Two public functions
AUSTRAC means Australian Transaction Reports and Analysis Centre. It is Australia’s anti-money laundering and counter-terrorism financing regulator and financial intelligence unit.
Its regulatory work concerns the duties of reporting entities. Its financial intelligence work uses reports and other information to support investigations.
Source: AUSTRAC: Introduction; Who we regulate; Financial intelligence.
- Regulator
Examines reporting entities’ AML/CTF systems and controls.
- Financial intelligence unit
Analyses financial reports and other information to support investigations.
AUSTRAC’s two functions
Regulation concerns business duties. Financial intelligence can support investigations. Neither role makes a business report proof of a criminal offence.
Separate evidence questions. An answer to one does not settle the others.
The business connection
A reporting entity has duties under Australian AML/CTF law. AUSTRAC examines whether these businesses have the required systems and controls.
AUSTRAC also gives businesses guidance. The guidance describes its interpretation of the law and its expectations.
Sources: AUSTRAC: Who we regulate; AUSTRAC: The difference between the Act, Rules and guidance.
From reports to information
AUSTRAC combines and analyses financial reports and information from other sources. This work can help law enforcement and national security investigations.
The agency’s intelligence role and a court’s decision about an offence are different functions. An unusual payment alone is not a court finding.
Sources: AUSTRAC: Financial intelligence; AUSTRAC: Closing limitations: courts interpret laws and determine contraventions.
A fictional example
A fictional practice identifies unusual payments and sends a suspicious matter report when the legal reporting test is met.
AUSTRAC can analyse that report with other information. The practice still has its own customer due diligence duties.
The suspicious matter report article gives the reporting test. The initial CDD article gives the customer checks.
Sources: AUSTRAC: Working with industry and partners; Federal Register of Legislation: Parts 2 and 3.