George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

The opposition supports the Financial Transaction Reports Amendment (Transitional Arrangements) Bill 2008. The bill arises in this way. Under the Financial Transaction Reports Act 1988, certain regulated businesses are required to report information about transactions to AUSTRAC, the Australian Transaction Reports and Analysis Centre. Those obligations will cease on 12 December this year, when updated measures begin under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006—one of the great achievements of the former Attorney-General, Mr Ruddock. There is, however, a 15-month grace period under the Anti-Money Laundering and Counter-Terrorism Financing Act to allow businesses to take reasonable steps to improve their systems in order to comply with the new obligations. New systems must be in place by 11 March 2010.

The Financial Transaction Reports Amendment (Transitional Arrangements) Bill fixes an unintended loophole that, during the period of grace, companies would not be required to report transactions after 12 December 2008 until their new systems were in place. The bill requires that reporting bodies continue reporting transactions under their old systems until their new systems are in place, thereby ensuring that AUSTRAC maintains full records during the transition period and that there is continuity of treatment during the transition period. The bill, of course, is therefore a corrective measure. It has the opposition’s support. May I commend the industry and the alertness of the public servant—who is perhaps sitting in the government advisers box at the moment—who spotted this loophole and has enabled the Senate now to repair it.

Jan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | Link to this | Hansard source

I thank senators for their contributions to the debate on this bill. The Financial Transaction Reports Amendment (Transitional Arrangements) Bill 2008 contains several amendments to ensure that businesses can continue to report to the Australian Transaction Reports and Analysis Centre, otherwise known as AUSTRAC, as they work toward compliance with the new reporting obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

It is important to understand that the amendments will not create any duplication in reporting obligations, as Australia’s specialist financial intelligence unit, AUSTRAC, collects and analyses financial transaction reports and currently receives around 69,000 reports in relation to suspicious transactions and other transactions per day. AUSTRAC provides assistance to law enforcement and national security agencies in identifying and investigating criminal and terrorist enterprises.

In summary, the bill contains several amendments to the Financial Transaction Reports Act 1988 which will assist businesses to make the transition from regulation under that act to regulation under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. By passing this bill, the Australian government will ensure that AUSTRAC’s intelligence-gathering role is not hindered during the transitional period. The bill preserves the integrity of the reporting regime and supports the work of AUSTRAC. This government is committed to combating money-laundering and terrorism financing. I commend the bill to the chamber.

Question agreed to.

Bill read a second time.