Don Farrell (SA, Australian Labor Party, Parliamentary Secretary for Sustainability and Urban Water) Share this | Hansard source

I table a supplementary explanatory memorandum relating to the government amendment to be moved to this bill. The memorandum was circulated in the chamber on 10 May 2011. I move:

(1)   Schedule 1, page 7 (line 20), after item 18, insert:

18A After subsection 49(1)

  Insert:

(1A)   A person (the issuer) must not give a notice under subsection (1) to another person (the recipient) unless the issuer reasonably believes that the recipient has knowledge of the information, or possession or control of the document, that is specified in the notice.

(1B)   The period specified in the notice for giving the information or document must be at least 14 days after the notice is given unless:

(a)   the recipient is the reporting entity who communicated information to the AUSTRAC CEO under section 41, 43 or 45; or

(b)   both of the following apply:

  (i)   the issuer considers that specifying a shorter period is necessary;

  (ii)   the shorter period specified is reasonable in the circumstances.

It is proposed to move two government amendments to address important recommendations made by the Senate Committee for the Scrutiny of Bills in its report on the bill dated 22 March 2011. The bill amends subsection 49 of the AML/CTF Act to extend the power to obtain further information in relation to the report made to AUSTRAC beyond the reporting entity to any other person. This change to the AML/CTF Act is strongly supported by AUSTRAC and law enforcement agencies, as the extended information-gathering power will assist with preliminary investigations into serious and organised crime.

The first amendment relates to the requirement for reasonable belief. It provides that a notice requesting further information or documents may only be issued if there are reasonable grounds to believe that the recipient has knowledge of the information or possession or control of the document sought. This government amendment will ensure that the person is not subject to this coercive power without proper justification, and it is in keeping with broad government policy and the recommendation of the Senate Committee for the Scrutiny of Bills.

The second proposed amendment provides a minimum 14-day compliance period where the recipient of the notice is not the reporting entity who initially communicated the report to AUSTRAC. However, the amendment allows a period of fewer than 14 days where it is necessary and reasonable in the circumstances. The Senate Committee for the Scrutiny of Bills queried whether a 14-day period should be applicable, as this is generally considered the minimum time in which the response can reasonably be expected. The proposed amendment addresses this issue and ensures that the minimum time frames are provided in the legislation. The ability to require a shorter time frame recognises that AUSTRAC and law enforcement agencies will often require prompt responses so that they can effectively carry out their investigations.