Technology

4 Things You Need To Know About Threshold Transaction Report

Money laundering is an issue that has been prevalent in Australia, with the total value equalling 2-5% of the country’s GDP in a single year. AUSTRAC, the Aussie government’s financial intelligence unit, puts down specific reporting requirements to support AML (Anti-Money Laundering). 

One of these requirements sets down a transaction cap, above which you must report to the AUSTRAC by submitting a TTR (Threshold Transaction Report). Irrespective of whether you are paying or receiving the money, you are obligated to submit the report if you fall under the designated services category. 

To avoid complications in the future and steer clear of the AUSTRAC coming down on you, read on! 

When should you submit a TTR?

You have to submit a TTR every time you partake in a transaction worth more than AUD 10,000. This is only if your organisation is classified as a designated service. 

But, what is a designated service? Any organisation is part of the financial industry and dispenses services like issuing chequebooks, deposits, account management, etc. 

Also, if you happen to be affiliated with an RNP (Remittance Network Provider) and a threshold transaction is detected on your RNP network, you are still obligated to submit the TTR.

How do you submit a TTR?

To submit the threshold transaction report, you need to head to AUSTRAC’s official website.

The website contains four different forms for the various industry types your organisation caters to. They are as follows: services 

investment/insurance/superannuation 

Bullion and financial services 

Money services businesses

If your organisation doesn’t fit in any of the above sub-categories, you can just apply via the financial and bullion services form. 

Moreover, these reports can be submitted in the following ways:

  • Spreadsheets 
  • Data entry 
  • By use of a computer program that is capable of extracting all transaction information

What information do you need to include in a TTR?

Your TTR reports must be extremely thorough and must include the following information:

  • Customer details 
  • The person who carried out the transaction
  • The person who received the money 
  • Comprehensive transaction details, including amount, date, type of currency, etc. 

What to do if it isn’t the customer who made the transaction?

It isn’t always going to be the customer who makes the transaction. In this case, you also need to mention this in your TTR. Moreover, it must include comprehensive details about this intervening third party. 

To give you a brief idea about the individuals being spoken about, here are a few examples:

  • Someone who is acting on behalf of the customer and carrying out the transaction (e.g., an employee)
  • Someone is conducting the transaction for a family member 
  • Someone is carrying out the transaction on behalf of an organisation (e.g., trusts)

Although, you need to make sure that the person carrying out the TT (Threshold Transaction) happens to be a customer of a designated service. 

Now, it is possible that the customer isn’t present in the equation, and you haven’t provided them with a designated service in the past. 

In this case, you must make sure that you research the customer well and find out as much information about them. Make sure you do this before providing them with your services.

With the advent of the AUSTRAC and its reporting requirements, AML has taken a significant stand. Although, laundering is still rampant in the country and must be taken care of. 

If you are a designated services provider, make sure you submit the TTR on time to avoid further complications and scrutiny from the AUSTRAC.

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