Record-keeping requirements 7.39 As and keeping and disclosure have an Cherney, O’Reilly Grabosky observe, ‘record important regulatory function by subjecting records to possible public scrutiny and enhancing vigilance on the part of third A similar view was expressed parties.’35 during the consultations, with the Victorian Automobile Chamber of Commission’s Commerce (VACC) remarking that organised crime is attracted to industries with lax internal controls in relation to record keeping.36 7.40 Maintaining records about the provision of goods and services creates an audit trail. An audit trail may deter or enable the detection of the distribution of illicit goods through a legitimate business, or the diversion of licit goods from a legitimate business for unlawful use. Potentially, an audit trail may also deter or enable the detection of the provision of unlawful services by a business that is owned or operated by organised crime (such as unlawful debt collection services). 7.41 Record-keeping requirements will often accompany any customer or supplier due diligence programs, or may operate in the absence of such programs. 7.42 The Commission was told of several industries where high-quality record keeping helps to deter infiltration and, conversely, where poor record keeping helps to facilitate infiltration. 7.43 In the experience of the Australian Crime Commission (ACC) and Victoria Police, record keeping measures help to deter the diversion of legitimate chemicals and pharmaceuticals for illicit drug manufacturing.37 First, the state and territory precursor control regimes help to curb precursor diversion from legitimate chemical manufacturers and suppliers. Precursor chemicals are chemicals that can be used to make other chemicals, such as illicit drugs. Example The Victorian precursor control regime requires that a receiver of precursor chemicals cannot be supplied with chemicals unless they provide sufficient proof of identity to the supplier, have an account with the supplier, and give the supplier an end-user declaration that records the personal details, the name and quantity of the receiver’s chemical, the proposed date of supply, and the intended use of the chemical.38 35 Adrian Cherney, Juani and and Meta-regulation: Strategies Aimed at Governing Illicit Synthetic O’Reilly Peter Grabosky, ‘Networks (2006) 16 (4) Policing and Society 370, 376. Drugs’ 36 Consultation 11 (Victorian Automobile Chamber of Commerce). 37 Consultations 6 (Australian Crime Commission), 9 (Victoria Police).
Record-keeping requirements 7.39 As Cherney, O’Reilly and Grabosky observe, ‘record keeping and disclosure have an important regulatory function by subjecting records to possible public scrutiny and enhancing vigilance on the part of third parties.’35 A similar view was expressed during the Commission’s consultations, with the Victorian Automobile Chamber of Commerce (VACC) remarking that organised crime is attracted to industries with lax internal controls in relation to record keeping.36 7.40 Maintaining records about the provision of goods and services creates an audit trail. An audit trail may deter or enable the detection of the distribution of illicit goods through a legitimate business, or the diversion of licit goods from a legitimate business for unlawful use. Potentially, an audit trail may also deter or enable the detection of the provision of unlawful services by a business that is owned or operated by organised crime (such as unlawful debt collection services). 7.41 Record-keeping requirements will often accompany any customer or supplier due diligence programs, or may operate in the absence of such programs. 7.42 The Commission was told of several industries where high-quality record keeping helps to deter infiltration and, conversely, where poor record keeping helps to facilitate infiltration. 7.43 In the experience of the Australian Crime Commission (ACC) and Victoria Police, record keeping measures help to deter the diversion of legitimate chemicals and pharmaceuticals for illicit drug manufacturing.37 First, the state and territory precursor control regimes help to curb precursor diversion from legitimate chemical manufacturers and suppliers. Precursor chemicals are chemicals that can be used to make other chemicals, such as illicit drugs. Example The Victorian precursor control regime requires that a receiver of precursor chemicals cannot be supplied with chemicals unless they provide sufficient proof of identity to the supplier, have an account with the supplier, and give the supplier an end-user declaration that records the receiver’s personal details, the name and quantity of the chemical, the proposed date of supply, and the intended use of the chemical.38 35 Adrian Cherney, Juani O’Reilly and Peter Grabosky, ‘Networks and Meta-regulation: Strategies Aimed at Governing Illicit Synthetic Drugs’ (2006) 16 (4) Policing and Society 370, 376. 36 Consultation 11 (Victorian Automobile Chamber of Commerce). 37 Consultations 6 (Australian Crime Commission), 9 (Victoria Police).