AUSTRAC Guideline No. 2(A)
(Formerly CTRA Guideline No. 2(A))
Financial Transaction Reports Act 1988
Significant Cash Transaction Reporting
TABs, On-Course Totalisators and Bookmakers
Preamble
The Financial Transaction Reports Act 1988 (FTR) is an initiative to assist in the detection of tax evasion and other criminal activity, including money laundering from drug trafficking and organised crime. To achieve these aims the FTR places certain obligations on cash dealers including the requirement to report significant cash transactions. This guideline is issued by the Australian Transaction Reports and Analysis Centre (AUSTRAC) to assist Bookmakers and staff working in TABs and On-Course Totes in reporting significant cash transactions.
A report of a significant cash transaction must be made on AUSTRAC Significant Cash Transaction Form 6 where the cash dealer is a party to a significant cash transaction.
What is a Significant Cash Transaction?
1. A significant cash transaction is a transaction involving currency (ie., coin and paper money of Australia or of a foreign country) of the equivalent of $10,000 or more that a cash dealer has with a customer in Australia.
A Significant Cash Transaction may also be a Suspect Transaction.
Where a cash dealer considers that a significant cash transaction is a Suspect Transaction, the transaction should also be reported on a Suspect Transaction Report Form 16.
Onus to report
2. Section 7 of the Financial Transaction Reports Act 1988 puts the onus to report upon the cash dealer ie. the bookmaker or other cash dealer involved.
Whilst the staff of those institutions comprise the actual links between the marketplace and what is ultimately reported, the responsibility to ensure there is prompt and accurate reporting rests with the cash dealer concerned.
The Financial Transaction Reports Act 1988 requires reporting of significant cash transactions before the end of the reporting period ie. the period ending at the end of 15 days after the day on which the transaction takes place.
It is an offence for a cash dealer to refuse or fail to report a significant cash transaction.
Guidelines for completing form
4. AUSTRAC Form 6 has a number of different sections. Cash dealers are advised to complete the form as follows:-
Part B. Method used to verify identity.
Where an identity document is produced, please specify the nature of the document and its number, if appropriate.
Part D. Bet details.
All individual bets or payouts involving $10,000 or more in cash should be provided in accordance with item 10.
Separate transactions of less than $10,000 in cash need not be recorded unless the cash dealer suspects that the customer is deliberately attempting to avoid the reporting requirements. In these circumstances a Suspect Transaction Report may be completed and sent to AUSTRAC.
Account Details.
Where a deposit or withdrawal of $10,000 or more in cash is made to/from a betting account, the blocks "cash deposit" and "cash withdrawal" should be completed.
Where to report?
5. Cash dealers must complete the Significant Cash Transaction Form 6 (supplies are available from AUSTRAC) and forward a copy of the report to:
The Director, AUSTRAC:
PO Box 5516
WEST CHATSWOOD NSW 1515Fax (02) 9950 0071
Provision of report data by electronic means is encouraged by AUSTRAC which will discuss the ways of doing so with any interested cash dealer.
Who will use the information reported?
6. Information reported by cash dealers may be utilised by the Australian Taxation Office, the Australian Customs Service, the National Crime Authority, the Australian Federal Police, State Police and certain other law enforcement agencies.
Further information or assistance
7. AUSTRAC staff will be glad to assist cash dealers and their employees with any queries they may have in respect of significant cash transaction reporting. The AUSTRAC Help Desk may be contacted on 9950 0827.
Australian Transaction Reports and Analysis Centre (AUSTRAC)
PO Box 5516
West Chatswood NSW 1515
Telephone (02) 9950 0827 Facsimile (02) 9950 0071 DX AUSTRAC 29668