Checking the Cash

November 1993

ISBN 0 642 19889 6

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View the report as a single document - (PDF format) - 304 KB

View the report as separate downloadable parts:

TABLE OF CONTENTS - (PDF format)

Chapter 1: Introduction - (PDF format)
1987 Report
Government Response
Focus upon major crime
Commencement of the legislation
Further Review of the Act
Conduct of the inquiry
Public hearings

Chapter 2: Financial Transaction Reports Act 1988 - (PDF format)
Overview of the FTR Act
Requirements of the FTR Act
Wire transfers

Chapter 3: AUSTRAC - (PDF format)
The organisation
TRAP and TRAQ databases
AUSTRAC analytical operations
The AAU
Caution needed in AUSTRAC's work
How AUSTRAC's clients use AUSTRAC's databases
AUSTRAC participation in bilateral law enforcement and revenue projects
Criticism that AUSTRAC is exceeding ist statutory functions
AUSTRAC involvement in NCA task forces
Need to stay within the statute
Recommendation 1
Collecting and analysing

Chapter 4: Significant Cash Transaction Reports - (PDF format)
Statutory requirements
Number of reports lodged
Table 4.1 Total reports to 31 March 1993
Table 4.2 Reports lodged to 31 March 1993
How is the data used by law enforcement agencies?
Methods of delivery of cash transaction report data
Cost of reporting
Table 4.3 Annual operating cost
Table 4.4 Compliance costs
Erroneous Data
Table 4.5 Reports deleted from AUSTRAC database
Civil liberties issues
Proposals for reform
The importance of containing costs
The committee's view
Recommendations 2 and 3

Chapter 5: Suspect Transaction Reports - (PDF format)
Introduction
Statutory requirements
Reasonable suspicion test
Number of reports lodged
Table 5.1 Total number of suspect transaction reports
Table 5.2 Breakup of number of sustpect reports
How is the data used by law enforcement agencies?
Table 5.3 Total of tax recoveries
Table 5.4 ATO performance on state basis
The Blockey report
Scope of the obligation to report suspect transactions
Grounds for suspicion - cash transactions
Table 5.4
Grounds for suspicion - non-cash transactions
Grounds for suspicion - credit applications and reviews
Proposed modifications to section 16
The Committee's conclusions on the scope of section 16
Recommendation 4

Chapter 6: Account Opening Procedures - (PDF format)
Introduction
Initial requirements for the opening of accounts
Amendment of the account opening procedures after commencement
The evidence received on the cost of the account opening procedures
Suggestions for an alternative system of account opening
Recommendations 5 and 6

Chapter 7: Privacy and Civil Liberties Issues- (PDF format)
Introduction
AUSTRAC's functions
Investigations and intelligence gathering
AUSTRAC and the IPPs
AUSTRAC security procedures
Access to FTR Information
Table 7.1 Officers having access to database
TAble 7.2 AUSTRAC data on searches
Nubmer of ATO officers with access to FTR data
Table 7.3 Number of officers with online access to FTR data?
Recommendation 7
Civil liberties representation on advisory committees
Recommendations 8 and 9
Deletion of data
Recommendation 10

Chapter 8: Access to the AUSTRAC Database - (PDF format)
Introduction
Reports relating to DSS fraud
Administrative inefficiency of existing procedures
Evidence from DSS
Privacy concerns
Recommendation 11
Operation quit
Role of state and territory revenue authorities
Security of the information
State and territory legislation for reporting
Suspect transactions
Recommendation 12

Chapter 9: Achieving the Objectives of the Legislation - (PDF format)
Introduction
The objectives
The criminal environment
Loopholes
The role of financial institutions
Early days
Conclusion
The place of FTR data in investigations
Recommendation 13
Evidence of intelligence?
Results on suspect transaction reports
Taxation revenue results
Recommendation 14
Interation of AUSTRAC with law enforcement agencies
International obligations
Conclusion

Chapter 10: Legal Effectiveness and Legal Issues - (PDF format)
Introduction
Definition of account
Meaning of transaction
Recommendation 15
Tellers as witnesses
Recommendation 16
Structuring
Recommendation 17
Import/Export provisions
Recommendation 18
Gold Bullion
Recommendation 19
Administrative review and FOI
Recommendation 20
Freedom of information
Recommendation 21

Chapter 11: Solicitors as Cash Dealers - (PDF format)
The NCA's position
The Attorney-General's Department Position
AUSTRAC's submission
Volume of transactions
Table 11.1 - reports lodged by cash dealer groups
1 July 90 - 30 June 1992
Table 11.2 - reports about cash dealer groups
1 July 90 - 30 June 1992
Table 11.2A - reports lodged about solicitors
1 July 90 - 30 June 1992
The proposed extension
The solicitor-client relationship
Legal provilege
Cash deposits made with solicitors
Trust accounts and audit
Deterrence
Suspect transactions
Recommendation 22
Increase in and extension of law enforcement
Powers
Futher inquiry by committee
Recommendation 23

Chapter 12: Cost Effectiveness - (PDF format)
Essence
Costs of AUSTRAC
Table 12.1 Total yearly costs
Table 12.2 Expenditure breakdown 1988/89 to 1992/93
Cash dealers - costs of compliance
Banks
Table 12.3 Costs of compliance 1 March 87 to December 91
Table 12.4 Estimated 1993 operating costs by component
Other cash dealers
Table 12.5 Compliance costs by legislative requirement
Account opening
Table 12.6 on-going compliance costs
Generally on compliance costs
Costs to user agencies
Revenue
Taxation receipts
Table 12.7 additional tax and penalties 1990/91 to 31 March 93
Other revenue
Expenditure and revenue summary
"The Intangibles"
For the cash dealers
User pays
Conclusion

Dissenting Report - Senator Spindler (PDF format)

APPENDICES

Appendix 1: Written submission release for publication - (PDF format)

Appendix2: Witnesses who appeared at public hearings - (PDF format)