On 27 October 2011, the Chief Executive Officer (CEO) of the Australian Transaction Reports and Analysis Centre (AUSTRAC) made Rules under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) to specify the matters the AUSTRAC CEO must take into account to cancel or suspend the registration of a registered alternative remittance dealer.
The AML/CTF Act requires remittance dealers to register with AUSTRAC and comply with financial transaction reporting obligations. The Act also gives AUSTRAC the power to cancel or suspend a remittance dealer’s registration where AUSTRAC considers they pose a money laundering or serious crime financing risk.
The Office of Best Practice Regulation (OBPR) considered the impact of the proposed Rules was likely to be more than minor or machinery in nature, so a Regulation Impact Statement (RIS) was required to be prepared. A RIS assessed as adequate by the OBPR was not prepared for the AUSTRAC CEO’s decision to introduce the Rules. Consequently, the OBPR assessed AUSTRAC as being non-compliant with the best practice regulation requirements. A Post-implementation Review will be required within one to two years from the implementation of these regulatory measures.
A RIS was subsequently prepared by AUSTRAC and assessed as adequate by the OBPR for the transparency stage.