Post–implementation Review – Australian Transaction Reports and Analysis Centre (AUSTRAC)
On 27 October 2011 the then Government added Chapters 58 and 59 to the Anti-Money Laundering and Counter-Terrorism Financing Rules relating to the cancellation and suspension of remittance dealer registrations.
- Chapter 58 specifies the matters that the Australian Transaction Reports and Analysis Centre Chief Executive Officer (AUSTRAC CEO) must consider when deciding whether or not to cancel the registration of a person who provides registrable designated remittance services or registrable remittance network provider services.
- Chapter 59 specifies the grounds on which a person may be suspended from registration for a period of time as determined by the AUSTRAC CEO.
A Regulation Impact Statement (RIS) was required but not finalised before the decision to introduce the new chapters was taken. Consequently, AUSTRAC was found to be non-compliant with the Government’s RIS requirements and was required to undertake a Post-Implementation Review (PIR). The PIR found that the chapters have been effective in reducing the incidence and risk of misuse of remittance funds and serious crime related to remittance transactions, preventing high-risk remittance dealers from operating, or continuing to operate, as remittance dealers; and protecting the commercial significance of the remittance sector in Australia’s financial system. Law enforcement agencies see the chapters as being an important means to disrupt actual and potential criminal activity relating to money-laundering, terrorism-financing and people-smuggling in the remittance sector. Submissions from industry indicated that the Chapters have minimal impact on legitimate remitter service providers. The PIR was assessed as compliant by the Office of Best Practice Regulation. The PIR estimates the regulatory costs of the introduction of the two Chapters at zero.
