The AML/CTF reporting obligations that reach advisers, the Australian Privacy Principles in an advice practice, and the rules for giving tax (financial) advice.
Financial advice regulatory and legal obligations·2 min read·4 sections
✓Threshold transactions involve physical currency of $10,000 or more and must be reported within 10 business days (AML/CTF Act ss5, 43).
✓Suspicious matter reports: 24 hours for terrorism financing suspicions; generally 3 business days otherwise (s41(2)).
✓Tipping off is an offence where disclosure would or could reasonably be expected to prejudice an investigation (s123).
✓Health information is sensitive information (Privacy Act s6) and generally needs consent to collect (APP 3).
✓Only eligible data breaches, likely to cause serious harm, must be notified (s26WE).
✓Before sending personal information overseas, an APP entity must take reasonable steps (APP 8.1) and remains accountable (s16C).
✓Organisations cannot charge for making an access request; any charge for giving access must not be excessive (APP 12.8).
✓A tax (financial) advice service may only be given by a qualified tax relevant provider or a registered tax agent.
▸On this page · 4 sections
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Traps that cost marks
→The 24-hour period is for terrorism financing; money laundering suspicions get 3 business days.
→Transparency with clients is usually right, but here it can be an offence.
→Delayed verification is a narrow, rule-based exception, not a general 30-day grace period.
→Five years is a common overseas standard; Australia's AML/CTF Act says seven.
→Threshold reports do not depend on suspicion; they are automatic for physical currency of $10,000 or more.
→Information does not have to be 'sensitive' to be protected; APP 6 covers all personal information.
→Seventy-two hours is the EU GDPR rule; Australia uses a 30-day assessment and 'as soon as practicable' notice.
→Thirty days is the rule for government agencies; private organisations have 'a reasonable period'.
AML/CTF
Advice businesses that arrange designated services must identify customers, monitor for suspicious matters and report to AUSTRAC. Advisers must never tell a client a report was made, even if asked directly.
Privacy
•Collect only what is reasonably necessary (APP 3); notify the client (APP 5).
•Use and disclose only for the primary purpose or a permitted secondary purpose (APP 6).
•Destroy or de-identify information no longer needed, unless the law requires it to be kept (APP 11.2).
•Give access (APP 12) and correct (APP 13) on request.
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