New information gathering powers
The reformed anti-money laundering and counter-terrorism financing (AML/CTF) laws include new and updated information-gathering powers for AUSTRAC. The changes to these powers strengthen AUSTRAC’s ability to obtain information using notices prescribed by the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).
About the new powers
Section 49 – Power to request further information
AUSTRAC’s existing power under section 49 to request further information has been extended. Now, section 49 includes information captured under section 46, section 46A and also section 16(1) or (1A) of the repealed Financial Transaction Reports Act 1988.
Section 49B – Notice to obtain information or documents
Section 49B is a new power. This power allows the AUSTRAC CEO to issue a written notice compelling a person to give information or produce documents that may assist AUSTRAC with combating:
- money laundering
- terrorism or proliferation financing
- other serious crimes.
Section 49C – Authorisation to obtain information or documents
Section 49C is a new power. This power allows the AUSTRAC CEO to authorise people to voluntarily share information with AUSTRAC. Unlike the powers in section 49 and section 49B, section 49C does not compel the production of information or documents. Rather, it gives relief from the Privacy Act 1988 and other laws and any general law obligation of confidence, where people do want to share information.
Section 167 – Information related to compliance or enforcement
AUSTRAC’s existing power under section 167 has been amended to expand who may receive a notice, and narrow the purpose for which the notice may be issued.
A section 167 notice can now be issued to any person who has information or a document that is relevant to the compliance with, or enforcement of offences under:
- the AML/CTF Act or Regulations
- the Crimes Act or Criminal Code related to the AML/CTF Act.
Section 172A – Compulsory examinations
Section 172A is a new power. It gives the AUSTRAC CEO the power to compel people to attend examinations to give evidence or produce documents.
What to expect if you receive a notice from AUSTRAC
If you receive a notice from AUSTRAC, the notice and covering letter of the notice will explain:
- which section of the AML/CTF Act gives AUSTRAC the power to issue the notice
- why AUSTRAC has issued the notice
- what you need to do
- the potential consequences of failing to comply with the notice.
You will also receive contact details of staff within AUSTRAC to contact if information is unclear, or if you think you will have difficulty complying with the notice.
Other than section 49C notices, there can be serious consequences for failing to comply with a notice issued by AUSTRAC.
Related pages
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