act, penalties can include fines and, in severe cases, imprisonment. The precise penalties depend on the nature and severity of the breach, but the Act provides for stringent enforcement mechanisms to ensure compliance. The maximum penalties can vary widely based on the specific violation, reflecting the importance of adhering to these regulatory requirements.