The transaction reporting obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) come into effect on 12 December 2008.
What do 'reporting entities' need to report?
A 'reporting entity' is an individual, company or other entity that provides a 'designated service' as defined in the AML/CTF Act. Reporting entities include banks, non-bank financial services, remittance (money transfer) services, bullion dealers and gambling services.
Reporting entities will be required to report:
- international funds transfer instructions
- threshold transactions
- suspicious matters.
Please see AML/CTF compliance reports for information about that reporting obligation, which came into effect on 12 June 2007.
Threshold transaction reports (TTRs)
If a reporting entity provides a designated service to a customer which involves the transfer of physical currency or e-currency of AUD10,000 or more (or the foreign currency equivalent), the reporting entity must submit a TTR to AUSTRAC.
'Physical currency' is the coin or printed money of Australia or another country which is designated as legal tender. 'E-currency' is an electronic form of currency which is backed by precious metal or bullion.
A TTR must be submitted within 10 business days of the threshold transaction taking place. AUSTRAC has produced several TTR forms tailored for the following business types:
- financial and bullion services
- investment, superannuation and insurance
- money services businesses
- gambling services.
Suspicious matter reports (SMRs)
If a reporting entity forms a suspicion at any time while dealing with a customer (from the enquiry stage to the actual provision of a designated service, or later) on a matter that may be related to an offence, tax evasion, or proceeds of crime, they must submit an SMR to AUSTRAC. Offences include money laundering, terrorism financing, operating under a false identity or any other offence under a Commonwealth, State or Territory law.
An SMR must be submitted within three business days of forming the suspicion. If the suspicion relates to the financing of terrorism, the SMR must be submitted within 24 hours of forming the suspicion.
International funds transfer instruction (IFTI) reports
If a reporting entity sends or receives an instruction to or from a foreign country for a transfer of money or property - either electronically or under a remittance arrangement - they must submit an IFTI report to AUSTRAC.
AUSTRAC has produced two types of IFTI report forms. The form that reporting entities use will depend on whether or not they are part of the established banking system and send or receive instructions electronically, or they are remitting money or property under a 'designated remittance arrangement'.
An IFTI report must be submitted within 10 business days of sending or receiving the instruction.
Why do reporting entities need to report to AUSTRAC?
It is a requirement under Part 3 of the AML/CTF Act. Reports submitted to AUSTRAC play a major role in combating money laundering, terrorism financing and other major crime.
How are reports submitted to AUSTRAC?
Reports can be submitted electronically in three different ways through AUSTRAC Online. Paper reports will only be accepted from reporting entities who submit less than 50 reports (of any type) per year. For further information, contact the AUSTRAC Help Desk at help_desk@austrac.gov.au or phone 1300 021 037 (a local call within Australia).
Transition from FTR Act to AML/CTF Act reporting obligations
The Australian Government recently introduced a bill into Parliament to allow regulated entities who currently report to AUSTRAC under the Financial Transaction Reports Act 1988 (FTR Act) to continue to report in the same way during their transition to the new reporting format. This would apply to threshold transaction, international funds transfer instruction, or suspicious matter reports made after 12 December 2008, until such time as entities are compliant with the AML/CTF reporting requirements, but not later than 11 March 2010.
AUSTRAC has published its AML/CTF Act reporting implementation policy. The policy outlines the seven new reportable details forms and the four reporting methods AUSTRAC has designed to meet the size and technology requirements of reporting entities.
The policy also provides information for new reporting entities, as well as those reporting entities who have been reporting to AUSTRAC as cash dealers under the FTR Act.
The policy is subject to the legislation being passed.
Updated XML schemas and 'plain English' file format specifications available in AUSTRAC Online
AUSTRAC has recently revised the electronic file format specifications (XML schemas) for each report type and the external type library schema specification.
To assist reporting entities, AUSTRAC has developed 'plain English' file format specifications in addition to the XML schemas. These documents outline the revisions made to the XML schemas and external type library schema specification.
Version 1.1 XML schemas and 'plain English' file format specifications can be accessed via the 'resources' tab in your AUSTRAC Online account.
Please be aware that as at 12 December 2008, AUSTRAC will only accept XML files that have been validated against version 1.1 XML schemas.
For any technical enquiries regarding the file specifications or test file processes, please email filespecs@austrac.gov.au or phone 02 9950 0447.
Sample report forms and explanatory guides available in AUSTRAC Online
AUSTRAC has published sample report forms and educational materials for each report type, which can be accessed via the 'resources' tab if you have an AUSTRAC Online account. Please note: the sample forms cannot be used to report to AUSTRAC on 12 December 2008. Reporting entities who use this reporting method are required to order reportable details forms from AUSTRAC.
For further information, please contact the AUSTRAC Help Desk at help_desk@austrac.gov.au or phone 1300 021 037 (a local call within Australia).
Further information
AUSTRAC has produced various educational tools and publications to assist reporting entities with their reporting obligations. These include:
- AUSTRAC Regulatory Guide
- e-learning course 'Introduction to AML/CTF'
- Getting started with AUSTRAC Online brochure
- Public Legal Interpretation No. 6 of 2008 - Suspect transactions and suspicious matter reports
- Reporting requirements brochure.
The above can be accessed from the quicklinks on this page.
