The quote is from the child protection policy.
Firstly the Elders are instructed to consult the branch not the police. The branch will tell them if the law demands they report it if not they are not obligated to do so. The balance is that they don't. No change really.
They can tell the authorities if the child is deemed to be in danger so in theory if the matter has come to the attention of the elders then they may feel that the child is no longer in danger since the parents are aware and will take precautions. If the abuser is a parent then they may feel that if the other parent is aware then they will take responsibility for the safety of the child. The policy states that the parents have the responsibility to protect the child not the elders.
The policy also calls child abuse a sin not a crime. It should say that child abuse is a crime and should be reported to the authorities on every occasion. The elders can then deal with the spiritual aspect if they wish but the police will be able to carry out the investigation and prosecution.
The policy is extremely weak and not fit for purpose. No other organisation would be able to get away with this approach. The bottom line is children attend meetings, they are encouraged to fully participate in congregation activities and make a commitment to the organisation as early as possible therefore they have a right to expect that the adults overseeing congregation matters will take safeguarding seriously.