191Remedial directions

191 Remedial directions

(1) This section applies if the AUSTRAC CEO is satisfied that a reporting entity has contravened, or is contravening, a civil penalty provision (other than subsection (4)). (2) The AUSTRAC CEO may give the reporting entity a written direction requiring the reporting entity to do one or both of the following: (a) to take specified action directed towards ensuring that the reporting entity does not contravene the civil penalty provision, or is unlikely to contravene the civil penalty provision, in the future; (b) in the case of a contravention of subsection 43(2), 46(2) or (5), 46A(2) or 47(2)—to take specified action to remedy the contravention by giving the relevant report to the AUSTRAC CEO within a period specified in the direction. (3) The following are examples of the kinds of direction that may be given to a reporting entity under paragraph (2)(a): (a) a direction that the reporting entity implement effective administrative systems for monitoring compliance with a civil penalty provision; (b) a direction that the reporting entity implement a system designed to give the reporting entity’s officers, employees and agents a reasonable knowledge and understanding of the requirements of a civil penalty provision, in so far as those requirements affect the officers, employees or agents concerned. (3A) The AUSTRAC CEO: (a) must not act under paragraph (2)(b) if it appears to the AUSTRAC CEO that the contravention occurred more than 24 months before the day on which a direction would be issued; and (b) must not act under paragraph (2)(b) unless the AUSTRAC CEO has: (i) assessed the risks that have arisen in view of the contravention; and (ii) determined that giving a direction under that paragraph is an appropriate and proportionate response in the circumstances. (4) A reporting entity must not contravene a direction under subsection (2). Civil penalty (5) Subsection (4) is a civil penalty provision. Remedial direction is not a legislative instrument (6) A direction under subsection (2) is not a legislative instrument.