Disposal of Forfeited Articles Direction 2014

Overview

The Disposal of Forfeited Articles Direction 2014 amends the 2012 Direction under the Crimes (Currency) Act 1981, which was enacted to address the manufacture, design, purchase, and sale of counterfeit money and securities. The Direction provides a framework for the disposal of forfeited articles by authorising specific officials to take possession, destroy, or transfer forfeited items, including counterfeit money or securities, to other relevant authorities. The amendment follows a restructuring within the Reserve Bank of Australia (RBA) and updates the delegation of powers to align with the new organisational structure. Importantly, the Direction does not introduce any significant changes to the existing powers and maintains the limited scope of its application, as indicated by the absence of public consultation due to its minimal public interest. This Direction, which is compatible with human rights as it does not engage any applicable rights or freedoms, comes into effect on the day after it is registered.

Scope and Application

The Disposal of Forfeited Articles Direction 2014 operates under the framework of the Crimes (Currency) Act 1981, which pertains to offences involving counterfeit money and securities, including their manufacture, design, and sale. This direction specifically outlines the procedures for the disposal of articles that have been condemned as forfeited to the Commonwealth, which includes the authority to destroy such items or transfer them to designated officials such as those from the Australian Federal Police or the Royal Australian Mint, or to retain them within the Reserve Bank of Australia. The Direction applies to designated officials within the Reserve Bank of Australia, including the Governor, the Head of Note Issue, the Senior Manager, Communication, Note Issue Department, the Head Scientist, Note Issue Department, and the Manager, Counterfeits and Research, Note Issue Department. The Direction has a national reach as it operates under the Commonwealth jurisdiction. There are no exclusions, exemptions, or thresholds specified within the Direction, though its application can be extended or restricted through subordinate instruments. The Direction was amended to reflect internal structural changes within the Reserve Bank, without altering the substantive powers. Notably, the Direction does not engage with any human rights issues and is deemed compatible with human rights as declared in international instruments.

Key Provisions

The Disposal of Forfeited Articles Direction 2014 (Direction) is a legislative instrument that operates under subsection 29(7) of the Crimes (Currency) Act 1981. This subsection empowers the disposal of articles condemned as forfeited to the Commonwealth, such as counterfeit currency, in accordance with a direction of the Treasurer. The Direction specifies who within the Reserve Bank of Australia (RBA) can take possession of these forfeited articles and what can be done with them. Specifically, the Direction allows certain RBA officials to either destroy the forfeited articles, give them to the Commissioner of the Australian Federal Police, transfer them to the Chief Executive Officer of the Royal Australian Mint, or retain them within the RBA (subsection 3). These officials include the Governor of the RBA, the Head of Note Issue, the Senior Manager, Communication, Note Issue Department, the Head Scientist, Note Issue Department, and the Manager, Counterfeits and Research, Note Issue Department (subsection 4). Under the Direction, the specified RBA officials are granted the authority to manage forfeited articles in a manner that aids law enforcement and research efforts. This includes the ability to destroy counterfeit currency, which prevents its re-entry into circulation, and to transfer these articles to agencies that can utilise them for investigative or educational purposes. This delegation of authority ensures that the process of handling and disposing of forfeited articles is streamlined and efficient, while also ensuring that these sensitive items are handled by individuals with the necessary expertise and security clearances. The Direction also outlines the potential actions that can be taken with forfeited articles, which include destruction, transfer to law enforcement, transfer to the Royal Australian Mint, or retention within the RBA. This flexibility allows for the appropriate handling of each case based on the specific circumstances and needs of the relevant agencies. For example, particularly valuable or significant counterfeit items may be retained by the RBA for research or educational purposes, while less significant items may be destroyed or handed over to law enforcement for further investigation. The Direction imposes specific obligations on the RBA officials who are granted authority over forfeited articles. These officials must ensure that the articles are handled in accordance with the provisions of the Direction and the Crimes (Currency) Act 1981. This includes taking all necessary measures to prevent the re-entry of counterfeit currency into circulation, as well as ensuring that the articles are transferred to the appropriate agencies when required. Additionally, these officials must maintain accurate records of all actions taken with forfeited articles, in order to provide accountability and transparency in the process. There are no explicit offences, penalties, or civil/criminal consequences outlined in the Direction itself. However, any breach of the provisions of the Crimes (Currency) Act 1981, which the Direction operates under, could result in criminal charges. Under section 29 of the Crimes (Currency) Act 1981, any person who contravenes the Act, including the disposal of forfeited articles in a manner not authorised by the Act or the Direction, can be guilty of an offence. The maximum penalties for offences under the Crimes (Currency) Act 1981 vary depending on the specific offence but can include substantial fines and/or imprisonment. For example, the offence of possessing counterfeit currency with the intent to defraud carries a maximum penalty of 10 years imprisonment (section 128). Therefore, while the Direction does not impose penalties itself, it operates within a legislative framework that includes significant criminal consequences for non-compliance.