An IFTI-DRA is an instruction to transfer money or property to or from another country under a designated remittance arrangement (DRA) where either:
- the entity accepting the instruction from the customer or
- the entity making the money or property available
is not a financial institution.
Information required in IFTI-DRA reports
Reports about IFTI-DRAs must include details about everyone involved in the transfer:
- the transferor – the business, organisation or individual who instructs the transfer of the money or property
- the sender – the business, organisation or individual that accepts instructions from the transferor to transmit the money or property
- the transmitter (if the transmitter is not the sender) – the business, organisation or individual that transmits the instructions
- the disbursing entity – the business, organisation or individual that arranges for the money or property to be made available to the transferee
- the transferee – the business, organisation or individual that ultimately receives the money or property.
You may also have to report details such as:
- transfer dates
- the amount and type of currency
- reference and identification numbers
- for property transfers, a description and value of the property and details of the currency used in the valuation
- any information given in the instruction about the reason for transferring the money or property
- how you identified and verified an individual’s identity. For more information see chapter 17 of the AML/CTF Rules.
Examples of IFTI-DRAs that need to be reported
Example 1
Ms Amuza wants to send A$5000 to her brother (Mr Bajaj) who lives in Vietnam. Ms Amuza contacts Remittance Company Hafei Ltd, a registered money transfer provider, and instructs them to send A$5000 to Mr Bajaj in Vietnam.
Remittance Company Hafei sends a text message to its agent in Vietnam, who arranges to have A$5000 delivered to Mr Bajaj the next business day.
Remittance Company Hafei and the agent in Vietnam arrange to reconcile the funds between themselves later.
Remittance Company Hafei must submit an IFTI-DRA report to AUSTRAC giving details of the international funds transfer instruction within 10 business days of receiving the instruction.
Example 2
Mr Praga wants to send A$2000 to his family in India. He presents Remittance Company Hafei with a cheque for A$2000 and instructs them to send A$2000 to Ms Dacia.
Remittance Company Hafei contacts its agent in India via email. It deposits the funds into its bank account with Bank Vector in Australia, then transfers A$2000 from that account to the agent’s bank account in India. The agent arranges to deliver the A$2000 to Ms Dacia in India.
Remittance Company Hafei must submit an IFTI-DRA report to AUSTRAC giving details of the international funds transfer instruction within 10 business days of receiving the instruction from Mr Praga.
Affiliates of a remittance network providers: Who submits the IFTI-DRA report
The remittance network provider is responsible for lodging an IFTI report with AUSTRAC if its affiliate made the IFTI-DRA using the provider’s network.