Legislation (Deferral of Sunsetting—Financial Transaction Reports Regulations) Certificate 2018

Administered by Attorney-General's Department

Legislation au F2018L01215 Not in force Legislative Instrument

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Legislation (Deferral of Sunsetting—Financial Transaction Reports Regulations) Certificate 2018

EXPLANATORY STATEMENT

Issued by the Attorney‑General in compliance with section 15G of the Legislation Act 2003

 

INTRODUCTION

This certificate was made under paragraph 51(1)(c) of the Legislation Act 2003 and is a legislative instrument for the purposes of the Legislation Act.

A certificate issued by the Attorney-General under subsection 51(1) of the Legislation Act is not subject to disallowance (Legislation (Exemptions and Other Matters) Regulation 2015, section 10, item 19). As such, a statement of compatibility with human rights is not required (Human Rights (Parliamentary Scrutiny) Act 2011, section 9).

OUTLINE

The purpose of the sunsetting provisions of the Legislation Act is to ensure that legislative instruments are kept up to date and only remain in force for so long as they are needed.

Paragraph 51(1)(c) of the Legislation Act enables the Attorney-General to issue a certificate to defer the sunsetting day of an instrument for a period of either six or 12 months. The instrument will then be repealed on the day specified in the certificate instead of the scheduled sunsetting day.

This allows instruments to continue to be in force for a further but limited period of time when they would otherwise sunset. This removes the administrative burden of remaking instruments which would have a limited duration prior to their repeal and potential replacement, or where circumstances prevent the making of replacement instruments prior to the sunsetting day.

PROCESS BEFORE CERTIFICATE WAS MADE

Regulatory impact analysis

Certificates of deferral of sunsetting are machinery of government instruments, and are therefore not subject to the regulatory impact assessment requirements set out by the Office of Best Practice Regulation (OBPR). The OBPR reference for this standing exemption is ID19633.

Consultation before making

Before this certificate was issued, the Attorney‑General considered the general obligation to consult imposed by section 17 of the Legislation Act. Consultation involved the Minister for Law Enforcement and Cyber Security advising the Attorney‑General of the reasons in support of issuing the certificate. The Minister for Law Enforcement and Cyber Security is responsible for administering the Financial Transaction Reports Act 1988, the enabling legislation under which the Financial Transaction Reports Regulations 1990 were made. As such, the Minister for Law Enforcement and Cyber Security is the relevant rule-maker for the purposes of section 6 of the Legislation Act. The certificate is consistent with the policy intent of the sunsetting arrangements and does not significantly alter existing arrangements. Accordingly, further consultation was unnecessary.

Statutory preconditions relevant to this certificate

If the Attorney-General is satisfied that the statutory conditions in section 51 of the Legislation Act are met, an instrument’s sunsetting day can be deferred for either six or 12 months by means of a certificate made under that section. In terms of process, the Legislation Act requires:

a)      the responsible rule maker to apply to the Attorney-General in writing

b)      the Attorney-General to be satisfied that:

i)            the instrument would (apart from the operation of the sunsetting provisions) be likely to cease to be in force within 12 months after its sunsetting day, or

ii)            the proposed replacement instrument will not be able to be completed before the sunsetting day for reasons that the rule maker could not have foreseen and avoided, or

iii)            the dissolution or expiration of the House of Representatives or the prorogation of the Parliament renders it inappropriate to make a replacement instrument before a new government is formed, and

c)      the Attorney-General to issue a certificate that includes a statement of reasons for the issue of the certificate.

On the basis of the information contained in the statement of reasons included in the certificate, the Attorney‑General is satisfied that the criterion in subparagraph 51(1)(b)(i) of the Legislation Act is met.

The certificate issued by the Attorney‑General must be laid before each House of the Parliament no later than six sitting days after it is made. It is a legislative instrument and must be registered on the Federal Register of Legislation, but is not subject to disallowance (Legislation (Exemptions and Other Matters) Regulation 2015, section 10, item 19).

More information

Further details on the provisions of the certificate are provided in Attachment A.

The instrument which is the subject of this certificate, and which will now sunset at a later day as specified in this certificate, is available on the Federal Register of Legislationhttp://www.comlaw.gov.au.

Further information may be requested from the Attorney-General’s Department about the operation of this declaration, and from the Department of Home Affairs about the instrument to which this certificate applies.


ATTACHMENT A

NOTES ON THE CERTIFICATE           

Section 1 Name

This section provides that the certificate is named the Legislation (Deferral of Sunsetting—Financial Transaction Reports Regulations) Certificate 2018. The certificate may be cited by that name.

Section 2  Commencement

This section provides for the certificate to commence on the day after it is registered.

Section 3 Authority 

This section provides that the certificate is made under paragraph 51(1)(c) of the Legislation Act 2003.

Section 4 Definitions

This section defines, for the purposes of this certificate, ‘Act’ to mean the Financial Transaction Reports Act 1988, ‘AML/CTF Act’ to mean the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, ‘AML/CTF Rules’ to have the same meaning as in the AML/CTF Act, ‘Legislation Act’ to mean the Legislation Act 2003 and ‘Regulations’ to mean the Financial Transaction Reports Regulations 1990.

Section 5  Statement of reasons for issue of certificate

This section provides the statement of reasons as required by paragraph 51(2)(a) of the Legislation Act.

The statement of reasons explains why the Attorney-General is satisfied that the criterion set out in subparagraph 51(1)(b)(i) of the Legislation Act has been met, namely that the Regulations would (apart from the operation of the sunsetting provisions) be likely to cease to be in force within 12 months after its sunsetting day.

Section 6 Deferral of sunsetting of the Regulations

This section provides that the Regulations, for which the sunsetting day is 1 October 2018, are taken to cease to be in force under section 51 of the Legislation Act on 1 October 2019.

Section 7 Repeal of this instrument

This section provides that the certificate is repealed at the start of 2 October 2019.

Overview

The Legislation (Deferral of Sunsetting—Financial Transaction Reports Regulations) Certificate 2018, issued by the Attorney-General, defers the sunsetting of the Financial Transaction Reports Regulations 1990 by twelve months. The Legislation Act 2003, which introduced sunsetting provisions to ensure legislative instruments remain relevant, enables the deferral of sunsetting for up to twelve months through a certificate issued by the Attorney-General. The primary purpose of this certificate is to allow the Financial Transaction Reports Regulations 1990 to remain in force beyond their scheduled sunsetting date of 1 October 2018, thereby continuing their operation until 1 October 2019. This deferral alleviates the administrative burden associated with the imminent repeal and potential replacement of the regulations, which would have occurred before a replacement could be effectively implemented. The certificate was issued following the Minister for Law Enforcement and Cyber Security's application and consultation, confirming the necessity for the extension due to unforeseen circumstances or the inability to complete a replacement instrument within the stipulated timeframe.

Scope and Application

The Legislation (Deferral of Sunsetting—Financial Transaction Reports Regulations) Certificate 2018 applies to the Financial Transaction Reports Regulations 1990 (FTR Regulations), which were made under the Financial Transaction Reports Act 1988. The FTR Regulations pertain to financial institutions and specified non-financial businesses and professions that are required to report suspicious matters, and they play a crucial role in Australia's anti-money laundering and counter-terrorism financing regime. The deferral applies to all entities and persons required to comply with the FTR Regulations, which include banks, credit unions, insurers, real estate agents, dealers in precious commodities, and lawyers, among others. The deferral is a Commonwealth instrument, thus applying nationally within Australia. The deferral does not introduce any new exclusions or exemptions but extends the application of the existing FTR Regulations by one year. The deferral may be further extended or altered through subordinate instruments, but the explanatory statement does not provide details on such provisions. The certificate does not require consultation beyond the statutory preconditions and is not subject to disallowance, ensuring that the FTR Regulations remain in force to allow for the continuation of compliance and monitoring activities without disruption.

Key Provisions

The main operative sections of this legislation are sections 5 and 6 (paragraphs 4 and 5 of the explanatory statement). Section 5 provides the statement of reasons for the issue of the certificate, while section 6 defers the sunsetting of the Financial Transaction Reports Regulations 1990 until 1 October 2019. This means that the Regulations, which were initially set to sunset on 1 October 2018, will now remain in force until 1 October 2019. This temporary extension allows for continued compliance with financial transaction reporting requirements without the need for immediate replacement legislation. The obligations and requirements imposed by the Act primarily concern the process by which the Attorney-General defers the sunsetting of an instrument. The responsible rule maker, in this case the Minister for Law Enforcement and Cyber Security, must apply to the Attorney-General in writing. The Attorney-General must then be satisfied that certain statutory conditions are met, such as the likelihood that the instrument would cease to be in force within 12 months, or that unforeseen circumstances prevent the timely completion of a replacement instrument. Once these conditions are met, the Attorney-General issues a certificate that includes a statement of reasons for its issue. This certificate, upon being made, must be laid before each House of the Parliament within six sitting days and registered on the Federal Register of Legislation. The legislation does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches. However, it does state that certificates issued by the Attorney-General under subsection 51(1) of the Legislation Act are not subject to disallowance (Legislation (Exemptions and Other Matters) Regulation 2015, section 10, item 19). This implies that while the certificate itself is exempt from disallowance, the underlying regulations and requirements it defers would still be subject to existing legal frameworks and penalties if breached. The deferral itself does not introduce new sanctions but rather ensures continuity in the enforcement of existing regulations. In summary, this legislation allows the Attorney-General to extend the life of the Financial Transaction Reports Regulations 1990 by one year, alleviating the administrative burden of immediate replacement. The process involves a written application by the relevant Minister, assessment by the Attorney-General, and issuance of a certificate. This certificate, while exempt from disallowance, does not introduce new penalties but ensures that existing regulatory frameworks remain in effect during the extended period.

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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.