From 12 December 2008, reporting entities regulated by the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) must report significant cash transactions, suspicious matters and international funds transfers to AUSTRAC. The Financial Transaction Reports Amendment (Transitional Arrangements) Act 2008 (the Amending Act), which commenced on 25 November 2008, provides cash dealers regulated by the FTRA with transitional arrangements for complying with the AML/CTF Act reporting requirements.

Transitional arrangements provided by the Amending Act

The Amending Act allows the cash dealers under the FTRA to continue to report under the FTRA until the earlier of 11 March 2010 or when they become compliant with the AML/CTF Act reporting requirements.

AUSTRAC's expectations of compliance

Although AUSTRAC expects all reporting entities to be compliant with the AML/CTF Act reporting obligations on 12 December 2008, it recognises that, due to a variety of reasons, some entities may not be fully compliant at that date. However, AUSTRAC expects an entity to take reasonable steps towards compliance and be fully compliant with the reporting obligations at the latest by 12 March 2010.

AUSTRAC also expects those reporting entities that commence to comply with the reporting obligations during the 15 month period to provide reports to the AUSTRAC CEO for all threshold transactions and international funds transfer transactions that occurred from 12 December 2008. However, cash dealers who are reporting to AUSTRAC under the FTRA during the transitional arrangements are not required to re-lodge reports under the AML/CTF Act when they become compliant with the AML/CTF reporting obligations (that is, they do not need to report retrospectively for the purposes of the AML/CTF Act). Please refer to AUSTRAC's policy document "AML/CTF Act reporting implementation policy" available from AUSTRAC's website: www.austrac.gov.au.

How do the transitional arrangements affect you?

If you are a current cash dealer under the FTRA, you have the following choices:

  • Comply with the AML/CTF reporting obligations as reporting entities under the AML/CTF Act commencing from 12 December 2008; or
  • Take advantage of the transitional arrangements as a cash dealer under the FTRA until you become compliant with the AML/CTF Act reporting requirements (by no later than 11 March 2010).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.