Financial Transaction Reports Act 1988

PART VIA - RETAINING FINANCIAL TRANSACTION DOCUMENTS  

Division 3 - Obligations relating to active ADI accounts transferred to another ADI  

SECTION 40K  

40K   TRANSFEROR ADI MUST GIVE DOCUMENTS TO TRANSFEREE ADI  

An ADI (the transferor ADI ) commits an offence if:

(a) a document is in its possession in fulfilment of an obligation imposed on it by section 40F , subsection 40G(1) or section 40H or 40J ; and

(b) the document relates to an active account that has been, or is proposed to be, transferred to another ADI (the transferee ADI ) under:

(i) a law of the Commonwealth or of a State or Territory; or

(ii) an arrangement between the transferor ADI and the transferee ADI; and

(c) the transferor ADI intentionally fails to give the relevant document to the transferee ADI within the 120-day period beginning 30 days before the transfer of the account.

Penalty: 10 penalty units.