The border cash reporting provisions of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the AML/CFT Act) came into effect on 16 October 2010. They replace the provisions of the Financial Transactions Reporting Act 1996 from that date.
The threshold value ($9,999.99) and details of the new "cash report" requirements for the border cash reporting provisions under the AML/CFT Act are prescribed by the new Anti-Money Laundering and Countering Financing of Terrorism (Cross-border Transportation of Cash) Regulations 2010 (AML Regulations) which also came into force on 16 October. Previously, the threshold values for the border cash provisions under the Financial Transactions Reporting Act 1996 were specified in the Financial Transactions Reporting (Prescribed Amount) Regulations 1996. These 1996 regulations have now been revoked and replaced by the AML Regulations and the Financial Transactions Reporting (Prescribed Amount) Regulations 2010 (FTR Regulations).
The FTR Regulations re-enact the 1996 regulations unchanged in respect of the amount prescribed for Part 2 of the Financial Transactions Reporting Act 1996 (which requires financial institutions to verify the identity of the person conducting a financial transaction in certain circumstances).
Although the AML/CFT Act is in force, the key requirements of the Act will not come into effect until around November/December 2012 to give industry the opportunity to prepare for compliance with the Act. In addition to the border cash reporting provisions, the other provisions in effect under the AML/CFT Act are:
- the financial intelligence functions of the police;
- the definition, functions and powers of AML/CFT supervisors;
- the establishment and operation of an inter-agency AML/CFT coordination committee to ensure the consistent, effective and efficient operation of the regulatory system; and
- the activation of regulation and exemption-making powers.