Explanatory note for consultation purposes

Transcription

1 Explanatory note for consultation purposes The Western Union account-based money transfer (ABMT) system enables authorised deposittaking institutions (ADIs), which are principally small banks, building societies and credit unions, to offer their customers the ability to undertake or receive remittance transfers through the Western Union platform. This includes transactions involving internet, over-the-counter or telephone banking. Through the ABMT service the ADI customer is able to use their account as the source or destination of funds transferred between Australia and overseas. These draft AML/CTF Rules specify foreign Western Union agents as ordering institutions (for instructions transmitted into Australia) and beneficiary institutions (for instructions transmitted out of Australia) and will ensure that international fund transfer instructions made using the ABMT service must be reported to AUSTRAC. It is noted that the Schedule to the Chapter is based upon the requirements specified in Chapter 17 (Reportable details for international funds transfer instructions under a designated remittance arrangement (items 3 and 4 in section 46)) of the AML/CTF Rules. New text is highlighted in bold. Calculation of regulatory costs These draft AML/CTF Rules may result in regulatory costs or savings if implemented. The Australian Government implemented an annual $1 billion red tape reduction target to which agencies such as AUSTRAC are required to contribute if regulatory action by an agency results in a cost reduction to businesses, community organisations or individuals. Any identified savings may also be used by an agency to offset regulatory action which may impose regulatory costs. If the regulatory action is likely to have a regulatory impact on business, community organisations or individuals, then agencies are required to undertake a Regulation Impact Statement which will examine the likely impacts of the regulatory proposals. Further details on the Australian Government policy are available at Cutting Red Tape ( AUSTRAC therefore requests that industry provide, in any submission on these draft amendments, an estimate of any savings or costs that may result from their implementation. It is preferred that such estimates use the Regulatory Burden Measure (RBM) as a basis for the calculation, as the RBM has been mandated by the Australian Government for use by agencies. Further details on the RBM are available at Commonwealth Regulatory Burden Measure ( Human Rights (Parliamentary Scrutiny) Act 2011 requirements The Human Rights (Parliamentary Scrutiny) Act 2011 requires that Statements of Compatibility must contain an assessment of whether the legislative instrument is compatible with the rights and freedoms recognised in the seven core international human rights treaties which Australia has ratified. It is considered that the draft amendments are compatible with the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights in subsection 3(1) of the Human Rights (Parliamentary Scrutiny) Act 2011.

2 Hu Draft AML/CTF Rules relating to Western Union account-based money transfer systems 1. These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for the definition of ordering institution and beneficiary institution in subparagraphs 8(1)(v), 8(1)(v), 9(1)(v) and 9(1)(v) of the AML/CTF Act and paragraph 45(3) of that Act. Instructions transmitted into Australia 2. For the purposes of subparagraphs 8(1)(v) and 9(1)(v), the following person is specified to be an ordering institution: (1) a non-financier when: the non-financier accepts an instruction from a payer to transfer money controlled by the payer to a payee; the instruction is accepted through a permanent establishment of the nonfinancier in a foreign country; the instruction is accepted on the basis that the transferred money will be made available to the payee as a result of the instruction being transmitted into Australia via the Western Union Money Transfer Service; and the transferred money is to be, or is, only made available to the payee at or through a permanent establishment of a beneficiary institution in Australia in circumstances where: the beneficiary institution has a contractual arrangement with Western Union to receive the transmitted instruction; and will make the money available to the payee. Instructions transmitted out of Australia 3. For the purposes of subparagraphs 8(1)(v) and 9(1)(v), the following person is specified to be a beneficiary institution (1) a non-financier in a foreign country when: the payer, through the permanent establishment of the ordering institution in Australia, instructs that ordering institution to transfer money controlled by the payer to a payee in the foreign country; and the ordering institution, which has a contractual arrangement with Western Union to accept such instructions, transmits the instructions out of Australia via the Western Union Money Transfer Service to the non-financier; and

3 the non-financier, through a permanent establishment of the non-financier in the foreign country, will make, or makes, the money available to the payee. 4. If either of the following are applicable: (1) an International Funds Transfer Instruction is accepted by a non-financier who because of the operation of paragraph 2 is an ordering institution; or (2) money transferred as a result of an International Funds Transfer Instruction is to be or is made available to the payee at or through a permanent establishment of a nonfinancier who because of the operation of paragraph 3 is a beneficiary institution; then, for the purposes of paragraph 45(3) of the AML/CTF Act, the information contained in the Schedule to these Rules is specified. 5. In this Chapter: (1) Western Union means the Western Union Company, a Delaware USA Corporation, Internal Revenue Service Employer Identification Number , with its principal executive offices situated at East Belford Avenue, Englewood, Colorado 80112, USA, listed on The New York Stock Exchange, and any subsidiary of it; (2) Western Union Money Transfer Service means the international remittance service for retail consumer transactions, branded Western Union Money Transfer Service.

4 Schedule Reportable details for international funds transfer instructions account-based money transfers Instructions transmitted out of Australia 1 For the purposes of paragraph 4, a report about an international funds transfer instruction (the instruction) must contain: (1) if the transferor entity is an individual: (h) (j) the transferor entity s full name; any other name used by the transferor entity, if the transferor entity s date of birth; the transferor entity s full residential address (not being a post box address); the transferor entity s postal address, if different from subparagraph 1 (1), if the transferor entity s telephone number, if the transferor entity s address, if the transferor entity s occupation, business or principal activity and ABN, if the customer s bank, building society or credit union (whichever applicable) account number; the identification number assigned to the transferor entity, if applicable; (2) if the transferor entity is a non-individual: the name of the transferor entity and any business name under which the transferor entity is operating; a description of the legal form of the transferor entity and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company); the business or principal activity of the transferor entity, if the full address (not being a post box address) of the transferor entity at which the entity carries on business, or its principal place of business; the transferor entity s postal address, if different from subparagraph 1 (2), if where the transferor entity has an ACN or ARBN that number; where the transferor entity has an ABN that number;

5 (h) (j) (k) the transferor entity s telephone number, if the transferor entity s address, if the customer s bank, building society or credit union (whichever applicable) account number; the identification number assigned to the transferor entity, if applicable; (3) the identifier (if applicable), and/or the name and address (not being a post box address) of a non-financier (sender) that accepts the instruction from the transferor entity, for the transfer of money under the designated remittance arrangement; (4) the date on which the non-financier accepts the instruction from the transferor entity; (5) the name and address (not being a post box address) of the person at which money is accepted from the transferor entity, if different from subparagraph 1 (3); (6) the number of the transferor entity s account held with the person which accepts the instruction from the transferor entity, if applicable; (7) where a person (other than the person referred to in subparagraph 1 (3)) transmits the instruction for the transfer of money under the designated remittance arrangement (transmitter): if the transmitter is an individual: (iii) (iv) the transmitter s full name; any other name used by the transmitter, if the transmitter s date of birth, if the transmitter s address (not being a post box address); (v) the transmitter s postal address, if different from subparagraph 1 (7)(iv), if the transmitter s telephone number, if the transmitter s address, if (viii) the transmitter s occupation, business or principal activity, if if the transmitter is a non-individual: the name of the transmitter and any business name under which the transmitter is operating; a description of the legal form of the transmitter and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company);

6 (iii) (iv) the business or principal activity of the transmitter, if the address (not being a post box address) of the transmitter at which the transmitter carries on business, or its principal place of business; (v) the transmitter s postal address, if different from subparagraph 1 (7)(iv), if where the transmitter has an ACN or ARBN that number; where the transmitter has an ABN that number; (viii) the transmitter s telephone number, if (ix) the transmitter s address, if (8) the name and address of the person in the foreign country to which the sender and/or transmitter sent the instruction for the transfer of money; (9) the identifier (if applicable), and/or the name and address of a person (disbursing entity) who arranges for the money to be made available or at which the money is, or is to be, made available to the ultimate transferee entity; (10) the date on which the money becomes accessible for the disbursing entity to make available to the ultimate transferee entity, if (11) if the ultimate transferee entity is an individual, the ultimate transferee entity s: full name; date of birth, if address (not being a post box address); postal address, if different from subparagraph 1 (11), if telephone number, if address, if (12) if the ultimate transferee entity is a non-individual: the name of the ultimate transferee entity and any business name under which the ultimate transferee entity is operating; a description of the legal form of the ultimate transferee entity and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company); the business or principal activity of the ultimate transferee entity, if the address (not being a post box address) of the ultimate transferee entity at which it carries on business, or its principal place of business;

7 the ultimate transferee entity s postal address if different from subparagraph 1 (12), if the ultimate transferee entity s telephone number, if the ultimate transferee entity s address, if (13) the amount referred to in the instruction; the currency of the amount referred to in the instruction; (14) if money is to be made available to the ultimate transferee entity by a person in a foreign country depositing or arranging for the money to be deposited into an account held by the ultimate transferee entity with that person, whether or not held jointly with any other person or persons: the account number of that account, if applicable; the name in which the account is held, if applicable; and the name and location of the institution at which the account is held; (15) any reference number allocated by the non-financier to the instruction; (16) any information given in the instruction about the reason for transferring the money. Instructions transmitted into Australia 2 For the purposes of paragraph 3, a report about an international funds transfer instruction (the instruction) must contain: (1) if the transferor entity is an individual: (h) the transferor entity s name; any other name used by the transferor entity, if the transferor entity s date of birth, if the transferor entity s address (not being a post box address); the transferor entity s postal address, if different from subparagraph 2(1), if the transferor entity s telephone number, if the transferor entity s address, if the transferor entity s occupation, business or principal activity, if

8 (2) if the transferor entity is a non-individual: the name of the transferor entity and any business name under which the transferor entity is operating; a description of the legal form of the transferor entity and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company); the business or principal activity of the transferor entity, if the address (not being a post box address) of the transferor entity at which it carries on business, or its principal place of business; the transferor entity s postal address, if different from subparagraph 2(2), if the transferor entity s telephone number, if the transferor entity s address, if (3) for a person in a foreign country who accepts the instruction from the transferor entity for the transfer of money (foreign entity): if the foreign entity is an individual: (iii) (iv) (v) the foreign entity s full name; any other name used by the foreign entity, if the foreign entity s date of birth, if the foreign entity s address (not being a post box address); the foreign entity s postal address, if different from subparagraph 2(3)(iv), if the foreign entity s telephone number, if the foreign entity s address, if (viii) the foreign entity s occupation, business or principal activity, if if the foreign entity is a non-individual: (iii) the name of the foreign entity and any business name under which the foreign entity is operating; a description of the legal form of the foreign entity and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company); the business or principal activity of the foreign entity, if

9 (iv) (v) the address (not being a post box address) of the foreign entity at which it carries on business, or its principal place of business; the foreign entity s postal address, if different from subparagraph 2(3)(iv), if the foreign entity s telephone number, if the foreign entity s address, if (4) the date on which the foreign entity accepts the instruction from the transferor entity, if (5) the identifier (if applicable), and/or the name and address (not being a post box address) of the foreign entity at which it accepts the instruction from the transferor entity, if applicable and (6) the number of the transferor entity s account held with the foreign entity which accepts the instruction from the transferor entity, if applicable; (7) where a person (other than the foreign entity) transmits the instruction for the transfer of money under the designated remittance arrangement (transmitter): if the transmitter is an individual: (iii) (iv) (v) the transmitter s full name, if any other name used by the transmitter, if the transmitter s date of birth, if the transmitter s address (not being a post box address), if the transmitter s postal address, if different from subparagraph 2(7)(iv), if the transmitter s telephone number, if the transmitter s address, if (viii) the transmitter s occupation, business or principal activity, if if the transmitter is a non-individual: (iii) the name of the transmitter and any business name under which the transmitter is operating, if a description of the legal form of the transmitter and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company); the business or principal activity of the transmitter, if

10 (iv) (v) the address (not being a post box address) of the transmitter at which it carries on business, or its principal place of business, if the transmitter s postal address, if different from subparagraph 2(7)(iv), if the transmitter s telephone number, if the transmitter s address, if (8) the name and address of the entity in Australia to which the instruction for the transfer of money was sent by the transmitter; (9) the date on which the non-financier arranges for the money to be made available or makes or is to make the money available to the ultimate transferee entity; (10) the name and full address (not being a post box address) of the non-financier (receiver) who arranges for the money to be made available or that makes or is to make the money available to the ultimate transferee entity in Australia; (11) the identifier (if applicable), and/or the name and address (not being a post box address) of the person, if different from subparagraph 2(10), at which the money is made or is to be made available to the ultimate transferee entity in Australia; (12) if the ultimate transferee entity is an individual, the ultimate transferee entity s: full name; date of birth, if full residential address (not being a post box address), if postal address, if different from subparagraph 2(12), if telephone number, if address, if occupation, business or principal activity and ABN, if (13) if the ultimate transferee entity is a non-individual: the name of the ultimate transferee entity and any business name under which the ultimate transferee entity is operating; a description of the legal form of the ultimate transferee entity and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company); the business or principal activity of the ultimate transferee entity, if the full address (not being a post box address) of the ultimate transferee entity at which it carries on business, or its principal place of business, if

11 (h) the ultimate transferee entity s postal address, if different from subparagraph 2(13), if where the ultimate transferee entity has an ACN or ARBN that number; where the ultimate transferee entity has an ABN that number; the ultimate transferee entity s telephone number, if the ultimate transferee entity s address, if (14) the amount referred to in the instruction; the currency of the amount referred to in the instruction; (15) if money is to be made available to the ultimate transferee entity by a person in Australia depositing or arranging for the money to be deposited into an account held by the ultimate transferee entity with that person, whether or not held jointly with any other person or persons: the account number of that account, if applicable; the name in which the account is held, if applicable; and the name and location of the institution at which the account is held; (16) any reference number allocated by the reporting entity to the instruction; (17) any information given in the instruction about the reason for transferring the money. 3 A report under subsection 45(2) of the AML/CTF Act must contain the following details about the person completing the report: (1) Full name; (2) Job title or position; (3) Telephone number; and (4) address. 4 In this Schedule: (1) identifier means a Bank Identifier Code (BIC), a Bank-State-Branch identifying code (BSB) or Branch Registration Number (BRN) previously registered with AUSTRAC. Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to or call