Postgraduate - UnitLAW7220 - Anti-money laundering

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered, or view unit timetables.

Notes

Synopsis

This unit has two parts. It introduces students to anti-money laundering reforms brought about by the Anti-Money Laundering and Counter Terrorism Financing Act 2006 (AML Act). It also seeks to give students a sound understanding of the legal principles involved in tracing funds that are obtained by theft or fraud (including fund obtained by fraudulent investment schemes or stolen by employees or directors of companies) and the claims at common law and equity that may be made in seeking to recover such funds. The types of civil claims covered by this course, for example, include proprietary claims (when property that is obtained by the proceeds of fraud can be traced and claimed) and personal liability of financial institutions for handling money obtained by theft or fraud.

Outcomes

Upon completion of this unit students should:

1. have a general understanding of the various regulatory systems in place within the Australian banking and finance industry
2. have a general understanding of the legal basis of the banker-customer relationship
3. have a general understanding of the duty of confidentiality owed by financial institutions to customers and the erosion of that duty by reference to the AML Act, pre-trial discovery and inspection and orders for production by foreign courts
4. gain a comprehensive understanding of the disclosure obligations imposed on financial institutions under the AML Act, the enhanced the role of Austrac, the extra-territorial operation of the AML Act, special provisions concerning designated business groups and due diligence requirements concerning correspondent banking
5. have a good understanding of the rules regarding the tracing of funds through bank accounts and foreign jurisdictions
6. have a good understanding of the risks to financial institutions in the course of handling money laundered through the banking system, including contractual liability, statutory liability, common law liability (conversion of cheques obtained by theft or fraud and for restitution) and equitable liability (constructive trusts)
7. have a good understanding of specific civil claims that may be by a victim of theft or fraud against recipients of the traceable proceeds of theft or fraud, namely, for conversion of cheques, restitution of money and liability as a constructive trustee
8. understand the legal requirements in making proprietary claims to specific property obtained through money laundered funds
9. be able to understand, evaluate and apply legal and policy arguments in favour of reform of certain areas of law and practice insofar as they might impact on the banking and finance industry.

Assessment

Take home exam (3,750 words): 50%
Research Paper (3,000 words): 40%
Class Presentation / Participation: 10%

Chief examiner(s)

Dr Vicky Priskich

Contact hours

24 contact hours per semester (either intensive, semi-intensive or semester long, depending on the Faculty resources, timetabling and requirements). Students will be expected to do reading set for class, and to undertake additional research and reading applicable to a 6 credit point unit.