Australia: Australian Transaction Reports and Analysis Centre (AUSTRAC)
| Date | 01 January 1996 |
| Published date | 01 January 1996 |
| DOI | https://doi.org/10.1108/eb025729 |
| Pages | 306-307 |
| Author | Paul Latimer |
| Subject Matter | Accounting & finance |
Journal of Financial Crime — Vol. 3 No. 3 — International
Australia: Australian Transaction Reports and Analysis
Centre (AUSTRAC)
Paul Latimer
Australia's Financial Transaction Reports Act 1988
(Cth) set up reporting requirements designed inter
alia to identify the money trail of the proceeds of
criminal activities and tax evasion. It targets the
cash economy, which has always provided scope
for tax evasion and the financing and concealing of
criminal activity, domestically and internationally.
The Act was passed as a result of the findings of
two Royal Commissions in the 1980s which found
evidence of money laundering and the use of false-
name accounts with financial institutions. A
number of laws were passed in 1987 attacking
criminal activity through the prevention and detec-
tion of offences connected with the cash economy.
The Financial Transaction Reports Act requires
a 'cash dealer' to report a 'significant cash trans-
action' to the Australian Transaction Reports and
Analysis Centre (AUSTRAC) within the 'reporting
period' of 15 days (for Australian currency) and
the end of the next day if the transaction involves
foreign currency. Cash dealers include banks,
building societies, credit unions and stockbrokers.
A significant cash transaction is a transaction
involving the physical transfer of coin or paper
money of not less than AUS$10,000 (approxima-
tely $US7,500) (or AUS$5,000 if the transaction
involves an international transfer of currency into
or out of Australia).
Information supplied to AUSTRAC is made
available by controlled computer access to 16 Fed-
eral and State law enforcement agencies such as
the National Crime Authority, Customs, the Aus-
tralian Taxation Office and the Australian Securi-
ties Commission.
In a recent newsletter, AUSTRAC illustrated
how its information has contributed to Australia's
fight against economic crime:
— Financial Transaction Reports and further
analysis of AUSTRAC data triggered an investi-
gation that led to the uncovering of a fraud
involving more than $US40m telegraphically
transferred to Australia. Two people were
charged with money laundering in Australia,
and arrests were also made in the US and
China;
— a drug dealer was convicted after suspicious
financial activity was reported to AUSTRAC;
— a number of individuals have been convicted in
relation to a multi-million dollar fraud on a
major bank, and
— cash dealers have requested AUSTRAC to keep
them informed as to outcomes of reporting sus-
pect transactions involving Social Security pay-
ments (such as pensions). Charges continue to
be laid under the Financial Transaction Reports
Page 306
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