Chris Ellison (WA, Liberal Party, Minister for Justice and Customs) Share this | Hansard source

Having dealt with those other issues, I now seek leave to move government amendments (1) to (5) together.

Leave granted.

I move government amendments (1) to (5) on sheet RB308:

(1)    Schedule 1, page 3 (after line 25), after item 4, insert:

4A  After subsection 17FA(1)

Insert:

          (1A)   For the purposes of paragraph (1)(b), if:

                  (a)   an ADI (the first ADI) is acting on behalf of, or at the request of, another ADI (the second ADI); and

                  (b)   the second ADI is (whether or not as a result of one or more previous applications of this section) acting on behalf of, or at the request of, a person who is not an ADI;

then:

                  (c)   the first ADI is taken to be acting on behalf of that person; and

                  (d)   for the purposes of providing customer information in relation to that person, the first ADI is entitled to rely on the information provided by the second ADI.

(2)    Schedule 1, items 9 and 10, page 4 (lines 5 to 15), omit the items, substitute:

9  Subsection 17FA(3) (definition of customer information)

Repeal the definition, substitute:

customer information, in relation to an international funds transfer instruction transmitted out of Australia, means the following information about the ordering customer on whose behalf, or at whose request, an ADI sends the instruction:

        (a)   the ordering customer’s name;

       (b)   any one of the following:

                   (i)    the ordering customer’s full business or residential address (not being a post office box);

                  (ii)    if the ordering customer is an individual—the ordering customer’s date of birth and the country and the town, city or locality of the ordering customer’s birth;

                 (iii)    a unique identification number given to the ordering customer by the Commonwealth or an authority of the Commonwealth (for example, an Australian Business Number or an Australian Company Number);

                 (iv)    a unique identification number given to the ordering customer by a foreign government;

                  (v)    a unique identification number given to the ordering customer by the ADI that the ordering customer originally asked to send the instruction;

        (c)   either:

                   (i)    if the money is, or is to be, transferred from a single account held by the ordering customer with the ADI that the ordering customer originally asked to send the instruction—the account number; or

                  (ii)    in any other case—a unique reference number assigned to the instruction by the ADI that the ordering customer originally asked to send the instruction.

10  Subsection 17FA(3)

Insert:

unique reference number, for an international funds transfer instruction, means a combination of any or all of the following:

        (a)   letters;

       (b)   digits;

        (c)   characters;

       (d)   symbols;

which distinguishes the instruction in a way that, either:

        (e)   alone; or

        (f)   in conjunction with any other information in the instruction;

enables the ADI that the ordering customer originally asked to send the instruction to identify the ordering customer.

Examples:

        (a)   a combination of a BSB and account number;

       (b)   a reference number generated by the ADI that the ordering customer originally asked to send the instruction.

(3)    Schedule 1, page 5 (after line 1), after item 16, insert:

16A  Subsection 17FB(6) (subparagraph (b)(ii) of the definition of customer information)

Omit “date and place of birth”, substitute “date of birth and the country and the town, city or locality of the ordering customer’s birth”.

(4)    Schedule 1, item 17, page 5 (lines 2 to 5), omit the item, substitute:

17  Subsection 17FB(6) (subparagraph (c)(ii) of the definition of customer information)

Repeal the subparagraph, substitute:

        (ii)   a unique reference number assigned to the instruction by the ordering organisation.

(5)    Schedule 1, page 5 (after line 5), at the end of the Schedule, add:

18  Subsection 17FB(6)

Insert:

unique reference number, for an international funds transfer instruction, means a combination of any or all of the following:

        (a)   letters;

       (b)   digits;

        (c)   characters;

       (d)   symbols;

which distinguishes the instruction in a way that, either:

        (e)   alone; or

        (f)   in conjunction with any other information in the instruction;

enables the ordering organisation to identify the ordering customer.

Examples:

        (a)   a combination of a BSB and account number;

       (b)   a reference number generated by the ordering organisation.

19  At the end of Division 3A

Add:

17FC  Transmission into or out of Australia—intermediaries

This Division does not require the provision of customer information in relation to an international funds transfer instruction if:

        (a)   the instruction is transmitted by an ADI into or out of Australia; and

       (b)   the transmission into or out of Australia occurs in the course of, and for the purpose of, the transmission of the instruction by or on behalf of another financial organisation from a place outside Australia to another place that is also outside Australia.

20  Paragraph 29(4)(ba)

Omit “a cash dealer”, substitute “an ADI”.

21  Section 42A

After “3A”, insert “, 3AA”.

customer information, in relation to an international funds transfer instruction transmitted out of Australia, means the following information about the ordering customer on whose behalf, or at whose request, an ADI sends the instruction:

                   (i)    the ordering customer’s full business or residential address (not being a post office box);

                  (ii)    if the ordering customer is an individual—the ordering customer’s date of birth and the country and the town, city or locality of the ordering customer’s birth;

                 (iii)    a unique identification number given to the ordering customer by the Commonwealth or an authority of the Commonwealth (for example, an Australian Business Number or an Australian Company Number);

                 (iv)    a unique identification number given to the ordering customer by a foreign government;

                  (v)    a unique identification number given to the ordering customer by the ADI that the ordering customer originally asked to send the instruction;

                   (i)    if the money is, or is to be, transferred from a single account held by the ordering customer with the ADI that the ordering customer originally asked to send the instruction—the account number; or

                  (ii)    in any other case—a unique reference number assigned to the instruction by the ADI that the ordering customer originally asked to send the instruction.

unique reference number, for an international funds transfer instruction, means a combination of any or all of the following:

        (ii)   a unique reference number assigned to the instruction by the ordering organisation.

unique reference number, for an international funds transfer instruction, means a combination of any or all of the following:

This amendment will ensure that there is no gap in the legislation if an Australian bank which is asked to send a funds transfer instruction to a foreign bank is not able to deal directly with the foreign bank but has to deal through an intermediary bank in Australia. The amendment will provide that the intermediary bank is taken to be acting on behalf of the original customer and not the originating bank and will have the obligation to ensure that the relevant information accompanies the funds transfer instruction. The intermediary bank, however, will be able to act on any information it receives from the originating bank. It will not have to make its own inquiries of the original customer. That is a technical amendment and one which was identified during the drafting of this legislation.

The second amendment is the product of a suggestion by the Australian Bankers Association. This deals with the definition of customer information. This meets industry’s request to amend the definition of customer information in section 17FA(3) to better reflect the wording that will be used in section 67 of the Anti-Money Laundering and Counter-Terrorism Financing Bill. This amendment also inserts the definition of ‘unique reference number’ into section 17FA(3). This definition is consistent with that term as it will be defined in the AMLCTF Bill—that is the bill to be introduced.

Amendments (3) and (4) are again somewhat technical. Amendment (3) is the result of a request from AUSTRAC. It amends section 17FB(6) paragraph (b)(ii) to omit date and place of birth and substitute date of birth, the country and the town, city or locality of the ordering customer’s birth. Amendment (4) is another technical amendment that is consequential on government amendment (2). That amends section 17FB(6) paragraph (c)(ii) to now provide that a unique reference number assigned to the instruction by the ordering organisation be included in the international funds transfer instructions. The reference to the term ‘unique reference number’ is consistent with the definition of that term as it will appear in the Anti-Money Laundering and Counter-Terrorism Financing Bill.

The final government amendment deals with four aspects. The first inserts the definition of a unique reference number into section 17FB(6). This definition is consistent with the terms in which it will be defined in the AMLCTF Bill. That is a technical amendment recognised by government drafters. The second aspect of amendment (5) inserts a new section, 17FC. This amendment will ensure that the provision of complete customer information in an international funds transfer instruction is not required where that is transmitted from a place outside Australia to another place outside Australia and merely passes through Australia. This was a suggestion made by the Australian Bankers Association. It is a technical amendment and one which we think is a worthwhile suggestion. We have accordingly taken it up. The next aspect of amendment (5) deals with a drafting error. It amends section 29(4)(ba) that was inserted into the Financial Transaction Reports Act 1988 by schedule 9 of the Anti-Terrorism Bill (No. 2) 2005 to refer to an authorised deposit-taking institution rather than a cash dealer to ensure consistency with the amendment to restrict division 3A of part II of the FTR Act to authorised deposit-taking institutions only. That is a technical amendment and one which has been recommended by the drafters. The final aspect of amendment (5) comes from a suggestion by AUSTRAC—and that is to amend section 42A, amendment of schedules by regulations, to include a reference to schedule 3AA as inserted into the FTR Act by schedule 9 of the ATA, the Anti-Terrorism Act (No. 2) 2005. Again, this is a technical amendment. That deals with all of the government amendments that are proposed. I commend those amendments to the committee.