Operation
"Reporting entities" (a wide range of businesses and institutions - specified in the AML/CTF Act - which deal in cash, bullion and financial transactions) must report transactions to AUSTRAC; such entities include,
- Banks and similar financial institutions such as building societies.
- Corporations.
- Insurance companies and intermediaries.
- Securities dealers, such as stock brokers.
- Unit trust managers and trustees (but cash management trusts transacting only by cheque or similar are exempt).
- Travellers cheque or money order issuers.
- Cash carriers and payroll preparation businesses.
- Casinos.
- Bookmakers, including totaliser agencies.
- Bullion dealers.
- Solicitors, acting on their own behalf (e.g. their trust fund, or originated mortgages).
Transactions which must be reported are,
- Currency of $10,000 or more, or foreign currency of that value.
- International funds transfer instructions, either into or out of Australia, of any amount.
- Suspicious transactions of any kind; being transactions the dealer may reasonably suspect of being part of tax evasion or crime, or might assist in a prosecution.
Members of the public are also obliged to report to AUSTRAC if they carry $10,000 or more (or equivalent in a foreign currency) of cash into or out of Australia, which can be done on forms available from the Australian Customs Service at airports and sea ports. The Customs service attempts to detect evasion of this requirement. Airlines are not held liable for what their passengers carry.
Cross-border movement of bearer negotiable instruments of any amount must also be reported if requested by a Customs or police officer.
It's an offence under the Act for anyone to split a transaction into two or more parts with a dominant purpose of avoiding the reporting rules and thresholds.
Certain classes of transactions are exempt, or may be exempted on application. For example established customers transacting amounts typical of their lawful business for payroll, or retail or vending machine takings, etc. Motor vehicle traders are specifically not in the retailers exemption, their transactions are not eligible for exemption (likewise boat, farm machinery and aircraft traders).
Under the Freedom of Information Act 1982, any person can access records held by AUSTRAC, subject to certain exemptions.
Read more about this topic: Australian Transaction Reports And Analysis Centre
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