COMBATING THE FINANCING OF PEOPLE SMUGGLING AND OTHER MEASURES BILL 2011

i Combating the Financing of People Smuggling and Other Measures Bill 2011 No. ,

2011

Contents

1 Short

title

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2 Commencement

.................................................................................

3 Schedule(s)

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Schedule 1--Remittance dealers

Part 1--Amendments

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Part 2--Transitional provisions relating to reporting entities

Part 3--Transitional provisions relating to other matters

Part 4--Transitional regulations

Schedule 2--Amendments relating to designated agencies

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Schedule 3--Verification of identity

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Privacy Act 1988

Schedule 4--Amendment of the Financial Transaction Reports

Act 1988

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

A Bill for an Act to amend the Anti-Money

Laundering and Counter-Terrorism Financing Act

2006, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Combating the Financing of People

Smuggling and Other Measures Act 2011.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 to 3

and anything in this

Act not elsewhere

covered by this table

The day this Act receives the Royal Assent.

2. Schedule 1,

items 1 to 11

A single day to be fixed by Proclamation.

However, if any of the provision(s) do not

commence within the period of 6 months

beginning on the day this Act receives the

Royal Assent, they commence on the day

after the end of that period.

3. Schedule 1,

items 12 and 13

The day this Act receives the Royal Assent.

4. Schedule 1,

items 14 to 48

At the same time as the provisions covered

by table item 2.

5. Schedule 1,

items 49 to 52

The day this Act receives the Royal Assent.

6. Schedule 1,

items 53 to 57

At the same time as the provisions covered

by table item 2.

7. Schedule 1,

item 58

The day this Act receives the Royal Assent.

8. Schedule 2

The day this Act receives the Royal Assent.

9. Schedule 3

The day this Act receives the Royal Assent.

10. Schedule 4

The day this Act receives the Royal Assent.

Note:

This table relates only to the provisions of this Act as originally

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be edited, in any published version of this Act.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

Schedule 1 Remittance dealers

Part 1 Amendments

4 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

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Schedule 1--Remittance dealers

Part 1--Amendments

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

1 Section 4 (paragraph beginning "Providers of")

Omit "designated remittance services", substitute "registrable

designated remittance services or registrable remittance network

services".

2 Section 5

Insert:

AAT reviewable decision means a reviewable decision:

(a) made by the AUSTRAC CEO personally; or

(b) made under subsection 75R(6).

3 Section 5

Insert:

infringement notice provision has the meaning given by

subsection 184(1A).

4 Section 5 (definition of Register of Providers of Designated

Remittance Services)

Repeal the definition.

5 Section 5

Insert:

registered independent remittance dealer means a person

registered under section 75C as an independent remittance dealer.

6 Section 5

Insert:

Remittance dealers Schedule 1

Amendments Part 1

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

registered remittance affiliate, of a registered remittance network

provider, means a person registered under section 75C as a

remittance affiliate of the registered remittance network provider.

7 Section 5

Insert:

registered remittance network provider means a person registered

under section 75C as a remittance network provider.

8 Section 5

Insert:

registrable remittance network service means a designated service

that:

(a) is covered by item 32A of table 1 in section 6; and

(b) is not of a kind specified in the AML/CTF Rules.

9 Section 5

Insert:

registration, of a person, means registration of the person as any of

the following:

(a) a remittance network provider;

(b) an independent remittance dealer;

provider.

10 Section 5

Insert:

Remittance Sector Register has the meaning given by section 75.

11 Section 5

Insert:

reviewable decision, in relation to a person, means any of the

following:

(a) a decision to refuse an application made by the person for

registration as:

Schedule 1 Remittance dealers

Part 1 Amendments

6 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

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(i) a remittance network provider; or

(ii) an independent remittance dealer; or

(iii) a remittance affiliate of a registered remittance network

provider;

(b) a decision to refuse an application made by a registered

remittance network provider for registration of the person as

a remittance affiliate of the registered remittance network

provider;

subsection 75B(6) (which deals with deemed refusal);

(d) a decision to cancel the registration of the person (see

section 75G);

(e) a decision to impose conditions on the registration of the

person;

(f) if the person is a registered remittance network provider--

any of the following:

(i) a decision to refuse to register another person as a

remittance affiliate of the registered remittance network

provider;

(ii) a decision to cancel the registration of another person as

a remittance affiliate of the registered remittance

network provider (see section 75G);

(iii) a decision to impose conditions on the registration of

another person as a remittance affiliate of the registered

remittance network provider.

12 Subsection 6(2) (after table item 32 of table 1)

Insert:

32A

operating a network of persons by providing a

platform or operating system (however

described), where:

(a) the persons in the network provide a

designated service referred to in item 31 or

32 by means of the platform or operating

system; and

(b) the operator is a non-financier.

the person who

provides designated

services as part of the

network

13 Subsection 6(6)

Remittance dealers Schedule 1

Amendments Part 1

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

After "section", insert ", other than item 32A of table 1,".

14 At the end of section 36

Add:

Registered remittance affiliates

(5) If an obligation is imposed by subsection (1) on a reporting entity

in its capacity as a registered remittance affiliate of a registered

remittance network provider, the obligation may be discharged by

the registered remittance network provider.

15 At the end of subsections 42(5) and 44(5)

Add ", other than a service covered by item 32A of table 1 in section 6".

16 Subsection 49(1)

Omit "reporting entity, require the reporting entity", substitute

"reporting entity or any other person, require the reporting entity or

other person".

17 Paragraph 49(1)(h)

After "reporting entity", insert "or other person".

18 At the end of paragraph 49(1)(i)

Add:

; and (iii) in the possession or control of the reporting entity or

other person.

19 Subsection 49(2)

Omit "reporting entity", substitute "person".

20 After section 49

Insert:

49A AML/CTF Rules may make provision in relation to reports by

registered remittance affiliates

(1) The AML/CTF Rules may make provision for and in relation to

reports required by this Part to be given by a reporting entity that is

Schedule 1 Remittance dealers

Part 1 Amendments

8 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

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a registered remittance affiliate of a registered remittance network

provider.

(2) Without limiting subsection (1), the AML/CTF Rules may provide:

(a) that an obligation imposed by this Part upon a registered

remittance affiliate of a registered remittance network

provider to provide a report is taken instead, or in addition, to

be an obligation imposed upon the registered remittance

network provider; and

(b) that an obligation imposed by this Part on a registered

remittance affiliate of a registered remittance network

provider may be discharged by the registered remittance

network provider; and

paragraph (a) must, or may, be given by the registered

remittance network provider in the manner specified in the

AML/CTF Rules.

21 Part 6 (heading)

Repeal the heading, substitute:

Part 6--The Remittance Sector Register

Division 1--Simplified outline

22 Section 73

Omit:

�

A person must not provide a registrable designated remittance

service unless the person's name is entered on the Register of

Providers of Designated Remittance Services.

substitute:

�

This Part provides for a tiered system of registration for

providers of registrable remittance network services and

providers of registrable designated remittance services.

Remittance dealers Schedule 1

Amendments Part 1

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

�

Division 2 sets out offences and civil penalties in relation to

the provision of registrable remittance network services and

registrable designated remittance services by persons who are

not registered.

�

Division 3 requires the AUSTRAC CEO to maintain the

Remittance Sector Register and sets out the process of

applying for registration.

�

Division 4 provides for review of decisions.

23 Before section 74

Insert:

Division 2--Restrictions on providing certain remittance

services

24 Subsection 74(1)

Repeal the subsection, substitute:

Registrable remittance network services

(1) A person (the first person) must not provide a registrable

remittance network service to another person if:

(a) the first person is not a registered remittance network

provider; or

(b) the first person is a registered remittance network provider,

but the person to whom the service is provided is not a

registered remittance affiliate of the first person.

Registrable designated remittance services--independents

(1A) A person must not provide a registrable designated remittance

service if:

(a) the person provides the service other than as part of a

remittance network operated by a registered remittance

network provider; and

(b) the person is not a registered independent remittance dealer.

Schedule 1 Remittance dealers

Part 1 Amendments

10 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

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Registrable designated remittance services--affiliates

(1B) A person must not provide a registrable designated remittance

service if:

(a) the person provides the service as part of a remittance

network operated by a registered remittance network

provider; and

(b) the person is not a registered remittance affiliate of the

registered remittance network provider.

Breach of conditions

(1C) A person must not breach a condition to which the registration of

the person as any of the following is subject:

(a) a remittance network provider;

(b) an independent remittance dealer;

provider.

Note:

The heading to section 74 is altered by omitting "registrable designated" and

substituting "certain".

25 Paragraph 74(2)(a)

After "subsection (1)", insert ", (1A), (1B) or (1C)".

26 Subsection 74(4)

After "subsection (1)" (wherever occurring), insert ", (1A), (1B) or

(1C)".

27 Subsection 74(6)

After "subsection (1)" (wherever occurring), insert ", (1A), (1B) or

(1C)".

28 Paragraph 74(8)(a)

After "subsection (1)", insert ", (1A), (1B) or (1C)".

29 Subsection 74(10)

Repeal the subsection, substitute:

Remittance dealers Schedule 1

Amendments Part 1

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

Civil penalty

(10) Subsections (1), (1A), (1B) and (1C) are civil penalty provisions.

30 Subsections 74(11) and (12)

Repeal the subsections.

31 Sections 75, 76, 77, 78, 79 and 79A

Repeal the sections, substitute:

Division 3--Registration of persons

75 Remittance Sector Register

(1) The AUSTRAC CEO must maintain a register for the purposes of

this Part, to be known as the Remittance Sector Register.

(2) The AUSTRAC CEO may maintain the Remittance Sector

(3) The Remittance Sector Register is not a legislative instrument.

(4) The AML/CTF Rules may make provision for and in relation to the

following:

(a) the correction of entries in the Remittance Sector Register;

(b) the publication of the Remittance Sector Register in whole or

part, or of specified information entered on the Remittance

Sector Register;

the Remittance Sector Register.

75A Information to be entered on the Remittance Sector Register

(1) If the AUSTRAC CEO decides to register a person under

subsection 75C(2), the AUSTRAC CEO must enter the following

details on the Remittance Sector Register:

(a) the name of the person;

(b) whether the person is registered as:

(i) a remittance network provider; or

(ii) an independent remittance dealer; or

Schedule 1 Remittance dealers

Part 1 Amendments

12 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

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(iii) a remittance affiliate of a registered remittance network

provider;

registered remittance network provider--the name of the

registered remittance network provider;

(d) any conditions to which the registration of the person is

subject;

(e) the date on which the registration takes effect;

(f) the registrable details in relation to the person.

(2) To avoid doubt, nothing in this Part prevents separate entries being

entered on the Remittance Sector Register in relation to the same

person in different capacities.

75B Applications for registration

(1) A person may apply in writing to the AUSTRAC CEO for

registration as:

(a) a remittance network provider; or

(b) an independent remittance dealer; or

registered remittance network provider.

(2) A registered remittance network provider may apply in writing to

the AUSTRAC CEO for another person to be registered as a

remittance affiliate of the registered remittance network provider.

(3) An application under subsection (1) or (2) must:

(a) be in the approved form; and

(b) contain the information required by the AML/CTF Rules.

(4) Without limiting the information that the AML/CTF Rules may

require under paragraph (3)(b), the AML/CTF Rules may require

information relating to the matters mentioned in paragraph

75C(2)(a) or in Rules made under paragraph 75C(2)(b) (these

provisions deal with matters to which the AUSTRAC CEO must

have regard in deciding whether to register a person).

(5) A person may apply for registration as a remittance affiliate of a

registered remittance network provider as mentioned in

paragraph (1)(c) only if:

Remittance dealers Schedule 1

Amendments Part 1

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

(a)

either:

(i) when the person makes the application, the person is a

registered independent remittance dealer; or

(ii) the application is made in conjunction with an

application by the person for registration as a registered

independent remittance dealer; and

(b) the registered remittance network provider has consented to

the making of the application.

Deemed refusal in certain circumstances

(6) If the AUSTRAC CEO has not made a decision on the application

within the relevant period, the AUSTRAC CEO is taken to have

decided not to register the person at the end of the relevant period.

The relevant period is the period of 90 days beginning:

(a) on the day the application is made; or

(b) if the AUSTRAC CEO requests information under subsection

75N(1) in relation to the application--on the day the

information is provided.

(7) However, if the AUSTRAC CEO determines in writing that:

(a) the application cannot be dealt with properly within the 90

day period, either because of its complexity or because of

other special circumstances; and

(b) that period is extended by a specified period of not more than

30 days;

the relevant period is that period as so extended. The AUSTRAC

CEO must notify the applicant in writing of the determination

before the end of the 90 day period.

75C Registration by AUSTRAC CEO

When section applies

(1) This section applies if an application has been made under

section 75B for registration of a person.

Schedule 1 Remittance dealers

Part 1 Amendments

14 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

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When AUSTRAC CEO must register a person

(2) The AUSTRAC CEO must decide to register the person in

accordance with the application if the AUSTRAC CEO is satisfied

that it is appropriate to do so, having regard to:

(a) whether registering the person would involve a significant

money laundering, financing of terrorism or people

smuggling risk; and

(b) such other matters (if any) as are specified in the AML/CTF

Rules under this paragraph.

Matters that may be specified in the AML/CTF Rules

(3) Without limiting the matters that the AML/CTF Rules may specify

under paragraph (2)(b), the matters may relate to the following:

(a) offences of which the applicant for registration, a person

proposed to be entered on the Remittance Sector Register as

a remittance affiliate of the applicant, or any other person,

has been charged or convicted under the law of the

Commonwealth, a State or Territory or a foreign country;

(b) the compliance or non-compliance of the applicant, a person

proposed to be entered on the Remittance Sector Register as

a remittance affiliate of the applicant, or any other person,

with this Act or any other law;

applicant, a person proposed to be entered on the Remittance

Sector Register as a remittance affiliate of the applicant, or

any other person;

(d) the kinds of designated services to be provided by the

applicant or by a person proposed to be entered on the

Remittance Sector Register as a remittance affiliate of the

applicant;

(e) the consent of a person proposed to be entered on the

Remittance Sector Register as a remittance affiliate of the

applicant.

Notice of decision to register

(4) The AUSTRAC CEO must, as soon as practicable after deciding to

(a) the applicant for registration; and

Remittance dealers Schedule 1

Amendments Part 1

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

(b) if the application was made by a registered remittance

network provider for another person to be registered as a

remittance affiliate of the registered remittance network

provider--the other person.

Contents of notice of decision to register

(5) A notice under subsection (4) in relation to a decision to register a

person must specify:

(a) whether the person is registered as:

(i) a remittance network provider; or

(ii) an independent remittance dealer; or

(iii) a remittance affiliate of a registered remittance network

provider; and

(b) the conditions (if any) to which the registration is subject (see

section 75E); and

Note:

The AUSTRAC CEO is required to give notice under subsection

75R(1) or subsection 75S(1) if registration is refused or registration is

granted subject to conditions.

75D Spent convictions scheme

The AML/CTF Rules made under paragraph 75B(3)(b) or

75C(2)(b) must not affect the operation of Part VIIC of the Crimes

Act 1914 (which includes provisions that, in certain circumstances,

relieve persons from the requirement to disclose spent convictions

and require persons aware of such convictions to disregard them).

75E Registration may be subject to conditions

(1) The AUSTRAC CEO may, in writing, impose conditions to which

the registration of a person under subsection 75C(2) is subject.

(2) Without limiting the conditions that the AUSTRAC CEO may

impose under subsection (1), the conditions may relate to the

following:

(a) the volume of funds remitted (whether by reference to a

particular time, a particular amount or otherwise);

(b) the destination (however described) of funds remitted;

Schedule 1 Remittance dealers

Part 1 Amendments

16 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

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Note:

Section 75M imposes a general obligation in relation to notification of

changes in circumstances.

75F When registration of a person ceases

(1) The registration of a person ceases at the earliest of the following

times:

(a) when the cancellation of the registration of the person under

section 75G takes effect;

(b) when the entry relating to the registration of the person is

removed from the Remittance Sector Register under

subsection 75K(2);

registration took effect;

(d) in the case of an individual--when the individual dies;

(e) in the case of a body corporate--when the body corporate

ceases to exist.

(2) Paragraph (1)(c) is subject to the AML/CTF Rules made under

section 75J (which deals with renewal of registration).

75G Cancellation of registration

(1) The AUSTRAC CEO may cancel the registration of a person if the

AUSTRAC CEO is satisfied that it is appropriate to do so, having

regard to:

(a) whether the continued registration of the person involves, or

may involve, a significant money laundering, financing of

terrorism or people smuggling risk; or

(b) one or more breaches by the person of a condition of

registration; or

Rules under this paragraph.

(2) The cancellation of the registration of a person takes effect on the

day specified in the notice given to the person under subsection

75R(1).

(3) The AUSTRAC CEO may publish, in the manner specified in the

AML/CTF Rules, a list of the names of persons whose registration

has been cancelled and the date the cancellation takes effect.

Remittance dealers Schedule 1

Amendments Part 1

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

75H Suspension of registration

(1) The AML/CTF Rules may make provision for and in relation to the

suspension of registrations by the AUSTRAC CEO under this Part.

(2) The AML/CTF Rules may provide for matters including, but not

limited to, the following:

(a) the grounds for suspension of registration;

(b) the effect of suspension on registration;

(d) the effect of suspension of a registered remittance network

provider upon its registered remittance affiliates;

(e) making entries in and removing entries from the Remittance

Sector Register in relation to suspension;

(f) notices of suspension;

(g) review of decisions relating to suspension.

75J Renewal of registration

(1) The AML/CTF Rules may make provision for and in relation to the

renewal of registrations by the AUSTRAC CEO under this Part.

(2) The AML/CTF Rules may provide for matters including, but not

limited to, the following:

(a) the making of applications for renewal;

(b) the period within which applications for renewal may be

made;

(d) entries in the Remittance Sector Register in relation to

renewal;

(e) the giving of notices relating to decisions on applications for

renewal;

(f) review of decisions relating to applications for renewal;

(g) the period for which renewed registrations have effect.

(3) In particular, the AML/CTF Rules may provide that:

(a) if the registration of a person would otherwise cease at the

end of the period of 3 years commencing on the day on

which the registration took effect; and

Schedule 1 Remittance dealers

Part 1 Amendments

18 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

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(b) before the end of that period, an application for renewal of

the registration was made to the AUSTRAC CEO within the

period, and in the manner provided for, in the AML/CTF

Rules;

the registration of the person continues in effect after the end of

that period in accordance with the Rules.

75K Removal of entries from the Remittance Sector Register

Removal on request

(1) A person who is one or more of the following:

(a) a registered remittance network provider;

(b) a registered independent remittance dealer;

network provider;

may request the AUSTRAC CEO, in writing, to remove the entry

relating to one or more of the registrations of the person from the

Remittance Sector Register.

(2) If a person makes a request under subsection (1) in relation to one

or more registrations, the AUSTRAC CEO must remove from the

Remittance Sector Register the entry relating to each registration to

which the request relates.

Removal on cessation of registration--remittance network

providers

(3) If a person ceases to be a registered remittance network provider,

the AUSTRAC CEO must remove from the Remittance Sector

(a) the entry relating to the registered remittance network

provider; and

(b) each entry relating to a registered remittance affiliate of the

registered remittance network provider.

Removal on cessation of registration--independent remittance

dealers and affiliates

(4) If a person ceases to be a registered independent remittance dealer

or a registered remittance affiliate of a registered remittance

network provider, the AUSTRAC CEO must remove from the

Remittance dealers Schedule 1

Amendments Part 1

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

Remittance Sector Register each entry relating to the independent

remittance dealer or the remittance affiliate, as the case requires.

Notice of removal--remittance network providers

(5) The AUSTRAC CEO must, as soon as reasonably practicable,

notify a remittance network provider, in writing, if:

(a) the AUSTRAC CEO removes from the Remittance Sector

provider; and

(b) the removal of the affiliate was not because of the removal of

the provider as required by paragraph (3)(b).

Notice of removal--affiliates of remittance network providers

(6) The AUSTRAC CEO must, as soon as reasonably practicable,

notify each affiliate of a remittance network provider, in writing, if

the AUSTRAC CEO removes from the Remittance Sector Register

the entry relating to the provider.

75L AML/CTF Rules--general provision

If a provision of this Part provides for the AML/CTF Rules to

make provision in relation to a matter relating to the registration or

proposed registration of a person, the AML/CTF Rules may make

different provision in relation to a matter depending on whether the

registration or proposed registration of the person is as:

(a) a remittance network provider; or

(b) an independent remittance dealer; or

provider.

75M Registered persons to advise of material changes in

circumstance etc.

(1) A person who is registered under this Part as:

(a) a remittance network provider; or

(b) an independent remittance dealer; or

provider that applied for registration on its own behalf (see

paragraph 75B(1)(c));

Schedule 1 Remittance dealers

Part 1 Amendments

20 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

must advise the AUSTRAC CEO of the following:

(d) any change in circumstances that could materially affect the

person's registration;

(e) any matters specified in the AML/CTF Rules for the

purposes of this paragraph.

(2) A registered remittance affiliate of a registered remittance network

provider must advise the provider of the following:

(a) any change in circumstances that could materially affect the

person's registration;

(b) any matters specified in the AML/CTF Rules for the

purposes of this paragraph;

unless the affiliate applied for registration on its own behalf (see

paragraph 75B(1)(c)).

(3) A registered remittance network provider must advise the

AUSTRAC CEO of any changes notified to it under subsection (2).

(4) A person who is required by this section to advise the AUSTRAC

CEO or a registered remittance network provider of a change in

circumstances or a matter must do so in accordance with the

approved form, and:

(a) in the case of a requirement under subsection (1) or (2)--

within 14 days of the change in circumstances or the matter

arising (however described); and

(b) in the case of a requirement under subsection (3)--within 7

days of the registered remittance network provider concerned

receiving the advice.

Civil penalty

(5) Subsections (1), (2) and (3) are civil penalty provisions.

75N AUSTRAC CEO may request further information

(1) The AUSTRAC CEO may, in writing, request further information

from any person for the purposes of making a decision under this

Part.

(2) The AUSTRAC CEO is not required to make a decision under this

Part until any information requested under subsection (1) in

relation to the decision has been provided.

Remittance dealers Schedule 1

Amendments Part 1

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

75P Immunity from suit

An action, suit or proceeding (whether criminal or civil) does not

lie against:

(a) the Commonwealth; or

(b) the AUSTRAC CEO; or

in relation to the publication of the Remittance Sector Register or a

list of a kind mentioned in subsection 75G(3).

Division 4--Notice and review of decisions

75Q Steps to be taken by AUSTRAC CEO before making certain

reviewable decisions

(1) Before making a reviewable decision in relation to a person, the

AUSTRAC CEO must give a written notice to the person

containing:

(a) the terms of the proposed decision; and

(b) if the proposed decision is to cancel a registration--the date

on which the cancellation is proposed to take effect; and

(d) a statement that the person may, within 28 days of the giving

of the notice, make a submission under this section in relation

to the proposed decision.

(2) The AUSTRAC CEO is not required to give a notice under this

section if the AUSTRAC CEO is satisfied that it is inappropriate to

do so because of the urgency of the circumstances.

75R Internal review of reviewable decisions

Notice to be given

(1) The AUSTRAC CEO must, as soon as practicable after a

reviewable decision is made in relation to a person (other than an

AAT reviewable decision), give a written notice to the person

containing:

(a) the terms of the decision; and

Schedule 1 Remittance dealers

Part 1 Amendments

22 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

(b) if the decision is to cancel the registration of a person--the

date on which the cancellation takes effect; and

(d) a statement setting out particulars of the person's right to

have the decision reviewed under this section.

(2) Subsection (1) does not require the AUSTRAC CEO to give a

notice in relation to a decision that is taken to be made because of

the operation of subsection 75B(6) (which deals with deemed

refusal).

Applications for internal review

(3) A person to whom a reviewable decision referred to in

subsection (1) relates may apply to the AUSTRAC CEO for review

of the decision.

(4) An application for review must:

(a) be in the approved form; and

(b) contain the information required by the AML/CTF Rules;

and

first came to the notice of the applicant, or within such period

(if any) as the AUSTRAC CEO, either before or after the end

of the 30 day period, allows.

Internal review of decision

(5) The AUSTRAC CEO must, on receiving an application under

subsection (3) for review of a reviewable decision, cause the

decision to be reviewed by a person to whom the AUSTRAC

CEO's power under this section is delegated, being a person who:

(a) was not involved in making the decision; and

(b) occupies a position in AUSTRAC that is senior to that

occupied by any person involved in making the decision.

(6) A person who reviews a reviewable decision under this section

may:

(a) make a decision affirming, varying or revoking the

reviewable decision; and

(b) if the person revokes the decision--make such other decision

as the person thinks appropriate.

Remittance dealers Schedule 1

Amendments Part 1

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

Failure to comply does not affect validity

(7) A failure to comply with the requirements of subsection (1) in

relation to a decision does not affect the validity of the decision.

75S AAT review of decisions

Notice to be given

(1) The AUSTRAC CEO must, as soon as practicable after an AAT

reviewable decision is made in relation to a person, give a written

notice to the person containing:

(a) the terms of the AAT reviewable decision; and

(b) if the AAT reviewable decision is to cancel the registration of

a person--the date on which the cancellation takes effect;

and

(d) a statement setting out particulars of the person's right to

have the decision reviewed by the Administrative Appeals

Tribunal.

Note: An

AAT reviewable decision is a reviewable decision made by the

AUSTRAC CEO personally or made on review under subsection

75R(6).

Applications for review

(2) Applications may be made to the Administrative Appeals Tribunal

for review of an AAT reviewable decision by a person to whom the

AAT reviewable decision concerned relates.

Note: The

Administrative Appeals Tribunal Act 1975 provides for the

manner of applying for review, etc.

Failure to comply does not affect validity

(3) A failure to comply with the requirements of subsection (1) in

relation to an AAT reviewable decision does not affect the validity

of the decision.

Schedule 1 Remittance dealers

Part 1 Amendments

24 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

Division 5--Basis of registration

75T Basis of registration

Registration under this Part is on the basis that:

(a) the registration may cease as mentioned in section 75F; and

(b) the registration may be suspended as mentioned in

section 75H; and

mentioned in section 75E; and

(d) the registration may cease, be suspended or be made subject

to conditions by or under later legislation; and

(e) no compensation is payable if the registration ceases, is

suspended or made subject to conditions as mentioned in any

of the above paragraphs.

32 After subsection 84(5)

Insert:

Registered remittance affiliates of a registered remittance network

provider

(5A) A reporting entity that is a registered remittance network provider

must make available a standard anti-money laundering and

counter-terrorism financing program to its registered remittance

affiliates for the purpose of adoption and maintenance under

section 81 by those affiliates. To avoid doubt, this subsection does

not prevent a remittance affiliate from adopting a program other

than one made available under this section.

Civil penalty

(5B) Subsection (5A) is a civil penalty provision.

33 After subsection 123(7)

Insert:

(7A) Subsection (2) does not apply to the disclosure of information by a

reporting entity if:

Remittance dealers Schedule 1

Amendments Part 1

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

(a) the reporting entity is a registered remittance affiliate of a

registered remittance network provider and the disclosure is

made to the registered remittance network provider; or

(b) the reporting entity is a registered remittance network

provider and the disclosure is made to a registered remittance

affiliate of the registered remittance network provider.

34 Subparagraph 167(1)(a)(iii)

Omit "Register of Providers of Designated Remittance Services",

substitute "Remittance Sector Register".

35 Division 3 of Part 15 (heading)

Repeal the heading, substitute:

Division 3--Infringement notices for certain

contraventions

36 Subsection 184(1)

Omit "subsection 53(3) or 59(4)", substitute "an infringement notice

provision".

37 After subsection 184(1)

Insert:

(1A)

infringement notice provision means any of the following

provisions:

(a) subsection 53(3) (which deals with reports about movements

of physical currency);

(b) subsection 59(4) (which deals with reports about movements

of bearer negotiable instruments);

providing certain remittance services if unregistered or in

breach of a condition of registration);

(d) subsection 75M(1) (which deals with notifying the

AUSTRAC CEO of certain matters).

38 Section 185

Before "An", insert "(1)".

Schedule 1 Remittance dealers

Part 1 Amendments

26 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

39 Paragraph 185(c)

Omit "subsection 53(3) or 59(4)", substitute "the infringement notice

provision".

40 At the end of section 185

Add:

(2) An infringement notice may specify more than one alleged

contravention of one or more infringement notice provisions. If it

does so, the infringement notice must set out the details referred to

in paragraph (1)(c) in relation to each alleged contravention.

41 After section 186

Insert:

186A Amount of penalty--breaches of certain provisions of Part 6

Infringement notice--bodies corporate

(1) The penalty to be specified in an infringement notice for an alleged

contravention of subsection 74(1), (1A), (1B), or (1C) or 75M(1) (a

Part 6 infringement notice provision) by a body corporate must be

a pecuniary penalty equal to:

(a) if the alleged contravention is of a kind specified in the

AML/CTF Rules under subsection (3)--the number of

penalty units specified in the AML/CTF Rules in relation to

that kind of contravention; or

(b) otherwise--60 penalty units.

Infringement notice--persons other than bodies corporate

(2) The penalty to be specified in an infringement notice for an alleged

contravention of a Part 6 infringement notice provision by a person

other than a body corporate must be a pecuniary penalty equal to:

(a) if the alleged contravention is of a kind specified in the

AML/CTF Rules under subsection (3)--the number of

penalty units specified in the AML/CTF Rules in relation to

that kind of contravention; or

(b) otherwise--12 penalty units.

Remittance dealers Schedule 1

Amendments Part 1

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

AML/CTF Rules may specify penalty units

(3) For the purposes of paragraphs (1)(a) and (2)(a), the AML/CTF

Rules may:

(a) set out one or more kinds of alleged contraventions of a

Part 6 infringement notice provision; and

(b) for each kind of contravention set out in the AML/CTF

Rules--specify a particular number of penalty units that

applies.

(4) Without limiting the kinds of contraventions that may be specified

in the AML/CTF Rules made under paragraph (3)(a), the

contraventions may be described by reference to the following:

(a) whether an alleged contravention is one of a number of

alleged contraventions of a Part 6 infringement notice

provision specified in a particular infringement notice;

(b) whether a person alleged to have contravened one or more

Part 6 infringement notice provisions has previously been

given an infringement notice in relation to an alleged

contravention of a Part 6 infringement notice provision.

(5) The number of penalty units specified in AML/CTF Rules made

under paragraph (3)(b) in relation to a particular kind of

contravention must not exceed:

(a) in the case of an alleged contravention by a body corporate--

120 penalty units; or

(b) in the case of an alleged contravention by a person other than

a body corporate--24 penalty units.

Note:

The heading to section 186 is altered by adding at the end "--breaches of subsection

53(3) or 59(4)".

42 Paragraph 188(1)(a)

Omit "subsection 53(3) or 59(4)", substitute "an infringement notice

provision".

43 Paragraph 189(a)

Omit "subsection 53(3) or 59(4)", substitute "an infringement notice

provision".

44 Subparagraph 189(b)(i)

After "or 59(3)", insert "or 74(2), (4), (6) or (8)"

Schedule 1 Remittance dealers

Part 1 Amendments

28 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

45 Subparagraph 189(b)(ii)

Omit "subsection 53(3) or 59(4)", substitute "an infringement notice

provision".

46 Subparagraph 189(c)(i)

After "or 59(3)", insert "or 74(2), (4), (6) or (8)".

47 Subparagraph 189(c)(ii)

Omit "subsection 53(3) or 59(4)", substitute "an infringement notice

provision".

48 After subsection 190(2)

Insert:

(2A) Subsection (1) does not require the AUSTRAC CEO to monitor,

and report individually upon, each reporting entity that is registered

under Part 6 of this Act, but the AUSTRAC CEO must monitor

and report generally upon those reporting entities.

Remittance dealers Schedule 1

Transitional provisions relating to reporting entities Part 2

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

Part 2--Transitional provisions relating to reporting

entities

49 Ongoing customer due diligence

If an obligation is imposed by subsection 36(1) of the Anti-Money

Laundering and Counter-Terrorism Financing Act 2006:

(a) on or after the day on which this Act receives the Royal

Assent; and

(b) on a reporting entity:

(i) that provides a designated service covered by item 31 or

32 of table 1 in section 6 of that Act; and

(ii) that provides that service as part of a network of persons

referred to in item 32A of that table operated by another

reporting entity;

that obligation may be discharged by that other reporting entity.

50 AML/CTF Rules may make provision in relation to reports

by certain reporting entities

(1)

The AML/CTF Rules may make provision for and in relation to reports

required by Part 3 of the Anti-Money Laundering and

Counter-Terrorism Financing Act 2006 to be given, on or after the day

on which this Act receives the Royal Assent, by a reporting entity (the

remittance affiliate):

(a) that provides a designated service covered by item 31 or 32

of table 1 in section 6 of that Act; and

(b) that provides that service as part of a network of persons

referred to in item 32A of that table operated by another

reporting entity (the remittance network provider).

(2)

Without limiting subitem (1), the AML/CTF Rules may provide:

(a) that an obligation imposed by that Part upon the remittance

affiliate to provide a report is taken instead, or in addition, to

be an obligation imposed upon the remittance network

provider; and

(b) that an obligation imposed by this Part on the remittance

affiliate may be discharged by the remittance network

provider; and

Schedule 1 Remittance dealers

Part 2 Transitional provisions relating to reporting entities

30 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

paragraph (a) must, or may, be given by the remittance

network provider in the manner specified in the AML/CTF

Rules.

51 Tipping off

(1)

Subsection 123(2) of the Anti-Money Laundering and

Counter-Terrorism Financing Act 2006 does not apply to the disclosure

of information by a reporting entity on or after the day on which this

Act receives the Royal Assent if:

(a) the reporting entity is an entity:

(i) that provides a designated service covered by item 31 or

32 of table 1 in section 6 of that Act; and

(ii) that provides that service as part of a network of persons

referred to in item 32A of that table operated by another

reporting entity; and

(b) the disclosure is made to that other reporting entity.

(2)

Subsection 123(2) of the Anti-Money Laundering and

Counter-Terrorism Financing Act 2006 does not apply to the disclosure

of information by a reporting entity on or after the day on which this

Act receives the Royal Assent if:

(a) the reporting entity provides a designated service covered by

item 32A of table 1 in section 6 of that Act; and

(b) the disclosure is made to a customer of that designated

service.

52 Application of the reporting entity provisions of the new

law to remittance network providers

(1)

The following provisions of the Anti-Money Laundering and

Counter-Terrorism Financing Act 2006 do not apply, until 12 months

after the day on which this Act receives the Royal Assent, to a reporting

entity in its capacity as an entity that provides a designated service

covered by item 32A of table 1 in section 6 of that Act:

(a) Part 2 (which deals with identification procedures);

(b) Division 5 of Part 3 (which deals with compliance reports);

(d) Divisions 3 and 5 of Part 10 (which deal with record

keeping).

Schedule 1 Remittance dealers

Part 3 Transitional provisions relating to other matters

32 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

Part 3--Transitional provisions relating to other

matters

53 Continuation of old law for certain purposes relating to

the old Register

(1) The

Anti-Money Laundering and Counter-Terrorism Financing Act

2006 is taken to continue in operation after the registration

commencement day for the purposes of this item.

(2)

After the registration commencement day:

(a) the old Register is taken to continue in existence; and

(b) subject to this item, the AUSTRAC CEO must maintain the

old Register.

(3)

Despite subitems (1) and (2):

(a) except with the consent of the AUSTRAC CEO, an

application cannot be made for a person's name and

registrable details to be entered on the old Register after the

registration commencement day; and

(b) the AUSTRAC CEO may enter a person's name and

registrable details on the old Register after the registration

commencement day only if an application has been made

with the consent of the AUSTRAC CEO.

(4)

The AUSTRAC CEO must not give consent as mentioned in

paragraph (3)(a) unless he or she is satisfied that it is appropriate to do

so, having regard to the matters (if any) specified in the Rules.

(5)

The AUSTRAC CEO may cancel a person's registration on the old

involve a significant money laundering, financing of terrorism or people

smuggling risk.

(6)

The AUSTRAC CEO must remove a person's name and registrable

details from the old Register if:

(a) an application is made under the new law for registration of

the person and the application is finally determined; or

(b) the person's registration is cancelled under subitem (5).

Remittance dealers Schedule 1

Transitional provisions relating to other matters Part 3

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

(7)

A decision to refuse consent under paragraph (3)(a) and a decision to

cancel a person's registration under subitem (5) are taken to be

reviewable decisions within the meaning of section 5 of the new law.

54 Cessation of Register

The AUSTRAC CEO ceases to be required to maintain the old Register,

and the old Register ceases to have effect, when the AUSTRAC CEO

has finally determined all applications made by, or in relation to, the

following:

(a)

persons:

(i) whose names and registrable details were entered on the

old Register as at, or after, the registration

commencement day; and

(ii) who made an application, under the new law, for

registration as an independent remittance dealer during

the period of 6 months commencing on the registration

commencement day;

(b)

persons:

(i) whose names and registrable details were on the old

day; and

(ii) in relation to whom an application was made, under the

new law, for registration as a remittance affiliate of a

registered remittance network provider during the

period of 12 months commencing on the registration

commencement day.

Note:

Under item 55, persons entered on the old Register have 6 months for an application to

be made for registration as an independent remittance dealer, and 12 months for an

application to be made for registration as a remittance affiliate of a registered remittance

network provider.

55 Modifications of new law for certain purposes

Registrable remittance network services--persons who were providing

such services immediately before commencement have 12 months to

apply for registration

(1)

Subsection 74(1) of the new law does not apply to the provision of a

registrable remittance network service by a person on or after the

registration commencement day if:

Schedule 1 Remittance dealers

Part 3 Transitional provisions relating to other matters

34 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

(a) immediately before the registration commencement day, the

person was providing a service of that kind; and

(b)

either:

(i) the service was provided during the period of 12 months

beginning on the registration commencement day; or

(ii) during the period of 12 months beginning on the

registration commencement day, the person made an

application under the new law for registration as a

remittance network provider, and the application had

not been finally determined at the service provision

time.

Registrable designated remittance services--persons entered on old

Register have 6 months to apply for registration as an independent

remittance dealer

(2)

Subsection 74(1A) of the new law does not apply to the provision of a

registrable designated remittance service by a person on or after the

registration commencement day if:

(a) when the service was provided, the person's name and

registrable details were entered on the old Register as

continued in existence by item 53 of this Schedule; and

(b)

either:

(i) the service was provided during the period of 6 months

beginning on the registration commencement day; or

(ii) during the period of 6 months beginning on the

registration commencement day, the person made an

application under the new law for registration as an

independent remittance dealer, and the application had

not been finally determined when the service was

provided.

Registrable designated remittance services provided by persons entered

on old Register--persons entered on old Register have 12 months to

apply for registration as a remittance affiliate

(3)

Subsection 74(1B) of the new law does not apply to the provision of a

designated remittance service by a person on or after the registration

commencement day if:

Remittance dealers Schedule 1

Transitional provisions relating to other matters Part 3

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

(a) when the service was provided, the person's name and

registrable details were entered on the old Register as

continued in existence by item 53 of this Schedule; and

(b)

either:

(i) the service was provided during the period of 12 months

beginning on the registration commencement day; or

(ii) during the period of 12 months beginning on the

registration commencement day, an application for

registration of the person as a remittance affiliate of a

registered remittance network provider was made under

the new law, and the application had not been finally

determined when the service was provided.

56 Continuation of certain provisions of the old law

(1)

Section 79A of the Anti-Money Laundering and Counter-Terrorism

Financing Act 2006, as in force immediately before the registration

commencement day, continues in operation, on and after the registration

commencement day, in relation to proceedings in respect of a provision

of that Act, as if it had not been repealed.

(2)

Section 167 of the of the Anti-Money Laundering and

Counter-Terrorism Financing Act 2006 has effect, on and after the

registration commencement day, as if the reference in that section to the

Remittance Sector Register included a reference to the old Register.

57 Definitions

(1)

In this Part:

new law means the Anti-Money Laundering and Counter-Terrorism

Financing Act 2006 as in force after the registration commencement

day.

old Register means the Register of Providers of Designated Remittance

Services within the meaning of the Anti-Money Laundering and

Counter-Terrorism Financing Act 2006, as in force immediately before

the registration commencement day.

registration commencement day means the day on which item 1 of this

Schedule commences.

(2)

For the purposes of this Division, an application for registration of a

person is finally determined when:

Schedule 2 Amendments relating to designated agencies

38 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

Schedule 2--Amendments relating to

designated agencies

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

1 Section 5

Insert:

Defence Department means the Department administered by the

Defence Minister.

2 Section 5

Insert:

defence intelligence agency means DIGO, DIO or DSD.

3 Section 5

Insert:

Defence Minister means the Minister responsible for administering

the Defence Act 1903.

4 Section 5

Insert:

Department of Foreign Affairs and Trade means the Department

administered by the Foreign Affairs Minister.

5 Section 5 (after paragraph (k) of the definition of

designated agency)

Insert:

(ka) the Department of Foreign Affairs and Trade; or

6 Section 5 (after paragraph (ga) of the definition of

designated agency)

Insert:

(gb)

DIGO;

Amendments relating to designated agencies Schedule 2

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

(gc)

DIO;

(gd)

DSD;

(ge)

ONA;

7 Section 5

Insert:

DIGO means that part of the Department of Defence known as the

Defence Imagery and Geospatial Organisation, and includes any

part of the Defence Force that performs functions on behalf of that

part of the Department.

8 Section 5

Insert:

DIO means that part of the Department of Defence known as the

Defence Intelligence Organisation, and includes any part of the

Defence Force that performs functions on behalf of that part of the

Department.

9 Section 5

Insert:

DSD means that part of the Department of Defence known as the

Defence Signals Directorate, and includes any part of the Defence

Force that performs functions on behalf of that part of the

Department.

10 Section 5

Insert:

Foreign Affairs Minister means the Minister responsible for

administering the Diplomatic Privileges and Immunities Act 1967.

11 Section 5

Insert:

ONA means the Office of National Assessments established by the

Office of National Assessments Act 1977.

12 Paragraph 127(3)(b)

Schedule 2 Amendments relating to designated agencies

40 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

Omit "or 133A", insert ", 133A, 133B or 133C".

13 Subsection 127(4)

Omit all the words from and including "under", substitute:

under any of the following provisions:

(a)

subsection

125(4);

(b)

section

126;

(d) subsection 132(2), (4), (5) or (7);

(e) subsection 133(2) or 133A(2);

(f) section 133B or 133C.

14 After subsection 128(13A)

Insert:

Defence intelligence officials

(13B) The following provisions have effect:

(a) an official of a defence intelligence agency may disclose

AUSTRAC information to an IGIS official for the purposes

of, or in connection with, the performance of the IGIS

official's duties in relation to the defence intelligence agency

or employees of the defence intelligence agency;

(b) an official of a defence intelligence agency may disclose

AUSTRAC information to the Defence Minister if the

disclosure is for the purposes of, or in connection with, the

performance of the Defence Minister's responsibilities in

relation to the defence intelligence agency;

AUSTRAC information to the Minister responsible for the

administration of the Telecommunications (Interception and

Access) Act 1979 if the disclosure is for the purposes of, or in

connection with, the performance of that Minister's functions

under that Act;

(d) an official of DIGO or DSD may disclose AUSTRAC

information to a Minister who, under section 9A of the

Intelligence Services Act 2001, is empowered to issue an

authorisation to DIGO or DSD, if the disclosure is for the

purposes of, or in connection with, the exercise of that power.

Amendments relating to designated agencies Schedule 2

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

ONA officials

(13C) The following provisions have effect:

(a) an official of ONA may disclose AUSTRAC information to

an IGIS official for the purposes of, or in connection with,

the performance of the IGIS official's duties in relation to

ONA or employees of ONA;

(b) an official of ONA may disclose AUSTRAC information to

the Minister responsible for the administration of the

Telecommunications (Interception and Access) Act 1979 if

the disclosure is for the purposes of, or in connection with,

the performance of that Minister's functions under that Act;

the Prime Minister if the disclosure is for the purposes of, or

in connection with, the performance of the Prime Minister's

responsibilities in relation to ONA.

(13D) Subsections (13B) and (13C) do not limit the generality of any

other provision of this section.

15 Paragraphs 128(19)(a), (b), (ba), (d), (e), (ea) and (g)

Repeal the paragraphs, substitute:

(a) disclose AUSTRAC information to another IGIS official for

the purposes of, or in connection with, the performance of

that official's duties in relation to the following designated

agencies, or employees of the following designated agencies:

(i)

ASIO;

(ii)

ASIS;

(iii) a defence intelligence agency;

(iv)

ONA;

(v) any other Commonwealth agency (within the meaning

of the Inspector-General of Intelligence and Security

Act 1986); or

(b) disclose AUSTRAC information by means of including the

information in a draft report, or a report, under Division 4 of

the Inspector-General of Intelligence and Security Act 1986;

Inspector-General of Intelligence and Security Act 1986; or

Schedule 2 Amendments relating to designated agencies

42 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

16 At the end of Subdivision D of Division 4 of Part 11

Add:

133B When the Director of a defence intelligence agency may

communicate AUSTRAC information to a foreign

intelligence agency

(1) The Director of a defence intelligence agency may communicate

AUSTRAC information to a foreign intelligence agency if the

Director is satisfied that:

(a) the foreign intelligence agency has given appropriate

undertakings for:

(i) protecting the confidentiality of the information; and

(ii) controlling the use that will be made of it; and

(iii) ensuring that the information will be used only for the

purpose for which it is communicated to the foreign

country; and

(b) it is appropriate, in all the circumstances of the case, to do so.

(2) The Director of a defence intelligence agency may, in writing,

authorise an official of the defence intelligence agency to access

the AUSTRAC information and communicate it to the foreign

intelligence agency on the Director's behalf.

Note:

For variation and revocation, see subsection 33(3) of the Acts

Interpretation Act 1901.

133C When the Director-General of ONA may communicate

AUSTRAC information to a foreign intelligence agency

(1) The Director-General of ONA may communicate AUSTRAC

information to a foreign intelligence agency if the Director-General

is satisfied that:

(a) the foreign intelligence agency has given appropriate

undertakings for:

(i) protecting the confidentiality of the information; and

(ii) controlling the use that will be made of it; and

(iii) ensuring that the information will be used only for the

purpose for which it is communicated to the foreign

country; and

(b) it is appropriate, in all the circumstances of the case, to do so.

Amendments relating to designated agencies Schedule 2

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

(2) The Director-General of ONA may, in writing, authorise an official

of ONA to access the AUSTRAC information and communicate it

to the foreign intelligence agency on the Director-General's behalf.

Note:

For variation and revocation, see subsection 33(3) of the Acts

Interpretation Act 1901.

Schedule 3 Verification of identity

44 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

Schedule 3--Verification of identity

Anti-Money Laundering and Counter-Terrorism Financing

Act 2006

1 Section 5

Insert:

assessment, in relation to an individual, means an assessment

prepared or provided by a credit reporting agency under paragraph

35B(1)(a) in relation to the individual.

2 Section 5

Insert:

credit information file has the same meaning as in the Privacy Act

1988.

3 Section 5

Insert:

credit reporting agency has the same meaning as in the Privacy

Act 1988.

4 Section 5

Insert:

personal information has the same meaning as in the Privacy Act

1988.

5 Section 5

Insert:

verification request, in relation to an individual, means a request

made by a reporting entity under paragraph 35A(1)(b) for an

assessment in relation to the individual.

6 After Division 5 of Part 2

Insert:

Verification of identity Schedule 3

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

Division 5A--Use and disclosure of personal information

for the purposes of verifying an individual's

identity

35A Reporting entities may disclose certain personal information to

credit reporting agencies for identity verification

purposes

(1) A reporting entity may, to assist in verifying the identity of an

individual for the purposes of this Act, the regulations or the

AML/CTF Rules:

(a) disclose any or all of the following personal information to a

credit reporting agency for the purposes of making a request

referred to in paragraph (b):

(i) the individual's name;

(ii) the individual's residential address;

(iii) the individual's date of birth; and

(b) request the credit reporting agency to provide an assessment

of whether the personal information so disclosed matches (in

whole or part) personal information contained in a credit

information file in the possession or control of the credit

reporting agency.

(2) A reporting entity must not make a verification request in relation

to an individual unless, before making the request:

(a) the individual was given information about:

(i) the reasons for making the request; and

(ii) the personal information about the individual that may

be disclosed to the credit reporting agency; and

(iii) the fact that the reporting entity may request the credit

reporting agency to provide an assessment of whether

the personal information matches (in whole or part)

personal information contained in a credit information

file in the possession or control of the credit reporting

agency; and

(iv) the fact that the credit reporting agency may prepare and

provide to the reporting entity such an assessment; and

(v) the fact that the credit reporting agency may use the

personal information about the individual, and the

Schedule 3 Verification of identity

46 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

names, residential addresses and dates of birth contained

in credit information files of other individuals, for the

purpose of preparing such an assessment; and

(b) the individual expressly agreed to the making of the request

and the disclosure of the personal information; and

individual was made available to the individual.

(3) A disclosure of personal information under paragraph (1)(a) is

taken to be authorised by law for the purposes of paragraph 2.1(g)

of National Privacy Principle 2 in Schedule 3 to the Privacy Act

1988.

35B Credit reporting agencies may use and disclose certain personal

information for identity verification purposes

(1) A credit reporting agency that receives a verification request from

a reporting entity in relation to an individual may:

(a) prepare and provide to the reporting entity an assessment in

accordance with this section of whether any or all of the

following personal information matches (in whole or part)

personal information contained in a credit information file in

the possession or control of the credit reporting agency:

(i) the individual's name;

(ii) the individual's residential address;

(iii) the individual's date of birth; and

(b) use the personal information about the individual, and the

names, residential addresses and dates of birth contained in

credit information files of other individuals, for the purpose

of preparing the assessment.

(2) An assessment provided under subsection (1) to a reporting entity:

(a) must be an overall assessment of the extent of the match

between the personal information disclosed by the reporting

entity and personal information contained in a credit

information file in the possession or control of the credit

reporting agency; and

(b) must not include separate assessments of the match between

particular categories of that personal information.

Verification of identity Schedule 3

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

(3) To the extent that providing an assessment in relation to an

individual involves a disclosure of personal information contained

in an individual's credit information file to a person, body or

agency other than the individual, the disclosure is taken to be

authorised by law for the purposes of paragraph 18K(1)(m) of the

Privacy Act 1988.

35C Reporting entities to notify inability to verify identity

(1) This section applies if:

(a) a reporting entity makes a verification request in relation to

an individual; and

(b) an assessment is provided in relation to the individual; and

individual, having regard to the assessment.

(2) The reporting entity must give a written notice to the individual:

(a) stating that the reporting entity is unable to verify the identity

of the individual having regard to the assessment; and

(b) specifying the name of the credit reporting agency that

provided the assessment; and

identity of the individual.

35D Verification information not to be included on credit

information file

(1) A credit reporting agency must not include on an individual's

credit information file personal information that relates to a

verification request or an assessment in relation to the individual.

(2) This section has effect despite subsection 18K(5) of the Privacy

Act 1988.

35E Retention of verification information--credit reporting agencies

(1) A credit reporting agency that receives a verification request in

relation to an individual must retain the following information for 7

years after the request was received:

(a) the name of the reporting entity that made the request;

(b) the date on which the request was made;

Schedule 3 Verification of identity

48 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

provided by the reporting entity to the credit reporting

agency;

(d) the date on which the credit reporting agency provided an

assessment (if any) in relation to the individual;

(e) such other information about the verification request as is

specified in the AML/CTF Rules.

(2) A credit reporting agency that retains information under

subsection (1) must delete the information at the end of the 7 year

period referred to in that subsection.

Civil penalty

(3) Subsections (1) and (2) are civil penalty provisions.

35F Retention of verification information--reporting entities

(1) A reporting entity that makes a verification request in relation to an

individual must make a record of the following;

(a) the name of the credit reporting agency to which the request

was made;

(b) the personal information about the individual that was

provided by the reporting entity to the credit reporting

agency;

agency in relation to the individual;

(d) such other information about the verification request as is

specified in the AML/CTF Rules.

(2) The reporting entity must retain the record, or a copy of the record,

until the end of the first 7 year period:

(a) that began at a time after the verification request was made;

and

(b) throughout the whole of which the reporting entity did not

provide any designated services to the individual.

(3) A reporting entity that retains a record, or a copy of a record, under

subsection (2) must delete the record at the end of the 7 year period

referred to in that subsection.

Verification of identity Schedule 3

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

Civil penalty

(4) Subsections (1), (2) and (3) are civil penalty provisions.

Designated business groups

(5)

If:

(a) a reporting entity is part of a designated business group; and

(b) such other conditions as are specified in the AML/CTF Rules

are satisfied;

the obligation imposed on the reporting entity by subsection (2) or

(3) may be discharged by any other member of the group.

35G Access to verification information

A credit reporting agency or a reporting entity in possession or

control of personal information, or other information of a kind

referred to in subsection 35E(1), that relates to a verification

request or an assessment in relation to an individual must take

reasonable steps to ensure that the individual can obtain access to

the information.

35H Unauthorised access to verification information--offence

(1) A person commits an offence if:

(a) the person obtains access to information; and

(b) the information is personal information that relates to a

verification request or an assessment in relation to an

individual.

Penalty: 300 penalty units.

(2) Subsection (1) does not apply if the access is obtained in

accordance with, or as otherwise authorised by, this Act or any

other law.

Note:

A defendant bears an evidential burden in relation to the matter in

subsection (2) (see subsection 13.3(3) of the Criminal Code).

35J Obtaining access to verification information by false

pretences--offence

A person commits an offence if:

Schedule 3 Verification of identity

50 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

(a) the person obtains access to information; and

(b) the information is personal information that relates to a

verification request or an assessment in relation to an

individual; and

Penalty: 300 penalty units.

35K Unauthorised use or disclosure of verification information--

offence

(1) A person commits an offence if:

(a) the person uses or discloses information; and

(b) the information is personal information that relates to a

verification request or an assessment in relation to an

individual.

Penalty: 300 penalty units.

(2) Subsection (1) does not apply if the use or disclosure is in

accordance with, or as otherwise authorised by, this Act or any

other law.

Note:

A defendant bears an evidential burden in relation to the matter in

subsection (2) (see subsection 13.3(3) of the Criminal Code).

35L Breach of requirement is an interference with privacy

A breach of a requirement of this Division in relation to an

individual constitutes:

(a) in the case of a breach by a credit reporting agency--an act

or practice involving an interference with the privacy of the

individual for the purposes of section 13 of the Privacy Act

1988; or

(b) in the case of a breach by a reporting entity--an act or

practice involving an interference with the privacy of the

individual for the purposes of section 13A of the Privacy Act

1988.

Note:

These acts or practices may be the subject of complaints under

section 36 of that Act.

7 Subsection 37(1)

Verification of identity Schedule 3

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

After "procedure", insert "or an identity verification procedure".

8 Subsection 37(2)

After "procedures", insert "or identity verification procedures".

9 Subsection 37(3)

After "procedure", insert "or an identity verification procedure".

10 At the end of section 37

Add:

(4) This section does not otherwise limit the operation of the principles

of agency for the purposes of this Act.

Privacy Act 1988

11 Subsection 6(1)

Insert:

authorised agent of a reporting entity means a person authorised to

act on behalf of the reporting entity as mentioned in section 37 of

the Anti-Money Laundering and Counter-Terrorism Financing Act

2006.

12 Subsection 6(1)

Insert:

reporting entity has the same meaning as in the Anti-Money

Laundering and Counter-Terrorism Financing Act 2006.

13 Subsection 6E(1A)

Omit "(within the meaning of the Anti-Money Laundering and

Counter-Terrorism Financing Act 2006)", substitute " or an authorised

agent of a reporting entity".

14 Subsection 6E(1A)

Omit "for the purpose of compliance with", substitute " for the purposes

of, or in connection with, activities relating to".

15 Section 13 (note)

Schedule 3 Verification of identity

52 Combating the Financing of People Smuggling and Other Measures Bill 2011 No.

, 2011

After "Note", insert "1".

16 At the end of section 13 (after the note)

Add:

Note 2:

A breach of a requirement of Division 5A of Part 2 of the Anti-Money

Laundering and Counter-Terrorism Financing Act 2006 by a credit

reporting agency is an interference with the privacy of an individual

and is covered by this section (see section 35L of that Act).

17 Subsection 13A(1) (note)

After "Note", insert "1".

18 At the end of subsection 13A(1)(after the note)

Add:

Note 2:

A breach of a requirement of Division 5A of Part 2 of the Anti-Money

Laundering and Counter-Terrorism Financing Act 2006 by a

reporting entity is an interference with the privacy of an individual and

is covered by this section (see section 35L of that Act).

19 Subsection 49(1)

Before "or a credit reporting offence", insert ", an AML/CTF

verification offence".

20 Subsection 49(4)

Insert:

AML/CTF verification offence (short for anti-money laundering

and counter-terrorism financing offence) means an offence against

section 35H, 35J or 35K of the Anti-Money Laundering and

Counter-Terrorism Financing Act 2006.

Amendment of the Financial Transaction Reports Act 1988 Schedule 4

Combating the Financing of People Smuggling and Other Measures Bill 2011 No. , 2011

Schedule 4--Amendment of the Financial

Transaction Reports Act 1988

1 After section 41

Insert:

41A Exemptions by the AUSTRAC CEO

(1) The AUSTRAC CEO may, by written instrument, exempt a

specified person from one or more specified provisions of this Act.

Note:

For specification by class, see the Acts Interpretation Act 1901.

(2) An exemption may apply:

(a)

unconditionally;

(b) subject to specified conditions.

(3) A person to whom a condition specified in an exemption applies

must comply with the condition.

(4) A copy of an exemption must be made available on AUSTRAC's

website.

(5) An instrument under subsection (1) is not a legislative instrument.

Commonwealth of Australia Bills

COMBATING THE FINANCING OF PEOPLE SMUGGLING AND OTHER MEASURES BILL 2011