Federal Register of Legislation - Australian Government

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No. 1 of 2009 Rules/Other as made
These Rules amend the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) and relates to the transfer of customers under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 through business restructuring.
Administered by: Attorney-General's
Registered 24 Mar 2009
Tabling HistoryDate
Tabled HR12-May-2009
Tabled Senate12-May-2009
Date of repeal 09 Apr 2013
Repealed by Attorney-General's (Spent and Redundant Instruments) Repeal Regulation 2013

Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2009 (No. 1)

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

I, Neil J Jensen, Chief Executive Officer, Australian Transaction Reports and Analysis Centre, make this Instrument under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

 

Dated 16 March 2009

 

 

 

 

 

 

 

[signed]

 

Neil J Jensen PSM

Chief Executive Officer
Australian Transaction Reports and Analysis Centre


 

1              Name of Instrument

This Instrument is the Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2009 (No. 1).

2              Commencement

 

               This Instrument commences on the day after it is registered.

3              Amendment

  Schedule 1 amends the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1).

  

Schedule 1                   Amendment of the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1).

1.            After Chapter 27

insert

 

CHAPTER 28           Applicable customer identification procedures in                                        certain circumstances – assignment, conveyance,                           sale or transfer of businesses

 

28.1.    These Anti-Money Laundering and Counter-Terrorism Financing Rules             (Rules) are made under section 229 for subsection 39(4) of the Anti-Money   Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

28.2.    Subject to paragraphs 28.4 and 28.5, Division 4 of Part 2 of the AML/CTF Act           does not apply to a designated service that is provided in the circumstances     specified in paragraph 28.3.

28.3.    The specified circumstances for the purposes of paragraph 28.2 are that:

               (1)        reporting entity one has assigned, conveyed, sold or transferred             the whole or a part of its business to reporting entity two;

               (2)        the designated service is provided to a transferring customer;     and

               (3)        prior to the assignment, conveyance, sale or transfer, reporting   entity two has reasonably determined:

            (a)        the ML/TF risk it faces in providing the designated        service to the transferring customers as a group; and

            (b)        that it has in place appropriate risk-based systems and   controls to identify, manage and mitigate the ML/TF       risk it faces in providing the designated service to the     transferring customers as a group; and

            (c)        based on the assessed ML/TF risk and its risk-based    systems and controls, it is reasonable for it to either:

            (i)         rely upon the applicable customer identification procedure of reporting entity one as an         appropriate means to identify and verify the       identification of a transferring customer; or

            (ii)        treat a transferring customer who was a pre-     commencement customer of reporting entity one       as if the customer was a pre-commencement     customer of reporting entity two.

28.4.    Reporting entity two must, within 14 days after any of the circumstances            specified in paragraph 28.5 comes into existence, take one or more of the     actions specified below:

                        (1)        carry out the applicable customer identification procedure,         unless reporting entity two has previously carried out that         procedure or a comparable procedure; or

                        (2)        collect any KYC information in respect of the customer; or

                        (3)        verify, from a reliable and independent source, KYC     information that has been obtained in respect of the customer,            as is appropriate to the ML/TF risk relevant to the provision of the designated service by reporting entity two;

            for the purpose of enabling reporting entity two to be reasonably satisfied that    the customer is the person that he or she claims to be.

28.5.    For the purposes of paragraph 28.4 the following circumstances are specified:

                        (1)        a suspicious matter reporting obligation arises in relation to a      transferring customer; or

                        (2)        reporting entity two reasonably suspects that reporting entity      one did not carry out the applicable customer identification   procedure when required; or

                        (3)        a significant increase has occurred in the level of ML/TF risk as             assessed under the AML/CTF program of reporting entity two,      in relation to the provision of a designated service by reporting           entity two to a transferring customer.

28.6.    In this Chapter:

                  (1)        ‘reporting entity one’ means the reporting entity that assigns,      conveys, sells or transfers a whole or a part of the business;

                  (2)        ‘reporting entity two’ means the reporting entity to which           reporting entity one assigns, conveys, sells or transfers a whole         or a part of the business;

                  (3)        ‘transferring customer’ means a customer who is a customer of reporting entity two in relation to a designated service solely           because of the assignment, conveyance, sale or transfer of the    whole or a part of the business from reporting entity one.

 

 

 

 

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the National Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to http://www.privacy.gov.au or call 1300 363 992.