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Anti-Money Laundering and Countering Financing of Terrorism Act 2009

Enforcement - Offences - Offences relating to suspicious activity reports and prescribed transaction reports

98: Defence

You could also call this:

"Saying you did everything you could to follow the rules is a defence."

Illustration for Anti-Money Laundering and Countering Financing of Terrorism Act 2009

If you are charged with breaking a rule related to suspicious activity reports or prescribed transaction reports, you have a defence if you can prove you took all reasonable steps to comply with Part 2. You can also use this defence if you can show it was not reasonable to expect you to comply with Part 2 in your particular situation. When a court decides if you took all reasonable steps, they consider what kind of business you are in and if you have good procedures in place to follow the rules. You must tell the prosecutor in writing within 21 days that you plan to use this defence and what steps you took to comply with the rules. If you want to use a step you did not mention in your written notice as part of your defence, you need the court's permission for it to be considered.

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Part 3Enforcement
Offences: Offences relating to suspicious activity reports and prescribed transaction reports

98Defence

  1. It is a defence to a charge against a person in relation to a contravention of, or a failure to comply with, Part 2 if the defendant proves that—

  2. the defendant took all reasonable steps to ensure that the defendant complied with that Part; or
    1. in the circumstances of the particular case, the defendant could not reasonably have been expected to ensure that the defendant complied with that Part.

      1. In determining, for the purposes of subsection (1)(a), whether or not a defendant took all reasonable steps to comply with Part 2, the court must have regard to—

      2. the nature of the reporting entity and the activities in which it engages; and
        1. the existence and adequacy of any procedures established by the reporting entity to ensure compliance with that Part.

          1. Except as provided in subsection (4), subsection (1) does not apply unless, within 21 days after the service of the summons, or within such further time as the court may allow, the defendant has delivered to the prosecutor a written notice—

          2. stating that the defendant intends to rely on the defence referred to in subsection (1); and
            1. specifying the reasonable steps that the defendant will claim to have taken.

              1. In any such prosecution, evidence that the defendant took a step not specified in the written notice required by subsection (3) is not, except with the leave of the court, admissible for the purpose of supporting a defence under subsection (1).

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