FINANCIAL TRANSACTION REPORTS (STATE PROVISIONS) (MISCELLANEOUS) AMENDMENT BILL

Second Reading

Adjourned debate on second reading.

(Continued from 6 February 2013.)

The Hon. S.G. WADE (16:13): I rise on behalf of the Liberal opposition to indicate our support for the Financial Transaction Reports (State Provisions) (Miscellaneous) Amendment Bill 2012. On 14 November, the Attorney-General, the Hon. John Rau, introduced the bill in the House of Assembly. The bill amends the Financial Transaction Reports (State Provisions) Act 1992. This act forms part of a national regime created by the commonwealth's Financial Transaction Reports Act 1988 to monitor suspicious financial transactions. The commonwealth's Anti-Money Laundering and Counter-Terrorism Financing Act 2006 extended the regime to require a broader range of entities to report these types of transactions to AUSTRAC.

The government's proposed amendments to the Financial Transaction Reports (State Provisions) Act clarify the obligations imposed by the act on cash dealers to report financial transactions to AUSTRAC. The amendments are intended to make the obligations under the Financial Transaction Reports (State Provisions) Act consistent with those imposed by the Anti-Money Laundering and Counter-Terrorism Financing Act.

The national scheme requires transactions relating to events against South Australian law to be reported to AUSTRAC; however, the national scheme does not enumerate which laws specifically. The Financial Transaction Reports (State Provisions) Act obliges cash dealers to report to AUSTRAC any transaction that they suspect could be relevant to an offence against any law and the Criminal Assets Confiscation Act 2005.

The bill proposes to oblige cash dealers to report a transaction where they suspect the transaction is relevant to an offence under the Serious and Organised Crime (Unexplained Wealth) Act 2009. The amendment to the Financial Transaction Reports (State Provisions) Act merely emphasises the requirement for cash dealers to report transactions to AUSTRAC that relate to offences against South Australian law.

Currently the state act provides that, once information has been reported to AUSTRAC, the Commissioner of Police or an investigating SAPOL officer may only request further information from the cash dealer where further information is narrowly defined to be information relevant to the investigation or prosecution of an offence, or would assist in enforcing the Criminal Assets Confiscation Act 2005.

The government suggests that, on the advice of SAPOL, this definition is unduly restrictive and the definition consistent with the commonwealth's Anti-Money Laundering and Counter Terrorism Financing Act 2006 is appropriate. The bill proposes to expand the scope of further information to include information which relates to any purpose, power or function of SAPOL under any act or law. It is intended that this amendment will give SAPOL greater power to undertake necessary investigations.

Further, the state act will be amended so that persons who become aware of information as a result of the regime will be prevented from disclosing the information unless the disclosure is in the course of their duties. We are advised that this is intended to cover forensic accountants, lawyers, police and officers of the DPP, and so on. The Liberal opposition commends this bill to the council and will be supporting it.

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (16:17): I do not believe any other members wish to contribute to the second reading of this bill, so I will sum up. I thank the Hon. Stephen Wade for his support and, as has been pointed out, the South Australian Financial Transaction Reports (State Provisions) Act, being amended by this bill, is part of a national regulatory regime set up by the commonwealth. The current South Australian legislation complements the commonwealth's Financial Transaction Reports Act. The national regime was established to monitor suspicious financial transactions and requires certain entities to report information to the commonwealth about suspicious financial transactions.

The amendment made by the bill will ensure that the South Australian police are able to obtain information from the commonwealth that is reported to them under both commonwealth acts. The South Australian police are also able to request further information from entities that have made reports to the commonwealth. These amendments ensure that the current reporting requirement contained within the South Australian Financial Transaction Reports (State Provisions) Act extends to those entities now covered by the commonwealth anti-money laundering laws. I thank members for their support and look forward to this bill being dealt with expeditiously during committee.

Bill read a second time.

Committee Stage

Bill taken through committee without amendment.

Third Reading

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (16:19): I move:

That this bill be now read a third time.

Bill read a third time and passed.