Philip Ruddock (Berowra, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and the Anti-Money Laundering and Counter-Terrorism Financing (Transitional Provisions and Consequential Amendments) Act 2006 received royal assent on 12 December 2006.

The primary purpose of the two acts was to ensure that Australia has a financial sector that is protected from abuse by those seeking to engage in criminal activity and terrorism.

Following the introduction of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2007 and the Anti-Money Laundering and Counter-Terrorism Financing (Transitional Provisions and Consequential Amendments) Bill 2006 the Senate Standing Committee on Legal and Constitutional Affairs and the Senate Standing Committee for the Scrutiny of Bills reported on the contents of the bills.

During his speech in reply the Minister for Justice and Customs, Senator the Hon. Chris Ellison, responded to those reports and indicated that he would introduce a bill this session to make some technical amendments to the legislation and to implement some of the recommendations of the committees.

The report of the Senate Standing Committee for the Scrutiny of Bills raised concerns about the application of absolute liability rather than strict liability to some elements of offences under sections 136, 137, 139, 140 and 141 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. The minister undertook to amend these sections to replace the application of absolute liability with strict liability. These amendments are made at items 41 to 47 of the bill.

In relation to recommendation 7 of the Senate Standing Committee on Legal and Constitutional Affairs the minister undertook to continue to work with industry groups and other stakeholders to resolve certain technical issues and, if necessary, to address these technicalities in the foreshadowed bill. Further consultation was undertaken and no amendments were considered necessary to resolve issues raised by the committee. Affected industry sectors were advised of the government’s view that the common law principles of agency apply throughout the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

Further consultation raised technical issues that are addressed in this bill including:

1. Reporting entities will gain additional rights to seek review of decisions made by the AUSTRAC CEO under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. This includes a right to a merits review by the Administrative Appeals Tribunal of decisions by the AUSTRAC CEO to appoint an external auditor to carry out a risk management audit under section 161, and decisions by the AUSTRAC CEO to give a remedial direction under section 191.

2. In addition the Administrative Decisions (Judicial Review) Act 1977 will be amended to remove the general exemption given to decisions under the AML/CTF Act from review under the ADJR Act and replace it with an exemption limited to decisions by the AUSTRAC CEO to apply to the Federal Court for a civil penalty order under section 176 and to the granting of an exemption from, or declaring a modification to, a requirement of the act under section 248. This amendment will ensure greater accountability for decisions by the AUSTRAC CEO under the AML/CTF Act.

3. ASIS is to be made a designated agency thereby granting ASIS officials access to AUSTRAC information to ensure that financial intelligence is available to counter the financing of terrorism. This brings ASIS into line with ASIO which is also a designated agency.

4. Amendments to the secrecy and access provisions of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 are to ensure national security and intelligence agencies which are designated agencies can fulfil their functions under their enabling legislation.

5. Minor amendments to the Commonwealth Electoral Act 1918 will ensure that a person who has an arrangement with a reporting entity to verify customer identity under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 will have access to the electoral roll equivalent to that which is currently provided for the purposes of the Financial Transaction Reports Act 1988.

6. Additional minor technical amendments are made to the Surveillance Devices Act 2004, the Inspector-General of Intelligence and Security Act 1986 and the Financial Transaction Reports Act 1988.

The amendments made by the bill will assist in ensuring the effective operation of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 to combat money laundering and terrorist financing.

I commend the bill to the House.

Debate (on motion by Mr Edwards) adjourned.