Northern Territory Explanatory Statements

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FINANCIAL TRANSACTION REPORTS AMENDMENT BILL 2010

LESIGLATIVE ASSEMBLY OF THE
NORTHERN TERRITORY

MINISTER FOR JUSTICE AND ATTORNEY-GENERAL

FINANCIAL TRANSACTION REPORTS
AMENDMENT BILL 2010

SERIAL NO. 101

EXPLANATORY STATEMENT


GENERAL OUTLINE

Financial institutions have been reporting suspicious transactions, threshold transactions and international funds transfers to the Australian Transaction Reports Analysis Centre (AUSTRAC) under the Financial Transaction Reports Act 1988 (Cth). That Act has been superseded by the
Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) and Financial institutions now report under the latter Act.

The Northern Territory Financial Transaction Reports Act allows Police to request further information from financial institutions regarding suspicious transactions reported under the Financial Transaction Reports Act 1988 (Cth) to AUSTRAC.

This Bill amends the Act to include the reports made under the 2006 Commonwealth Act.



NOTES ON CLAUSES

Clause 1. Short title

This is a formal clause which provides for the citation of the Bill. The Bill when passed may be cited as the Financial Transaction Reports Amendment Act 2010.

Clause 2. Commencement

The Act will commence on the day fixed by the Administrator by notice in the Gazette.

Clause 3. Act amended

The Act amends the Financial Transaction Reports Act 1992.

Clause 4. Amendment of long title

The long title is amended to include a reference to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth).

Clause 5. Amendment of section 3 (Interpretation)

This clause omits the definition of Commonwealth Act. The definition is no longer accurate as the NT Financial Transaction Reports Act (NT FTR Act) will be referable to two Commonwealth Acts.

Subclause (2) inserts the term AMLCTF Act which is an acronym for the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), and the term FTR Act which is an acronym for the Financial Transaction Reports Act 1988 (Cth)

Also inserted is a definition of designated authority which means the Commissioner of Police, or a police officer who is carrying out an investigation arising from, or relating to matters referred to in, information communicated to the AUSTRAC CEO.

Finally the reference to the “Commonwealth Act” in section 3(2) is omitted and substituted by the ‘FTR Act or AMLCTF Act’ Clause 6. Repeal and substitution of sections 5, 6 and 7

This clause repeals the sections dealing with the old FTR Act and substitutes them with new sections 5, 5A, 6, 6A and 7.

5 Further information about matters reported by cash dealers under the FTR Act

New section 5 provides for the production of further information requested by a designated authority from a cash dealer about a matter reported by the cash dealer to AUSTRAC under the FTR Act. This information must be relevant to the investigation or prosecution of a person for breaking a law of the territory, or assist in enforcing the Criminal Property Forfeiture Act.

The provision retains the penalty for a person for non-compliance of 85 penalty units or imprisonment for two years.

5A Further information or documents about matters reported by reporting entities under AMLCTF Act

New section 5A provides for the production of further information or documents requested by a designated authority from a reporting entity about a matter reported by the reporting entity to AUSTRAC under the AMLCTF Act. The information must be relevant to the investigation of, or the prosecution of a person for, an offence against a law of the Territory or may be of assistance in the enforcement of the Criminal Property Forfeiture Act. The provision is drafted to reflect section 49 of the AMLCTF Act.

This provision carries a maximum penalty for non-compliance by a person of 85 penalty units or imprisonment for two years.

A new section 6 provides for reports by cash dealers of suspect transactions not reported under the FTR Act or the AMLFCTF Act. This applies if the cash dealer has reasonable grounds to suspect information may be relevant to the investigation of, or the prosecution of a person for, an offence against a law of the territory or may be of assistance in the enforcement of the Criminal Property Forfeiture Act, but is not required to report the transaction under the FTR Act or, if the cash dealer is a reporting entity, under the AMLCTF Act. The cash dealer must as soon as possible after forming the suspicion about the transaction, report the transaction to the AUSTRAC CEO.

The section also provides for the form, content and method of communication of the report.

A new section 6A provides for a designated authority to request further information from reporting entities who have given information to AUSTRAC under section 6. The further information must be relevant to the investigation of or prosecution of a person for an offence against a law of the Territory or in the enforcement of the Criminal Property Forfeiture Act.

A penalty of 85 penalty units or two years imprisonment applies for non-compliance.

A new section 7 protects reporting entities and their employees or agents, from proceedings against them for doing something that was required of them or that they mistakenly thought was required of them by this Act. The section also protects them from Money Laundering proceedings when reporting matters under this Act, the FTR Act or the AMLCTF Act.

Entity is defined as a cash dealer or reporting entity.

6. Reports by cash dealers of suspect transactions not reported under FTR Act or AMLCTF Act

New section 6 sets out the circumstances in which a cash dealer must prepare a report of a transaction and communicate the information in the report to the AUSTRAC CEO. The maximum penalty for non-compliance for a person is 85 penalty units and/or imprisonment for two years.


6A. Further information about suspect transactions not reported under FTR Act or AMLCTF Act

New section 6A sets out the circumstances in which a designated authority might require further information from a cash dealer after the cash dealer has prepared a report under section 6(2) about a transaction.

The maximum penalty for non-compliance for a person is 85 penalty units and/or imprisonment for two years.

7. Protection of cash dealers, reporting entities etc

New section 7 adds reporting entities etc to the protections afforded by this section.

Subsection 2 deleted the reference to section 53 “possession property suspected of being proceeds of crime” in the repealed Crimes (Forfeiture of Proceeds) Act and replaces it with the money laundering sections, 231B and 231C, from the Criminal Code.

Subsection 3 which provided that a cash dealer did not have to give information to police if that information would tend to incriminate the dealer has been removed. The provision is unnecessary and undermines the Act and the NT is the only jurisdiction to have implemented the provision. The protections necessary already exist in subsections 1 and 2.


Clause 7 Repeal and substitute of section 10 This clause repeals section 10 which was a transitional provision which does not apply now that the relevant Commonwealth legislation has commenced operation.

Clause 7 also provides for new sections 10 and 11.

10 Law relating to professional privilege not affected

New section 10 declares the Act does not affect the law relating to legal professional privilege. The clause is modeled on section 242 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

11. Transitional matters for Financial Transactions Reports Amendment Act 2010

Section 11 is a new transitional section declaring that section 12 of the Interpretation Act applies to this Act.

 

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