06 January 2020

20-002MR Former Gold Coast businessman Anthony Silver charged with fraud

Following an ASIC investigation, Mr Anthony Keith Silver (also known as Tony Silver) of Tasmania, has today appeared before the Southport Magistrates Court charged with five counts of fraud to the value of $1.815 million.

ASIC alleges that between 2009 and 2010, Mr Silver dishonestly caused a detriment to investors by using investment funds for purposes other than had been anticipated by investors.

Mr Silver was released on conditional bail to appear in the Southport Magistrates Court on 17 February 2020.

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.

07 January 2020

20-004MR ASIC disqualifies three Gold Coast directors from managing companies

ASIC has disqualified Larry James Matthews, Richard James Matthews and Rowena Ylaya Matthews, of Broadbeach, Queensland, from managing corporations, following the appointment of liquidators to eight companies they managed between them.

Messrs Larry and Richard Matthews have both been disqualified for five years and Ms Rowena Matthews has been disqualified for four years.

The disqualification follows the appointment of liquidators to the following companies:
•Bluestone Project Management Pty Ltd ACN 137 356 659;
•Bluestone Constructions Pty Ltd ACN 137 356 686;
•BluestoneInvest Pty Ltd ACN 146 827 581;
•Bluestone Development Group Pty Ltd ACN 137 356 631;
•Bluestone Administration Pty Ltd ACN 137 356 677;
•Yarrl Property Pty Ltd ACN 150 979 463;
•Daisyfield Securities Pty Ltd ACN 131 212 729; and
•Blackrock Developments Pty Ltd ACN 161 715 162.

ASIC found that:
•Mr Larry Matthews had failed to exercise his duties as a director with due care and diligence, failed to ensure Bluestone Project Management and Bluestone Constructions had paid taxes, failed to prevent Bluestone Project Management and Bluestone Constructions from trading whilst insolvent, improperly used his position to gain an advantage for a related entity and was excluded by the Queensland Building and Construction Commission (QBCC) from being a director or secretary of a QBCC-licensed company;
•Mr Richard Matthews had failed to exercise his duties as a director with due care and diligence, failed to ensure Bluestone Project Management and Bluestone Constructions had paid taxes, failed to prevent Bluestone Constructions from trading whilst insolvent and was excluded by the Queensland Building and Construction Commission from being a director or secretary of a QBCC-licensed company;
•Ms Rowena Matthews had failed to exercise her duties as a director with due care and diligence, failed to ensure Bluestone Project Management and BluestoneInvest had paid taxes, failed to prevent Bluestone Project Management and BluestoneInvest from trading whilst insolvent and improperly used her corporate position to gain an advantage for a related entity.

The total amount of debts owed by the companies to creditors exceeded $26.2 million.

09 January 2020

20-006MR ASIC encourages fair and effective insurance claims handling for people affected by the bushfires – warns against unscrupulous “service providers”

ASIC is committed to helping Australians affected by the devastating bushfires to rebuild their lives. ASIC Deputy Chair Daniel Crennan QC said that ‘ASIC is working with insurers and other key stakeholders to ensure that claims are handled efficiently and fairly. We expect those involved in handling these insurance claims to act with the utmost good faith’.

For consumers and businesses adversely impacted by the bushfires, ASIC Commissioner Sean Hughes said, ‘If you're affected by the bushfires, ASIC suggests you deal directly with your insurer or an authorised, trusted insurance broker or financial adviser. Your insurer may be able to provide emergency accommodation and financial support as part of your claim.’

Information on what to do after a natural disaster is available on ASIC’s MoneySmart website. This includes information about contacting your insurer, assessing the damage when it is safe to do so, and where to find additional help if you need it.

ASIC is also warning consumers and small business owners to watch out for fictitious or unscrupulous tradespeople, repairers or firms offering to assist them with their insurance claim. Mr Hughes added ‘These unscrupulous operators typically target homeowners, farmers and small businesses in the aftermath of natural disasters. They may claim to be able to identify damage to your property, sometimes by way of a free inspection. Be wary of anyone who asks for payment up front and who asks you to sign a contract immediately. Don’t agree to sign anything which prevents you from dealing directly with your insurer, broker, financial adviser or lawyer. Anybody who is concerned about the conduct of such a person or firm should contact ASIC.’

16 January 2020

20-009MR ASIC consults on s444GA share transfers under a Deed of Company Arrangement

ASIC has released a consultation paper on a proposal to formalise its policy on share transfers made under s444GA of the Corporations Act. ASIC will seek public input on the proposal until Tuesday 28 February 2020.

Section 444GA permits a court to grant leave to allow an Administrator to transfer shares as a part of a Deed of Company Arrangement (DOCA), where it will not 'unfairly prejudice' the interests of shareholders. The Courts will generally allow the transfer if evidence shows that the shares have no value.

Where a transfer under a DOCA results in a shareholder's voting power in the company increasing above 20%, ASIC relief from Section 606 is required.

ASIC is proposing to formalise its policy on giving relief from s606 in these circumstances.

Consultation Paper 326 Chapter 6 relief for share transfers using s444GA of the Act (CP 326) seeks views on ASIC providing relief where:
•shareholders are provided with explanatory materials prior to the s444GA hearing, including an Independent Expert Report ('IER') prepared under RG 111: Content of Expert Reports;
•the IER is prepared by an independent expert (not the administrator); and
•the IER is prepared on a liquidation basis.

ASIC Commissioner John Price said, 'The aim of these proposals is to provide certainty for all stakeholders and ensure that shareholders receive information equivalent to a standard control transaction. We encourage submissions on how we can achieve these goals'.

Submissions should be sent to 444GA.Submissions@asic.gov.au by Tuesday 28 February 2020.

09 January 2020

Advice for reporting entities affected by bushfires

Meeting AUSTRAC obligations

If your business has been affected by bushfires, and you are concerned about meeting your AUSTRAC obligations, such as reporting transactions or completing your 2019 compliance report, please contact us to discuss ways we may be able to assist.

You can call us on 1300 021 037, 8:30am to 5:00pm (AEDT) Monday-Friday, or email contact@austrac.gov.au.

Identifying customers who have lost identification in bushfires

Customers who have been affected by bushfires may have lost some of their identification documents.

There are several options for businesses to identify and verify their customers in these circumstances. For example, you might use several types of secondary documents to establish a customer’s identity instead of a primary identification document.

For more information, see our advice on how to identify customers who do not have conventional forms of identification, including examples of alternative documentation.

16 January 2020

AUSTRAC wraps up campaign targeting illegal money transfer dealers

AUSTRAC wraps up campaign targeting illegal money transfer dealers

16 January 2020



In December, we wrapped up our community campaign targeting illegal money transfer dealers, or unregistered remittance dealers. The campaign ran from August to November and focused on raising public awareness and educating communities about the risks they pose.

Unregistered money transfer dealers represent a real threat to Australian communities as they are at high risk of being targeted by criminals to launder money to fund their activities. They also negatively impact the reputation of registered money transfer providers who are trying to do the right thing.

During the campaign, AUSTRAC staff visited communities and registered businesses across Australia. We spoke about the threat that unregistered money transfer dealers pose and how people can anonymously report suspected unregistered dealers.

Key highlights from the campaign

Between August and November, more than 130 AUSTRAC staff visited over 400 registered money transfer businesses in Perth, Adelaide, Sydney, Melbourne, Canberra and Brisbane. These visits gave businesses the opportunity to provide feedback and ask AUSTRAC staff questions about their obligations.

Over 240 people attended town hall meetings, including local community leaders and multicultural organisations, registered money transfer providers, partner agencies and journalists.

Throughout the campaign the main things we heard were that:
•For some, access to the banking system is difficult
•For others, regular proactive engagement with banking partners has worked well in retaining bank accounts
•Remittance businesses are adapting and changing the channels they use to attract customers and provide remittance services (including the use of online platforms), and
•AUSTRAC guidance material, workshops and other support is appreciated.

What’s next for AUSTRAC and the remittance sector?
While the campaign has now finished, our work continues. Over the coming months, we will:
•Consolidate feedback and findings so we can determine the appropriate next steps
•Continue to assess reports of suspected unregistered remittance dealers submitted to AUSTRAC and take any action required
•Continue to support registered remittance providers through guidance resources and workshops throughout 2020 (details coming soon).