Chapter 6 - Financial transaction reports Act 1988 (Cwlth). In this chapter you should understand: the objectives of the FTR Act and the AML/CTF Act, to whom the Acts apply, the types of transactions that must be reported, the requirements that must be met for customer identification, the penalties imposed by the Acts, the impact of the Acts on businesses and trade, the role of AUSTRAC in relation to the Acts.
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Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Copyright © 2000 McGraw-Hill Australia Financial Transaction Reports Act 1988 (Cwlth) Chapter Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning Financial Transactions Reports Act 1988 (Cwlth) • Objective - To assist in the detection of tax evasion and other criminal activity, such as corporate crime and the “laundering” of money obtained from drug trafficking and organised crime Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning 6-3Australia Copyright © 2000 McGraw-Hill Australian Transaction Reports and Analysis (AUSTRAC) • Body responsible for administering Act: - collects - compiles - analyses, and - distributes information Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning 6-4Australia Copyright © 2000 McGraw-Hill Distribution of information Information available to: • Australian Tax Office • Federal police • Customs services • National Crimes Authority • State law enforcement agencies Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning 6-5Australia Copyright © 2000 McGraw-Hill Obligations and reporting requirements On cash dealers [S3(1)]: • banks building societies • insurance companies finance companies • securities dealers futures dealers • casinos bookmakers • Totalisator Agency Board (TAB) and solicitors To report: • cash transaction (i.e the physical transfer of currency from one person to another of not less than $10 000 within Australia) • suspect transactions Within: • 15 days of transaction involving Australian currency (1 or days if suspect) • end of day after transaction involving foreign currency • or days of suspect transaction Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning 6-6Australia Copyright â 2000 McGraw-Hill Reporting currency importing and exporting ã Where members of the community personally conveyed into and out of Australia, Australian currency or foreign currency not less than $10 000, a report must be made to Customs Officer when brought into or taken out of Australia Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning 6-7Australia Copyright © 2000 McGraw-Hill Suspect transactions One that causes the cash dealer to feel apprehensive or mistrustful about the transaction (non-cash and cash transactions) and may be relevant with respect to: • tax evasion or attempted evasion • an offence against the law of the Commonwealth or a territory • relating to the enforcement of the Proceeds of Crimes Act 1987 (Cwlth) Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning 6-8Australia Copyright © 2000 McGraw-Hill Opening new accounts Identification of signatory to account via: • identification reference • primary or secondary identification document Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning 6-9Australia Copyright â 2000 McGraw-Hill International funds transfer instructions ã Transferred into or out of Australia – electronically – telegraphically • Requires reporting Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning 6-10 Copyright © 2000 McGraw-Hill Australia Exemptions from reporting requirements If transaction: • • Entered on exemption register maintained by financial institutions eg Retail business Entertainment Hospitality business Vending machine business or individually approved transactions Approved cash dealer e.g Transporting currency business Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning 6-11 Copyright â 2000 McGraw-Hill Australia Identifying cash dealer ã Approved by director of AUSTRAC as a cash dealer who can verify the identity of signatories to accounts, utilising the 100 points system Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning 6-12 Copyright © 2000 McGraw-Hill Australia Penalties for failure to comply Natural person Body corporate Fine up to $25 000 Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning 6-13 Copyright © 2000 McGraw-Hill Australia ... administering Act: - collects - compiles - analyses, and - distributes information Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides... Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning 6- 3Australia Copyright © 2000 McGraw-Hill Australian Transaction... Authority • State law enforcement agencies Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher Slides prepared by Kay Fanning 6- 5Australia Copyright