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s 5A

Precious metal, precious stones and precious products

In force
Part 2Customer due diligence
Division 6Pre‑commencement customers

5A Precious metal, precious stones and precious products

Precious metal

(1)

Each of the following substances is a precious metal:

(a)

gold;

(b)

silver;

(c)

platinum;

(d)

iridium;

(e)

osmium;

(f)

palladium;

(g)

rhodium;

(h)

ruthenium;

(i)

a substance prescribed by the AML/CTF Rules;

(j)

an alloy substance with at least 2% in weight of any of the substances mentioned in paragraphs (a) to (i).

(2)

For the purposes of subsection (1), it is immaterial whether the substance is in a manufactured or unmanufactured state.

Precious stones

(3)

A precious stone is a substance that:

(a)

has gem quality; and

(b)

has market‑recognised beauty, rarity and value.

(4)

For the purposes of subsection (3), it is immaterial whether the substance is natural, synthetic or reconstructed.

(5)

Without limiting subsection (3), each of the following substances is a kind of precious stone:

(a)

beryl;

(b)

corundum;

(c)

diamond;

(d)

garnet;

(e)

jadeite jade;

(f)

opal;

(g)

pearl;

(h)

topaz;

(i)

a substance prescribed by the AML/CTF Rules.

Precious products

(6)

A precious product is any of the following that is made up of, containing or having attached to it, any precious metal or precious stone, or both:

(a)

jewellery;

(b)

a watch;

(c)

an object of personal adornment not otherwise covered by paragraph (a) or (b);

(d)

an article of goldsmiths’ or silversmiths’ wares.

Examples:

A stainless steel watch with rubies set on the watch face, a platinum tie bar or a gold and pearl necklace.

(7)

In subsection (6):

goldsmiths’ or silversmiths’ wares include such articles as ornaments, tableware, smokers’ requisites and other articles of personal, household, office or religious use.

6 Subsection 6(3)

Repeal the subsection, substitute:

Table 2—Bullion and precious metals, stones and products

(3)

Table 2 is as follows:

Table 2—Bullion and precious metals, stones and products

Item

Provision of a designated service

Customer of the designated service

1

buying or selling bullion, where the buying or selling is in the course of carrying on a bullion‑dealing business

the buyer or the seller (as the case may be)

2

buying or selling one or more of the following items in the course of carrying on a business, where the purchase involves the transfer of physical currency or virtual assets (or a combination of physical currency and virtual assets) with a total value of not less than $10,000, whether the purchase is made in a single transaction or in several transactions that are linked or appear to be linked:

(a) precious metal;

(b) precious stones;

(c) precious products;

(d) any combination of any 2 or more of the items referred to in paragraphs (a) to (c)

the buyer or the seller (as the case may be)

Part 3—Professional services

Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006

7 Section 5 (definition of exempt legal practitioner service)

Repeal the definition.

8 Section 5

Insert:

express trust means a trust expressly and intentionally created in writing by a settlor but does not include a testamentary trust.

legal arrangement means:

(a)

an express trust; or

(b)

a partnership; or

(c)

a joint venture; or

(d)

an unincorporated association; or

(e)

an arrangement, including a foreign arrangement such as a fiducie, treuhand or fideicomiso, similar to an arrangement mentioned in any of the above paragraphs.

nominee shareholder, in relation to a body corporate or legal arrangement, means a person who:

(a)

holds shares or an interest in the body corporate or legal arrangement on behalf of another person (the nominator); and

(b)

exercises voting rights associated with the shares or interest according to the instructions of the nominator, or receives dividends on behalf of the nominator, or both.

9 Subsection 6(2) (table item 46, column headed “Provision of a designated service”, paragraph (b))

Repeal the paragraph, substitute:

(b)

the service is not specified in the AML/CTF Rules

10 Before subsection 6(6)

Insert:

Table 6—Professional services

(5B)

Table 6 is as follows:

Table 6—Professional services

Item

Provision of a designated service

Customer of the designated service

1

assisting a person in the planning or execution of a transaction, or otherwise acting for or on behalf of a person in a transaction, to sell, buy or otherwise transfer real estate, where:

(a) the service is provided in the course of carrying on a business; and

(b) the sale, purchase or other transfer is not pursuant to, or resulting from, an order of a court or tribunal

the person

2

assisting a person in the planning or execution of a transaction, or otherwise acting for or on behalf of a person in a transaction, to sell, buy or otherwise transfer a body corporate or legal arrangement, where:

(a) the service is provided in the course of carrying on a business; and

(b) the sale, purchase or other transfer is not pursuant to, or resulting from, an order of a court or tribunal

the person

3

receiving, holding and controlling (including disbursing) or managing a person’s:

(a) money; or

(b) accounts; or

(c) securities and securities accounts; or

(d) virtual assets; or

(e) other property;

as part of assisting the person in the planning or execution of a transaction, or otherwise acting for or on behalf of a person in a transaction, in the course of carrying on a business (other than in a circumstance covered by subsection (5C))

the person

4

assisting a person in organising, planning or executing a transaction, or otherwise acting for or on behalf of a person in a transaction, for equity or debt financing relating to:

(a) a body corporate (or proposed body corporate); or

(b) a legal arrangement (or proposed legal arrangement);

in the course of carrying on a business

the person

5

selling or transferring a shelf company, in the course of carrying on a business

the buyer or transferee

6

assisting a person to plan or execute, or otherwise acting on behalf of a person in, the creation or restructuring of:

(a) a body corporate (other than a corporation under the Corporations (Aboriginal and Torres Strait Islander) Act 2006); or

(b) a legal arrangement;

in the course of carrying on a business

the person and:

(a) if the body corporate is a company and the service is creating the company—the beneficial owners and directors of the company; or

(b) if the legal arrangement is an express trust and the service is creating the express trust—the trustee, settlor and beneficiaries of the trust

7

acting as, or arranging for another person to act as, any of the following, on behalf of a person (the nominator), in the course of carrying on a business:

(a) a director or secretary of a company;

(b) a power of attorney of a body corporate or legal arrangement;

(c) a partner in a partnership;

(d) a trustee of an express trust;

(e) a position in any other legal arrangement that is functionally equivalent to a position mentioned in any of the above paragraphs;

other than in a circumstance covered by subsection (5E)

the nominator

8

acting as, or arranging for another person to act as, a nominee shareholder of a body corporate or legal arrangement, on behalf of a person (the nominator), in the course of carrying on a business

the nominator

9

providing a registered office address or principal place of business address of a body corporate or legal arrangement, in the course of carrying on a business

the person to whom the service is provided

(5C)

For the purposes of item 3 of the table in subsection (5B), the circumstances are as follows:

(a)

the money, accounts, securities, securities accounts, virtual assets or other property being held or managed is payment by the person for the provision of goods or services by the business;

(b)

both:

(i)

the business does not provide any designated services other than the services referred to in item 3 of the table in subsection (5B); and

(ii)

the money, accounts, securities, securities accounts, virtual assets or other property being held or managed is for payments reasonably incidental to the provision by the business of a service that is not a designated service;

(c)

the money, accounts, securities, securities accounts, virtual assets or other property being held or managed is to be received or payable under an order of a court or tribunal;

(d)

the service provided by the business is the receipt or disbursement of a payment mentioned in subsection (5D);

(e)

the service is any other designated service;

(f)

a circumstance specified in the AML/CTF Rules.

Note:

An example of a circumstance to which paragraph (b) applies is fees paid to a barrister for representation in legal proceedings or property management services.

(5D)

For the purposes of paragraph (5C)(d), the payments are:

(a)

a payment to or from any of the following:

(i)

a government body;

(ii)

a court or tribunal of the Commonwealth, a State, a Territory or a foreign country;

(iii)

a public international organisation;

(iv)

a person who is licensed under a law of the Commonwealth, a State or a Territory to provide insurance, including self‑insured licensees; or

(b)

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

(5E)

For the purposes of item 7 of the table in subsection (5B), the circumstances are:

(a)

acting, or arranging for another person to act, in a fiduciary capacity pursuant to, or as a result of, an order of a court or a tribunal; or

(b)

acting as the trustee of a regulated debtor’s estate (within the meaning of Schedule 2 to the Bankruptcy Act 1966); or

(c)

a circumstance specified in the AML/CTF Rules.

10A Before subsection 6(7)

Insert:

Services provided by barristers on instructions of a solicitor

(6B)

Despite anything in this section, a service is not a designated service if the service is provided by a person in the course of legal practice as a barrister on the instructions of a solicitor, if the instructions are given in connection with the provision of a designated service.

Part 4—Transitional provisions

11 Delayed application of certain provisions of this Act

(1)

The following provisions of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 do not apply, until 1 July 2026, to a reporting entity in its capacity as an entity that provides a designated service covered by item 2 of table 2, or an item of table 5 or 6, in section 6 of that Act:

(a)

Part 1A (which deals with AML/CTF programs);

(b)

Part 2 (which deals with customer due diligence);

(c)

Part 3 (which deals with reporting obligations);

(d)

Divisions 2 to 6 of Part 10 (which deal with record keeping).

(2)

Subject to anything else in this Act or in rules made under Schedule 12 to this Act (which deals with transitional rules), the remaining provisions of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 apply, on and after the commencement of this item, to such a reporting entity.

12 Application provision—timing of enrolment

(1)

This item applies to a person if:

(a)

the person provides, or commences to provide, a designated service covered by item 2 of table 2, or an item of table 5 or 6, in section 6 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 at any time before 1 July 2026; and

(b)

the person does not, as at that time, provide, or commence to provide, any other designated services.

(2)

Subsection 51B(1) of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 applies to the person, in relation to the designated service referred to in paragraph (1)(a) of this item, as if the reference in that subsection to 28 days after the day on which the person commences to provide the designated service were a reference to 29 July 2026.

Schedule 4—Legal professional privilege

Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006

1 Section 5

Insert:

legal professional privilege includes privilege under Division 1 of Part 3.10 of the Evidence Act 1995.

LPP form, in relation to information or a document, means a written notice that:

(a)

is in an approved form; and

(b)

specifies the basis on which the information or document is privileged from being given or produced on the ground of legal professional privilege; and

(c)

contains any other information required by the approved form; and

(d)

is accompanied by any documents required by the approved form.

2 After subsection 26Q(2)

Insert:

(2A)

If:

(a)

a person is given a notice under subsection (1) in relation to one or more documents; and

(b)

the person reasonably believes that the documents are privileged from being produced on the ground of legal professional privilege;

the person must give the AUSTRAC CEO an LPP form in relation to the documents within the period specified in the request.

Note:

For other provisions dealing with legal professional privilege, see sections 242 and 242A.

3 Subsection 26Q(3)

Repeal the subsection, substitute:

(3)

Subsections (2) and (2A) are civil penalty provisions.

4 Paragraph 41(2)(a)

After “applies”, insert “and paragraph (aa) of this subsection does not apply”.

5 After paragraph 41(2)(a)

Insert:

(aa)

if:

(i)

paragraph (1)(d), (e), (f), (i) or (j) applies; and

(ii)

the reporting entity reasonably believes that some (but not all) of the information required to be contained in the report may be privileged from being given on the ground of legal professional privilege; and

(iii)

the privilege, if it exists, belongs to a person other than the reporting entity;

5 business days after the day on which the reporting entity forms the relevant suspicion; or

6 After subsection 41(2)

Insert:

(2A)

Despite subsection (2), the reporting entity may refuse to give the AUSTRAC CEO a report about the matter if the reporting entity reasonably believes that all of the information comprising the grounds on which the reporting entity holds the relevant suspicion is privileged from being given on the ground of legal professional privilege.

Note:

For other provisions dealing with legal professional privilege, see sections 242 and 242A.

7 After paragraph 41(3)(a)

Insert:

(aa)

if the reporting entity reasonably believes that some (but not all) of the information required to be contained in the report about the matter is privileged from being given on the ground of legal professional privilege—be accompanied by an LPP form in relation to the information; and

8 At the end of subsection 41(3)

Add:

Note 3:

For other provisions dealing with legal professional privilege, see sections 242 and 242A.

9 After paragraph 43(3)(a)

Insert:

(aa)

if the reporting entity reasonably believes that information required to be contained in the report about the transaction is privileged from being given on the ground of legal professional privilege—be accompanied by an LPP form in relation to the information; and

10 At the end of subsection 43(3)

Add:

Note 3:

For other provisions dealing with legal professional privilege, see sections 242 and 242A.

11 Subsection 49(3)

Repeal the subsection, substitute:

(3)

Subsections (2) and (4) are civil penalty provisions.

Legal professional privilege

(4)

If:

(a)

a person is given a notice under subsection (1) in relation to information or a document; and

(b)

the person reasonably believes that the information or document is privileged from being given or produced on the ground of legal professional privilege;

the person must give the AUSTRAC CEO an LPP form in relation to the information or document within the period specified in the notice.

Note:

For other provisions dealing with legal professional privilege, see sections 242 and 242A.

12 Before paragraph 49B(5)(a)

Insert:

(aa)

subsection (6A);

13 After subsection 49B(6)

Insert:

Legal professional privilege

(6A)

If:

(a)

a person is given a notice under subsection (2) in relation to information or a document; and

(b)

the person reasonably believes that the information or document is privileged from being given or produced on the ground of legal professional privilege;

the person must give the AUSTRAC CEO an LPP form in relation to the information or document within the period specified in the notice.

Note:

For other provisions dealing with legal professional privilege, see sections 242 and 242A.

14 Subsection 49B(7)

Repeal the subsection, substitute:

(7)

Subsections (6) and (6A) are civil penalty provisions.

15 After paragraph 50(6)(a)

Insert:

(aa)

if the reporting entity reasonably believes that information relating to the matter is privileged from being given on the ground of legal professional privilege—be accompanied by an LPP form in relation to the information; and

16 Subsection 50(6) (note)

Omit “Note”, substitute “Note 1”.

17 At the end of subsection 50(6)

Add:

Note 2:

For other provisions dealing with legal professional privilege, see sections 242 and 242A.

18 At the end of section 75N

Add:

(3)

If:

(a)

a person is given a request under subsection (1) in relation to information; and

(b)

the person reasonably believes that the information is privileged from being given on the ground of legal professional privilege;

the person must give the AUSTRAC CEO an LPP form in relation to the information within the period specified in the request.

(4)

Subsection (3) is a civil penalty provision.

Note:

For other provisions dealing with legal professional privilege, see sections 242 and 242A.

19 At the end of section 76Q

Add:

(3)

If:

(a)

a person is given a request under subsection (1) in relation to information; and

(b)

the person reasonably believes that the information is privileged from being given on the ground of legal professional privilege;

the person must give the AUSTRAC CEO an LPP form in relation to the information within the period specified in the request.

(4)

Subsection (3) is a civil penalty provision.

Note 1:

For other provisions dealing with legal professional privilege, see sections 242 and 242A.

20 Subsection 167(4) (at the end of the heading)

Add “etc.”.

21 After paragraph 167(4)(a)

Insert:

(aa)

subsection (5);

(ab)

subsection (6);

22 At the end of section 167

Add:

Legal professional privilege

(5)

If:

(a)

a person is given a notice under subsection (2) in relation to information, a document or a copy of a document; and

(b)

the person reasonably believes that the information, document or copy is privileged from being given or produced on the ground of legal professional privilege;

the person must give the AUSTRAC CEO an LPP form in relation to the information, document or copy within the period specified in the notice.

(6)

Subsection (5) is a civil penalty provision.

Note:

For other provisions dealing with legal professional privilege, see sections 242 and 242A.

23 Subsection 184(4) (after paragraph (ae) of the definition of designated infringement notice provision)

Insert:

(af)

subsection 26Q(2A) (which deals with providing an LPP form in relation to certain further information requested);

24 Subsection 184(4) (after paragraph (f) of the definition of designated infringement notice provision)

Insert:

(fa)

subsection 49(4) (which deals with providing an LPP form in relation to information or documents requested);

25 Subsection 184(4) (after paragraph (fb) of the definition of designated infringement notice provision)

Insert:

(fc)

subsection 49B(6A) (which deals with providing an LPP form in relation to information or documents requested);

(fd)

subsection 50(4) (which deals with providing certain reports about a card issuer’s response, or lack of response to the AUSTRAC CEO);

(fe)

subsection 50(5) (which deals with providing certain reports about a card issuer’s response, or lack of response to the Commissioner of Taxation);

26 Subsection 184(4) (after paragraph (fh) of the definition of designated infringement notice provision)

Insert:

(fi)

subsection 75N(3) (which deals with providing an LPP form in relation to certain further information requested);

(fj)

subsection 76Q(3) (which deals with providing an LPP form in relation to certain further information requested);

27 At the end of subsection 184(4) (at the end of the definition of designated infringement notice provision)

Add:

; (i) subsection 167(5) (which deals with providing an LPP form in relation to certain information or documents to be provided to an authorised officer);

(j)

subsection 202(5) (which deals with reporting entities providing an LPP form in relation to certain information or documents requested by notice).

28 At the end of section 202

Add:

(5)

If:

(a)

a person is given a notice under subsection (2) in relation to information or a document; and

(b)

the person reasonably believes that the information or document is privileged from being given or produced on the ground of legal professional privilege;

the person must give the AUSTRAC CEO an LPP form in relation to the information or document within the period specified in the notice.

(6)

Subsection (5) is a civil penalty provision.

Note:

For other provisions dealing with legal professional privilege, see sections 242 and 242A.

29 After paragraph 203(e)

Insert:

(ea)

set out the effect of subsections 202(5) and (6) (information or documents privileged from being given or produced on the ground of legal professional privilege); and

30 Section 242

Repeal the section, substitute:

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