Draft legislation has been released to amend the Corporations Act 2001 to enhance the substantial holding and tracing notice regimes, which, amongst other things, govern the disclosure of beneficial ownership for listed entities.
This is pursuant to the Government’s announcement as part of its 2022 election platform that it would implement a public registry of beneficial ownership to show who ultimately owns or controls companies and legal vehicles in Australia. Increasing the availability of companies’ beneficial ownership information is intended to discourage the use of complex structures to obscure tax liabilities and facilitate financial crimes.
The draft legislation proposes to amend the Corporations Act 2001 to:
- increase the disclosure of ownership information for listed companies; and
- broaden ASIC’s regulatory enforcement powers.
Interested parties are invited to submit responses until 13 December 2024.
Ref: Treasury website, ‘Enhanced beneficial ownership disclosure for listed entities’, 14 November 2024
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Australia signs superannuation arrangement with Cook Islands
The Australian Government has signed a Memorandum of Understanding (‘MOU’) with the Cook Islands to allow portability of retirement savings between the two countries.
This will benefit Cook Islanders who return home to retire, and Australians who have periods of work in the Cook Islands.
This arrangement addresses a gap in the existing Trans-Tasman Retirement Savings Portability scheme that prevented Cook Islands citizens from sending Australian-earned superannuation to their home country, while also being unable to release accumulated superannuation under the departing Australia superannuation payment.
The scheme will allow those who move to the Cook Islands permanently to transfer their superannuation to the Cook Islands National Superannuation Fund.
Workers with accumulated retirement savings in the Cook Islands will be able to move their savings to Australia upon permanent migration.
The MOU delivers on the Government’s commitment made in the Cook Islands — Australia ‘Oa Tumanava partnership agreement to explore reciprocal superannuation portability arrangements.
The scheme will commence following implementation of the necessary law changes and agreement by each country.
Ref: Assistant Treasurer’s Media Release, 13 November 2024
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Anti-money laundering Bill now passed with Senate amendments
The Senate Legal and Constitutional Affairs Legislation Committee has released its report in relation to the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 (‘the Bill’). The Bill has now passed both Houses of Parliament and awaits assent.
Editor: A media release from the Attorney-General’s Department in relation to the Bill was discussed in the October edition of Voice.
The committee had recommended that the Bill be passed, subject to the following amendments (which have all been agreed to):
- moving the commencement of the ‘tipping off’ offence to 31 March 2025;
- including a note that reflects the policy intent for the anti-money laundering and counter-terrorism financing (‘AML/CTF’) regime to not capture barristers acting on the instructions of a solicitor;
- ensuring entities providing custodial, depository or safe deposit box services without associated transaction elements are not unintentionally captured by the AML/CTF regime;
- ensuring uniform exemptions for entities that only provide certain designated services from governing body requirements;
- moving the criteria for ordering institutions and beneficiary institutions to the AML/CTF Rules to increase flexibility and allow for further consultation with industry;
- ensuring that, where a civil penalty is being considered, there is a clear connection to the customer that should have been subject to customer due diligence, by amending S.28 and S.30 (regarding the provision by a reporting entity of a designated service to a customer) to read ‘the customer’ instead of ‘a customer’; and
- ensuring that, in certain circumstances, a reporting entity can provide a designated service to a customer once any non-compliance has been remedied.
Ref: Parliament of Australia website, ‘Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 [Provisions]’ Report, 13 November 2024
