Financial Transaction Reports Amendment Act 2006

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Legislation au C2006A00134 In force Act

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Financial Transaction Reports Amendment Act 2006

Act No. 134 of 2006 as amended

This compilation was prepared on 18 December 2006

[This Act was amended by Act No. 170 of 2006]

Amendment from Act No. 170 of 2006

[Schedule 1 (item 147) amended subsection 2(1) (item 2)]
[Schedule 1 (item 147) commenced immediately after 9 November 2006]

Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra

 

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Financial Transaction Reports Act 1988

 

An Act to amend the Financial Transaction Reports Act 1988, and for related purposes

[Assented to 9 November 2006]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Financial Transaction Reports Amendment Act 2006.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day on which this Act receives the Royal Assent.

9 November 2006

2.  Schedule 1

Immediately after the commencement of item 10 of Schedule 9 to the Anti‑Terrorism Act (No. 2) 2005.

However, if section 3 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 commences before 14 December 2006, the provision(s) do not commence at all.

Does not commence

Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

 (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


Schedule 1—Financial Transaction Reports Act 1988

 

1  Subsection 3(1) (definition of account)

Before “Part VIA”, insert “Division 3A of Part II or”.

2  Before section 17FA

Insert:

17FAA  Definition of account

  In this Division:

account includes:

 (a) a credit card account; and

 (b) a loan account (other than a credit card account); and

 (c) an account of money held in the form of units in:

 (i) a cash management trust; or

 (ii) a trust of a kind prescribed by the regulations.

To avoid doubt, it is immaterial whether:

 (d) an account has a nil balance; or

 (e) any transactions have been allowed in relation to an account.

3  Paragraph 17FA(1)(a)

Omit “a cash dealer”, substitute “an ADI”.

4  Paragraph 17FA(1)(b)

Repeal the paragraph, substitute:

 (b) the ADI is acting on behalf of, or at the request of, another person who is not an ADI;

4A  After subsection 17FA(1)

Insert:

 (1A) For the purposes of paragraph (1)(b), if:

 (a) an ADI (the first ADI) is acting on behalf of, or at the request of, another ADI (the second ADI); and

 (b) the second ADI is (whether or not as a result of one or more previous applications of this section) acting on behalf of, or at the request of, a person who is not an ADI;

then:

 (c) the first ADI is taken to be acting on behalf of that person; and

 (d) for the purposes of providing customer information in relation to that person, the first ADI is entitled to rely on the information provided by the second ADI.

5  Paragraph 17FA(2)(a)

Omit “a cash dealer”, substitute “an ADI”.

6  Paragraph 17FA(2)(a)

Omit “the cash dealer”, substitute “the ADI”.

7  Paragraph 17FA(2)(b)

Omit “a cash dealer” (wherever occurring), substitute “an ADI”.

8  Paragraph 17FA(2)(b)

Omit “the cash dealer”, substitute “the ADI”.

9  Subsection 17FA(3) (definition of customer information)

Repeal the definition, substitute:

customer information, in relation to an international funds transfer instruction transmitted out of Australia, means the following information about the ordering customer on whose behalf, or at whose request, an ADI sends the instruction:

 (a) the ordering customer’s name;

 (b) any one of the following:

 (i) the ordering customer’s full business or residential address (not being a post office box);

 (ii) if the ordering customer is an individual—the ordering customer’s date of birth and the country and the town, city or locality of the ordering customer’s birth;

 (iii) a unique identification number given to the ordering customer by the Commonwealth or an authority of the Commonwealth (for example, an Australian Business Number or an Australian Company Number);

 (iv) a unique identification number given to the ordering customer by a foreign government;

 (v) a unique identification number given to the ordering customer by the ADI that the ordering customer originally asked to send the instruction;

 (c) either:

 (i) if the money is, or is to be, transferred from a single account held by the ordering customer with the ADI that the ordering customer originally asked to send the instruction—the account number; or

 (ii) in any other case—a unique reference number assigned to the instruction by the ADI that the ordering customer originally asked to send the instruction.

10  Subsection 17FA(3)

Insert:

unique reference number, for an international funds transfer instruction, means a combination of any or all of the following:

 (a) letters;

 (b) digits;

 (c) characters;

 (d) symbols;

which distinguishes the instruction in a way that, either:

 (e) alone; or

 (f) in conjunction with any other information in the instruction;

enables the ADI that the ordering customer originally asked to send the instruction to identify the ordering customer.

Examples:

(a) a combination of a BSB and account number;

(b) a reference number generated by the ADI that the ordering customer originally asked to send the instruction.

11  Paragraph 17FB(1)(a)

Omit “a cash dealer”, substitute “an ADI”.

12  Subsection 17FB(2)

Omit “the cash dealer” (wherever occurring), substitute “the ADI”.

Note: The heading to subsection 17FB(2) is altered by omitting “cash dealer” and substituting “ADI”.

13  Subsection 17FB(4)

Omit “The cash dealer”, substitute “The ADI”.

14  Subsection 17FB(4)

Omit “the cash dealer’s”, substitute “the ADI’s”.

Note: The heading to subsection 17FB(4) is altered by omitting “cash dealer” and substituting “ADI”.

15  Subsection 17FB(5)

Omit “a cash dealer”, substitute “an ADI”.

16  Subsection 17FB(5)

Omit “the cash dealer”, substitute “the ADI”.

16A  Subsection 17FB(6) (subparagraph (b)(ii) of the definition of customer information)

Omit “date and place of birth”, substitute “date of birth and the country and the town, city or locality of the ordering customer’s birth”.

17  Subsection 17FB(6) (subparagraph (c)(ii) of the definition of customer information)

Repeal the subparagraph, substitute:

 (ii) a unique reference number assigned to the instruction by the ordering organisation.

18  Subsection 17FB(6)

Insert:

unique reference number, for an international funds transfer instruction, means a combination of any or all of the following:

 (a) letters;

 (b) digits;

 (c) characters;

 (d) symbols;

which distinguishes the instruction in a way that, either:

 (e) alone; or

 (f) in conjunction with any other information in the instruction;

enables the ordering organisation to identify the ordering customer.

Examples:

(a) a combination of a BSB and account number;

(b) a reference number generated by the ordering organisation.

19  At the end of Division 3A

Add:

17FC  Transmission into or out of Australia—intermediaries

  This Division does not require the provision of customer information in relation to an international funds transfer instruction if:

 (a) the instruction is transmitted by an ADI into or out of Australia; and

 (b) the transmission into or out of Australia occurs in the course of, and for the purpose of, the transmission of the instruction by or on behalf of another financial organisation from a place outside Australia to another place that is also outside Australia.

20  Paragraph 29(4)(ba)

Omit “a cash dealer”, substitute “an ADI”.

21  Section 42A

After “3A”, insert “, 3AA”.

 

Overview

The Financial Transaction Reports Amendment Act 2006 (C2006A00134) was enacted by the Parliament of Australia to amend the Financial Transaction Reports Act 1988 and address certain gaps and issues related to financial transaction reporting. The Act was assented to on 9 November 2006. It primarily aims to update and clarify definitions and obligations under the Financial Transaction Reports Act 1988, particularly in relation to the reporting of international funds transfer instructions by Australian ADIs (Authorised Deposit-taking Institutions). The amendments also seek to align the Act with other financial legislation, such as the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. The overarching policy objective of the Act is to enhance the effectiveness of financial transaction reporting and monitoring to combat money laundering and terrorist financing.

Scope and Application

The Financial Transaction Reports Amendment Act 2006 amends the Financial Transaction Reports Act 1988, introducing significant changes to the definition and application of certain financial reporting obligations. This Act applies to authorised deposit-taking institutions (ADIs), which encompass banks and other entities authorised to take deposits, as well as to financial transactions involving these institutions. The scope of the Act is national, applying throughout Australia. The legislative amendments extend to the definition of "account" to include credit card accounts, loan accounts (excluding credit card accounts), and accounts held in the form of units in cash management trusts or prescribed trusts. Furthermore, the Act redefines customer information concerning international funds transfer instructions and modifies the circumstances under which such information must be provided. Notably, the Act excludes certain transmissions of international funds transfer instructions by ADIs if they occur between financial organisations outside Australia. The Act also allows for the application of its provisions to be extended or restricted through subordinate instruments, such as regulations or subsidiary legislation, which may provide further clarification or detail regarding the implementation and enforcement of the amended provisions.

Key Provisions

The Financial Transaction Reports Amendment Act 2006 (C2006A00134) amends the Financial Transaction Reports Act 1988. The main sections ((1) to (3)) of this Act outline the specific changes and their effective dates, with most provisions commencing on 9 November 2006, the date of Royal Assent. However, the amendments detailed in Schedule 1 have a different commencement date, taking effect immediately after the commencement of item 10 of Schedule 9 to the Anti-Terrorism Act (No. 2) 2005. If section 3 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 commences before 14 December 2006, these particular provisions do not commence at all. The Act imposes several obligations and requirements on financial institutions and other specified entities. For example, the definition of 'account' in section 17FA is expanded to include credit card accounts, loan accounts (other than credit card accounts), and accounts of money held in units in a cash management trust or a trust of a kind prescribed by the regulations. The definition also clarifies that the inclusion of an account is immaterial regardless of its balance or transaction history. Furthermore, the term 'ADI' (Authorised Deposit-taking Institution) replaces 'cash dealer' in various sections, specifying that the obligations apply to ADIs acting on behalf of or at the request of another person, including another ADI. Section 17FB provides detailed requirements for customer information related to international funds transfer instructions. The information must include the customer's name, address, date of birth, unique identification numbers, and account or unique reference numbers. The term 'unique reference number' is defined to include combinations of letters, digits, characters, and symbols that distinguish the instruction and enable identification of the customer. The Act also specifies conditions under which customer information may not be required, such as when the transfer is made by an ADI for another financial organisation from outside Australia to another place outside Australia. The Act introduces specific offences and penalties for non-compliance with its provisions. While the specific penalties are not detailed in the provided text, breaches of the Financial Transaction Reports Act 1988 and its amendments typically result in substantial fines and, in severe cases, imprisonment. The penalties serve as a deterrent to non-compliance and ensure adherence to the stringent reporting and record-keeping requirements aimed at combating money laundering and terrorist financing.

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Area of Law
Anti-Money Laundering Law
Financial Regulation
Instrument
Act
Concepts
Commencement Provisions
Definitions & Interpretation
Reporting & Disclosure Obligations
Enforcement Powers
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.