Disposal of Forfeited Articles Direction 2006

Overview

The Disposal of Forfeited Articles Direction 2006 amends the Disposal of Forfeited Articles Direction 1999 under the Crimes (Currency) Act 1981. The Act, enacted in 1981, addresses the problem of counterfeit money and securities by establishing various offences related to the manufacture, design, purchase, and sale of such counterfeit items. Under subsection 29(7) of the Act, forfeited articles are to be disposed of as directed by the Treasurer, with the current mechanism being the 1999 Direction which allows designated Reserve Bank of Australia officials to destroy, transfer, or retain these articles. The 2006 Direction updates this mechanism to reflect internal restructuring within the Reserve Bank and grants additional powers to relevant officials to allow the Royal Australian Mint to retain forfeited articles for purposes such as staff training and the establishment of a database. This amendment maintains the existing powers but updates the administrative arrangements within the Reserve Bank and Mint. The Direction was made without public consultation due to its limited public interest, and relevant officers from both the Reserve Bank and the Royal Australian Mint have reviewed and agreed with the terms of the instrument. It commences on the day after registration.

Scope and Application

The Disposal of Forfeited Articles Direction 2006, made under the Crimes (Currency) Act 1981, governs the disposal of articles that have been condemned as forfeited to the Commonwealth due to their connection with counterfeit currency or securities. The Direction applies to the Reserve Bank of Australia (RBA) and the Royal Australian Mint (RAM), as it delineates the authorised officials within these institutions who can take possession of forfeited articles and determine their subsequent actions. These actions include destruction of the article, transfer to the Australian Federal Police, or retention by the RBA or RAM for legitimate purposes such as staff training or the establishment of a database. The Direction is a refinement of the previous Disposal of Forfeited Articles Direction 1999, reflecting structural changes within the RBA and providing additional powers to the RAM. It is pertinent to note that the Direction does not extend beyond the Commonwealth jurisdiction and applies specifically to the handling of forfeited articles within the parameters set out by the Crimes (Currency) Act 1981. The Direction commenced on the day after its registration and was implemented without public consultation due to its limited public interest.

Key Provisions

The Disposal of Forfeited Articles Direction 2006 (F2007L00007) primarily amends the existing procedures for the handling of articles that have been condemned as forfeited to the Commonwealth under the Crimes (Currency) Act 1981 (section 29(7)). This Direction updates the authority figures and processes involved in the disposal of forfeited articles, such as counterfeit currency or securities. Under this Direction, the Governor of the Reserve Bank of Australia (RBA) and the Senior Manager, Currency Operations, RBA, retain the authority to destroy forfeited articles, transfer them to the Commissioner of the Australian Federal Police, or keep them in the RBA’s possession. The Direction also now includes the Royal Australian Mint (RAM) as an additional entity authorised to retain forfeited articles, provided it is for legitimate purposes such as staff training or establishing a database of examples of forfeited articles. This amendment reflects an internal restructuring within the RBA and does not alter the fundamental powers under the previous Direction. The Direction imposes several obligations on the parties involved. The Governor of the RBA and the Senior Manager, Currency Operations, RBA, must ensure that forfeited articles are either destroyed, handed over to the Australian Federal Police, or retained by the RBA. These officials are also required to facilitate the transfer of forfeited articles to the RAM for legitimate purposes. The RAM, in turn, must ensure that any forfeited articles it retains are used solely for the specified legitimate purposes, such as staff training or data collection. Additionally, both the RBA and the RAM must keep records of all transactions involving forfeited articles, including the transfer of these articles to other entities. Failure to comply with the provisions of this Direction may result in legal consequences. Although the Direction itself does not explicitly outline specific offences or penalties, any breach of the Crimes (Currency) Act 1981, which governs the handling of counterfeit currency and securities, may lead to criminal charges. Under the Act, offences related to counterfeit money and securities can attract significant penalties. For example, knowingly possessing counterfeit currency can lead to a penalty of up to 10 years imprisonment, a fine of up to $132,000, or both, depending on the severity of the offence. Similarly, manufacturing or dealing in counterfeit currency can result in penalties of up to 20 years imprisonment, a fine of up to $264,000, or both. These penalties underscore the importance of adhering to the Direction and the underlying Act.