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Corporations and Trust Law – Semester 2, 2022 Assessment Event 3: Case Study/Research Report (Weighting: 30 %) Due: Week 10 Refer to the http://courses.highered.tafensw.edu.au for the...

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Corporations and Trust Law – Semester 2, 2022

Assessment Event 3: Case Study/Research Report (Weighting: 30 %)
Due: Week 10

Refer to the http:
courses.highered.tafensw.edu.au for the specific requirements of
this assessment task. All submissions must comply with the requirements listed in the
Course Handbook.

The purpose of the assessment is for students to apply their knowledge of regulatory
odies, financial disclosure obligations, anti-money laundering and counter-te
orism
finance and privacy laws. Students will be provided with a contemporary case
study/problem requiring you to undertake research, apply the relevant law, interpret
and assess the problems and conclude with suitable recommendations/conclusions.

All submissions must address ALL questions.

The research report is to be no longer than 2,500 words in length demonstrating a
critical analysis of the situation and recommendation. All submissions must contain
appropriate referencing and bibliography. Responses must be within 10% +/- of the
word limit. Note that the reference list does not form part of the word count.
Student submissions should include a simple cover page that includes word counts
for each question. In-text citations must be in the Harvard AGPS style. A single
Harvard AGPS Reference List at the end of the submission should include all relevant
eferences cited in both questions.
Students are encouraged to start writing early; editing typically takes more time
than writing.
Case Study Scenario and Questions
You are the director of a company registered in Australia which is involved in the
development of ‘driverless vehicles’ called On the Wheel Pty Ltd. The company’s main
aim is to finance and help young entrepreneurs apply and transfer the latest driverless
and vehicle technology to a variety of fields including tourism, travel, entertainment,
insurance and security.
When assessing applications for finance, the members, officers and employees of On
the Wheel Pty Ltd have access to personal information about the individuals making
the application and confidential/sensitive information about how the technology will be
applied commercially, including projected profits from the application.
You receive an email from a close friend that you went to TAFE with who is now the
director of an overseas company stating that their company wants to fund some of
your projects. When you read the email further there is a line with small font that says:
“By the way, we really need to get the money out of this country and it will
greatly benefit your company.”
You also see that your friend mentions the details of an application from a young
entrepreneur (which is not generally available) and you wonder how they would have
known about this. The offer in the email is very appealing because you have known
and trusted this friend from TAFE for a long while now and also know that it is quite
difficult to get funds in Australia in the cu
ent market.
Required: Based on the above information and your knowledge of the law affecting
corporations in Australia, answer the following questions:-
1. Outline any
eaches that have occu
ed or could occur of your director
duties and Anti-money Laundering and Counter-te
orism Financing
legislation. Discuss with reference to case examples.
2. Outline and discuss in what ways the Corporations Act 2001 regulates as
well as prohibits the misuse of the information which was disclosed
which is not generally available and that would have a material effect on
the price of the company’s shares.
3. With reference to Australian Privacy Laws (including relevant privacy
legislation, principles
ules and case examples), outline and discuss
whether the directors are in
each of any privacy obligations and if so,
what the potential consequences are for the directors and the company.
4. Give at least 3 recommendations of how you should handle this scenario
to mitigate any risks of
eaching the above rules, laws and regulations.
Answered 13 days After Oct 18, 2022

Solution

Tarun answered on Oct 21 2022
69 Votes
INTRODUCTION
In response to international efforts to improve Australia's capacity to identify and stop money laundering and te
orism funding, the Australian Government passed the Anti-Money Laundering and Counter-Te
orism Financing Act of 2006 (hereinafter refe
ed to as “AML/CTF Act”) and the Anti-Money Laundering and Counter-Te
orism Financing Rules (hereinafter refe
ed to as “AML/CTF Rules”). In addition, the said law will strengthen anti-money laundering and counter-te
orism measures in Australia. The AML/CTF Act and AML/CTF Rules place restrictions on various industries, including the financial sector, the gambling industry, remittance (money transfer) services, bullion dealers, and others (refe
ed to as "reporting entities") that offer specific services (refe
ed to as "services When providing certain services, these requirements include gathering and validating specific "know your customer" (KYC) information regarding a customer's identification. When processing personal information obtained for the purposes of complying with their AML/CTF Act duties, businesses that are obligated to abide by the AML/CTF Act are also expected to abide by the Privacy Act 1988. The Australian Government agency in charge of ensuring adherence to the AML/CTF Act is called Australian Transaction Reports and Analysis Centre (hereinafter refe
ed to as “AUSTRAC”).
1. Outline any
eaches that have occu
ed or could occur of your director duties and Anti-money Laundering and Counter-te
orism Financing legislation. Discuss with reference to case examples: The AML/CTF Act makes it illegal to create false or deceptive information or documentation, fa
icate documents to be used in customer identification processes, deliver or receive a designated service using a false customer name or customer anonymity, and set up a transaction in a way that avoids a reporting requirement under the AML/CTF Act. Additionally, the AML/CTF Act normally contains provisions for civil penalties for violations of its requirements. For instance, a reporting company violates a civil penalty provision if it renders a designated service to a client before implementing, or if it fails to maintain, a compliance AML/CTF programme. According to the AML/CTF Act, a reporting body is typically prohibited from telling a client that it has a suspicion about them or that it has reported a suspicious matter to AUSTRAC about them. According to the AML/CTF Act, sharing such a suspect or report would be considered tipping off. In the case at hand before us, the Director has violated Section 123 of the AML/CTF Act by disclosing the information. Two instances of bank employees being found guilty of money laundering have occu
ed. However, money laundering was an additional charge in both cases. After assuming the identities of bank customers to obtain credit cards, an NSW employee of the Commonwealth bank was found guilty of theft and careless dealing with the proceeds of a crime (Butler v R [2012] NSWCCA 54). After using secret Australian Bureau of Statistics data to execute successful derivatives trades, an associate director of National Australia Bank was found guilty of Handling insider trading and criminal proceeds (Kamay v the Queen [2015] VSCA 296). A former chief of staff to the CEO of the National Australia Bank pleaded guilty to 38 counts of fraud and co
uption in a case from 2020 and was sentenced to 80 years in prison. The criminal case against her associate stems from 74 allegations of fraud and co
uption, and it is still pending. However, neither accused was charged with money laundering.
In case of non-compliance under the AML/CTF regulations, AUSTRAC can take actions to enforce the compliance with law and/or seek a fine. There are numerous legal measures called as "enforcement actions" to ensure compliance of law by reporting entities. AUSTRAC has several enforcement options at its disposal:
· Order with regard to civil penalties
· enforceable commitments
· notices of violations
· advice for co
ection.
2. Outline and discuss in what ways the Corporations Act 2001 regulates as well as prohibits the misuse of the information which was disclosed which is not generally available and that would have a material effect on the price of the company’s shares: Companies and registered schemes must maintain a register of members, as well as, if applicable, a register of option and debenture holders, according to Section 168 of the Corporations Act. According to Section 169 of the Act, a register of members must include particular information about each member, such as their...
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