International Law

Austrac issues Public Legal Interpretation on suspect transactions and suspicious matter reports

Austrac Public Legal Interpretation 6 deals with suspect transactions and suspicious matter reports.

The PLI sets out AUSTRAC?s views on the provisions of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and the Financial Transaction Reports Act 1988 (FTR Act) as they relate to:
? the obligation to report suspect transactions within the meaning of section 16 of the FTR Act
? the obligation to report suspicious matters within the meaning of section 41 of the AML/CTF Act
? the general prohibition on use of these reports as evidence.

The PLI discusses the ?Reasonable grounds to suspect? test with reference to decided cases.

It concludes that a cash dealer who suspects the relevant matters on reasonable grounds which are later found to be mistaken, has an obligation to report to AUSTRAC. Paragraph 16(5)(d) provides immunity from any action, suit or proceeding for mistakenly reporting matters.

Full post as published by Australian Regulatory Compliance Review on September 27, 2008 (boomark / email).