Senator BRANDIS (1:21 PM) —The opposition supports the Financial Transaction Reports Amendment (Transitional Arrangements) Bill 2008. The bill arises in this way. Under the Financial Transaction Reports Act 1988, certain regulated businesses are required to report information about transactions to AUSTRAC, the Australian Transaction Reports and Analysis Centre. Those obligations will cease on 12 December this year, when updated measures begin under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006—one of the great achievements of the former Attorney-General, Mr Ruddock. There is, however, a 15-month grace period under the Anti-Money Laundering and Counter-Terrorism Financing Act to allow businesses to take reasonable steps to improve their systems in order to comply with the new obligations. New systems must be in place by 11 March 2010.

The Financial Transaction Reports Amendment (Transitional Arrangements) Bill fixes an unintended loophole that, during the period of grace, companies would not be required to report transactions after 12 December 2008 until their new systems were in place. The bill requires that reporting bodies continue reporting transactions under their old systems until their new systems are in place, thereby ensuring that AUSTRAC maintains full records during the transition period and that there is continuity of treatment during the transition period. The bill, of course, is therefore a corrective measure. It has the opposition’s support. May I commend the industry and the alertness of the public servant—who is perhaps sitting in the government advisers box at the moment—who spotted this loophole and has enabled the Senate now to repair it.