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COMMONWEALTHAct
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s 17

Bearer negotiable instruments

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Part 2Customer due diligence
Division 6Pre‑commencement customers

17 Bearer negotiable instruments

(1)

A bearer negotiable instrument is an instrument that is one of the following that is payable to bearer:

(a)

a bill of exchange;

(b)

a cheque;

(c)

a promissory note;

(d)

a bearer bond;

(e)

a traveller’s cheque;

(f)

a money order, postal order or similar order;

(g)

a negotiable instrument not covered by any of the above paragraphs.

(2)

Without limiting subsection (1), an instrument is payable to bearer if the instrument:

(a)

is endorsed without restriction; or

(b)

does not express a payee; or

(c)

is payable to a fictitious person; or

(d)

is otherwise in such form that title to the instrument passes on delivery.

Schedule 8—Transfers of value and international value transfer services

Part 1—Transfers of value

Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006

1 Section 4

Omit “Electronic funds transfer instructions”, substitute “Transfers of value”.

2 Section 4

Omit “transferred money”, substitute “transferred value”.

3 Section 4

Omit “registrable designated remittance services”, substitute “registrable remittance services”.

4 Section 5 (definition of batched electronic funds transfer instruction)

Repeal the definition.

5 Section 5 (definition of beneficiary institution)

Repeal the definition, substitute:

beneficiary institution: see subsections 63A(5) to (8).

6 Section 5

Repeal the following definitions:

(a)

definition of complete payer information;

(b)

definition of designated remittance arrangement;

(c)

definition of electronic funds transfer instruction;

(d)

definition of funds transfer chain.

7 Section 5

Insert:

institution: see subsection 63A(12).

intermediary institution: see subsections 63A(9) and (10).

8 Section 5

Repeal the following definitions:

(a)

definition of multiple‑institution person‑to‑person electronic funds transfer instruction;

(b)

definition of multiple‑institution same‑person electronic funds transfer instruction;

(c)

definition of non‑financier.

9 Section 5 (definition of ordering institution)

Repeal the definition, substitute:

ordering institution: see subsections 63A(1) to (4).

10 Section 5

Repeal the following definitions:

(a)

definition of payee;

(b)

definition of payer.

11 Section 5 (definition of registrable designated remittance service)

Repeal the definition.

12 Section 5

Insert:

registrable remittance service means a designated service that:

(a)

is covered by item 29 or 30 of table 1 in section 6; and

(b)

is provided by a person (other than a financial institution or casino) at or through a permanent establishment of the person in Australia; and

(c)

does not involve a transfer of virtual assets; and

(d)

is not of a kind specified in the AML/CTF Rules.

13 Section 5

Repeal the following definitions:

(a)

definition of remittance arrangement;

(b)

definition of required transfer information;

(c)

definition of same‑institution person‑to‑person electronic funds transfer instruction;

(d)

definition of same‑institution same‑person electronic funds transfer instruction;

(e)

definition of tracing information.

14 Section 5

Insert:

transfer message, for a transfer of value, means a message that contains information relating to the content of the payer’s instruction for the transfer of value, but does not include a message of a kind specified in the AML/CTF Rules.

transfer of value means a transfer of money, virtual assets or property, but does not include:

(a)

a transfer of physical currency or other tangible property; or

(b)

a transfer of a kind specified in the AML/CTF Rules.

15 Section 5

Repeal the following definitions:

(a)

definition of transferor entity;

(b)

definition of ultimate transferee entity;

(c)

definition of unique reference number.

16 Section 5

Insert:

value transfer chain: see subsection 63A(11).

17 Subsection 6(2) (table items 29 to 32)

Repeal the items, substitute:

29

in the capacity of ordering institution, accepting an instruction for the transfer of value on behalf of a payer

the payer

30

in the capacity of beneficiary institution, in relation to a transfer of value, making the transferred value available to a payee

the payee

31

in the capacity of intermediary institution, passing on a transfer message for a transfer of value in a value transfer chain to another intermediary institution or to the beneficiary institution

the ordering institution or intermediary institution from which the transfer message is received (as the case may be)

18 Subsection 6(2) (table item 32A, column headed “Provision of a designated service”, paragraph (a))

Omit “31 or 32”, substitute “29 or 30”.

19 Subsection 6(2) (table item 32A, column headed “Provision of a designated service”, paragraph (b))

Omit “a non‑financier”, substitute “not a financial institution”.

20 Sections 8 to 10

Repeal the sections.

21 Part 5 (heading)

Repeal the heading, substitute:

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