Austrac has issued a note restating its views on obligations by providers of an item 54 designated service (Section 6 of the AML/CTF Act) following the expression of uncertainties.

Austrac rejects the view that Part B of an AML/CTF program only involves identifying and verifying the identity of a customer, without regard to the money laundering or terrorism financing (ML/TF) risk of the customer or the services provided.

The Financial Transaction Reports Amendment (Transitional Arrangements) Act 2008 has been assented to.  The Act completes the transition to the AML/CTF regime for reporting entities from 11 March 2010.

Updated consolidated Act: Financial Transaction Reports Act 1988

Austrac has released 2 sets of draft AML/CTF Rules relating to providers of traveller accommodation for public consultation:

Safe deposit boxes
These draft AML/CTF Rules exempt providers of traveller accommodation, who provide in-room safes and safe deposit facilities to registered guests,from all provisions of the AML/CTF Act. A public consultation period is open from 28 November 2008 to 12 December 2008.

Currency exchange transactions
These draft AML/CTF Rules exempt providers of traveller accommodation, who also provide low-value currency exchange services to registered guests,from all provisions of the AML/CTF Act. A public consultation period is open from 28 November 2008 to 12 December 2008.

Austrac has released a new Chapter 9 on reporting obligations for its Regulatory Guide.

All reporting entities under the AML/CTF Act will have the new reporting requirements from 12 December 2008. From this date, providers of financial, bullion, gambling or money transfer services will need to report suspicious matters, threshold transactions and international funds transfer instructions to AUSTRAC.

Austrac has released the following draft AML/CTF Rules for comment:

1. amending the definition of 'designated business group' to allow law and accounting practices
   subject to certain conditions, to form designated business groups.
2. relating to purchases and sales of bullion valued at less than $2,000 by exempting reporting entities from carrying out the applicable customer identification procedures for purchases or sales of bullion when the retail value of the transaction is less than $2,000 (Australian or foreign equivalent). .

New obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 take effect on 12 December 2008.

These obligations relate to reporting requirements and ongoing customer due diligence (OCDD) and will apply to providers of financial, bullion, gambling or money transfer services.

From 12 December 2008:

• reporting entities will need to report suspicious matters and, if applicable, threshold transactions and international funds transfer instructions to AUSTRAC
• reporting entities (unless they are exempt) will also need to conduct OCDD on all their customers. 

Austrac has released draft AML/CTF Rules for record-keeping obligations under s107 of the AML/CTF
Act for consultation until 14 November 2008.

Section 107 of the AML/CTF Act states that if reporting entities make a record of information relating to the provision of a designated service to a customer, that record of information must be retained for seven years after the making of the record. Section 107 also allows certain records to be declared exempt from this requirement by the AML/CTF Rules.

These draft AML/CTF Rules declare certain records generated by the reporting entity, including general correspondence and disclosure documents, as being exempt from the record-keeping requirement in section 107.

The end of the 15 month moratorium period for phase 1 of AML implementation ends on 12 March 2009.

The next set of AML obligations commences on 12 December 2008. Phase 2 requires affected organisations to meet reporting obligations, carry out customer due diligence and monitor transactions.

 Liz Atkins, Austrac's General Manager Regulatory Policy recently made the following observations about compliance to date:

• Austrac expects reporting entities to have appointed an AML/CTF Compliance Officer;
• in the area of employee due diligence, she reminded businesses that staff needed to be re-screened if they were moved to sensitive areas;
• program reviews needed to be done by someone not involved in the development of the program or operational staff.

According to Austrac's 2007-2008 Annual Report, it received 29,089 suspect transaction reports and 2,934,955 significant cash transactions reports in 2007-2008.

Austrac analyses the reports and passed on suspect transaction notifications to its domestic partner agencies including 27.730 to the ATO, 3072 to the Australian Federal Police and 1468 to the Australian Custome Service.

The Reserve Bank of Australia currently administers financial sanctions against senior members of the Burmese regime and their associates and supporters.

The Australian Government has reviewed the list of persons subject to financial sanctions and has directed the Reserve Bank to remove 18 persons and add 63 new persons to the Annex of names. Amendments have also been made to 142 entries on the previous list. Attachment A provides details of these amendments. The updated Annex now contains 463 names.

Any transactions involving the transfer of funds or payments to, by the order of, or on behalf of any person listed in the Annex are prohibited without prior approval from the Reserve Bank.