On 19 September 2008, AUSTRAC released a reporting implementation policy to assist reporting entities with new reporting obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). Reporting entities will need to report suspicious matters and, if applicable, threshold transactions and international funds transfer instructions to AUSTRAC, commencing from 12 December 2008.

The document is available on AUSTRAC's website at http://www.austrac.gov.au/amlctfact_reporting_implementation.html. It sets out AUSTRAC's approved methods of reporting and its policy on the processes that a reporting entity should undertake for each approved method of reporting in order to implement the relevant reporting obligations.

Objectives

The objectives of the policy are:

  • To ensure a smooth transition for reporting entities that have been reporting to AUSTRAC as cash dealers under the Financial Transaction Reports Act 1988 (FTR) to reporting under the AML/CTF Act
  • To provide new reporting entities with information regarding various approved methods of reporting under the AML/CTF Act
  • To outline AUSTRAC's expectations regarding compliance with the AML/CTF Act reporting obligations from 12 December 2008.

Reportable details forms

The policy outlines seven reportable details forms for reporting entities:

  • Suspicious Matter Report
  • Threshold Transaction Report – financial and bullion services
  • Threshold Transaction Report – investment, superannuation and insurance
  • Threshold Transaction Report – money services businesses
  • Threshold Transaction Report – gambling services
  • International Electronic Funds Transfer Instruction Report
  • International Funds Transfer Instruction Report – under a designated remittance arrangement.

Where relevant, reporting entities must submit the forms appropriate to the types of designated service(s) they provide.

Approved methods of reporting

AUSTRAC has designed a range of reporting methods to meet the size and technology requirements of reporting entities. Under the AML/CTF Act, AUSTRAC will permit four methods of reporting:

  • File submission/transmission using AUSTRAC's electronic report file format specifications – AUSTRAC requires the use of XML format files available on AUSTRAC Online (online.austrac.gov.au – should we put the full link instead so people can click through - https://online.austrac.gov.au/ao/login.seam) and all reporting entities to undergo a 'test' process prior to submitting reports. AUSTRAC Online is AUSTRAC's secure internet-based system which aims to simplify the AML/CTF Act implementation process for reporting entities
  • Single report data entry through AUSTRAC Online – allows submission of individual reports
  • Multiple report data entry spreadsheet through AUSTRAC Online - allows submission of multiple reports and available for reports of international funds transfer instructions and threshold transactions but not for the submission of suspicious matter reporting
  • Paper – AUSTRAC will issue paper forms to reporting entities that do not have the technical means to submit reports electronically. Paper forms are to be ordered through AUSTRAC's Help Desk. Paper records can only be submitted using AUSTRAC's approved forms ordered through AUSTRAC's Help Desk.

Electronic reporting

AUSTRAC requires all reporting entities to submit reports electronically where they have the technical means to do so and their reporting volumes exceed 50 forms per year (all types aggregated).

Reporting entities with reporting volumes of less than 50 forms per year (all types aggregated) are encouraged to report electronically but are not obliged to do so.

From 12 December 2008, all regulated entities (reporting entities and cash dealers under the FTR) submitting reports electronically under both AML/CTF Act and the FTR Act will be required to do so via AUSTRAC Online.

AUSTRAC's expectations of compliance

Although AUSTRAC expects all reporting entities to be compliant with the 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 will 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.

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.