Any offence, committed in Australia or overseas, where the punishment under Australian law would be two or more years in prison.
Significant cash transaction report (SCTR)
A report about a transaction involving Australian or foreign physical currency with a value of A$10,000 or more submitted by an entity which has obligations under the FTR Act.
A Solicitor SCTR is a SCTR made by a solicitor.
FTR Act 1988 Part 2, division 1 and 1B
Structuring is where a person deliberately:
- splits cash transactions to avoid a single large transaction being reported in threshold transaction reports
- travels with cash amounts in a way that avoids declaring cross border movements of the cash.
Structuring can be a money laundering technique and is against the law under the AML/CTF Act.
AML/CTF Act 2006 sections 142 and 143
Suspect transaction report (SUSTR)
A report that motor vehicle dealers who act as insurers or insurance intermediaries must make if they have reasonable grounds to suspect that a transaction may be related to money laundering, terrorism financing, tax evasion, proceeds of crime or any other serious crimes under Australian law.
FTR Act 1988 section 16
Suspicious matter report (SMR)
A report a reporting entity must submit under AML/CTF Act if they have reasonable grounds to suspect that a transaction may be related to money laundering, terrorism financing, tax evasion, proceeds of crime or any other serious crimes under Australian law. An SMR must also be submitted if the reporting entity has reasonable grounds to suspect the customer or an agent of the customer is not who they say they are.
AML/CTF Act 2006 section 41 (1)
A bank that:
- has no physical presence in the country in which it is incorporated,
- is not affiliated with another banking corporation that does have a physical presence, and
- is authorised to carry on a banking business in its country of incorporation.
Physical presence means the corporation carries on a banking business at a physical place in that country and has at least one full-time employee who performs banking-related duties there. It involves meaningful decision-making and management.
See section 15 of the AML/CTF Act
Senior managing official
For the purposes of reliance, a senior managing official is an individual who makes, or participates in making decisions that affect the whole, or a substantial part, of the business of a reporting entity or who has the capacity to significantly affect the financial standing of a customer.
For the purposes of a correspondent banking relationship, a financial institution can determine who is a senior officer, depending on the size and complexity of the organisation. A senior officer does not have to be a person in executive management.
The senior officer should have sufficient knowledge of the business’s money laundering, terrorism financing and serious crime risk exposure, and have sufficient authority to make decisions affecting the business’s risk exposure.