The Act and Rules
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 contains statutory duties and powers. The AML/CTF Rules give detail authorised by the Act.
Section 229 permits the AUSTRAC CEO to make Rules on matters that other Act provisions permit or require. The Rules are legislative instruments.
Sources: Federal Register of Legislation: Section 229; Federal Register of Legislation: Section 1-3.
AUSTRAC guidance
AUSTRAC guidance describes its interpretation of duties and its expectations for businesses. Courts decide how the law applies in legal proceedings.
Guidance includes examples and suggestions. These do not cover every possible case. The relevant legal conditions remain necessary.
Source: AUSTRAC: The difference between the Act, Rules and guidance; closing limitations.
- Act
Contains statutory duties and powers.
- Rules
Give detail authorised by the Act.
- AUSTRAC guidance
Explains AUSTRAC’s interpretation and expectations.
The three sources have different roles
Read each source for its role. Courts decide how the law applies in legal proceedings.
Separate evidence questions. An answer to one does not settle the others.
Expectations require attention
AUSTRAC distinguishes obligations, expectations and suggestions in its wording. It can ask a business to show how an alternative to an expectation meets its duties.
A business cannot assume that all AUSTRAC information is optional. The Act requires certain reporting entities to consider relevant AUSTRAC risk information.
Sources: AUSTRAC: Understanding the language we use; Federal Register of Legislation: Section 26C(3)(e).
A source comparison in practice
A fictional practice reads an example about a company customer. Its own customer has a different ownership structure.
The practice identifies the legal provision behind the example. It then examines the conditions that apply to its customer.
The initial CDD article gives the practical customer process. A copied example, without those conditions, does not settle the legal question.
Source: AUSTRAC: Support to use the guidance; closing limitations.