Transition period for international funds transfer instructions reporting extended

16 February 2010

AUSTRAC has announced an extension to the transition period for businesses required to report international funds transfer instructions (IFTIs) under Australia's anti-money laundering legislation.

Under the staggered implementation timeline for the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), reporting entities had until 12 March 2010 to transition to new transaction reporting requirements.

Reporting entities that are cash dealers for the purposes of the Financial Transaction Reports Act 1988 (FTR Act) are required to report transactions to AUSTRAC in the FTR Act format until such time as they transition to the new report formats under the AML/CTF Act.

The extension has been granted because AUSTRAC identified some issues with the automated reporting system during the transition testing phase for IFTIs.

'Opportunities for enhancements to the new reporting forms for IFTIs have also been identified,' said Mr John Schmidt, AUSTRAC's Chief Executive Officer. 'These enhancements will better facilitate the automated transfer of information from financial institutions to AUSTRAC, reducing the compliance costs for industry.'

The extension means that full IFTI reporting under the AML/CTF Act will now be required to be implemented by 12 September 2010. AUSTRAC has stated that it will be working closely with industry to facilitate the necessary changes.

Businesses which have already transitioned to the new AML/CTF Act reporting format will be able to continue with this method. 

The transition date for Threshold Transaction Reports and Suspicious Matter Reports remains at 12 March 2010. 

For more information, please contact:

Curt Schatz | Partner
Mullins Lawyers
t +61 7 3224 0261
f +61 7 3224 0230
cschatz@mullinslaw.com.au