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No. 1 of 2007 Rules/Other as amended, taking into account amendments up to Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2010 (No. 2)
This instrument incorporates the Anti-Money Laundering and Counter-Terrorism Financing Rules made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
Administered by: Attorney-General's
Registered 31 Jan 2011
Start Date 16 Sep 2010
End Date 20 Dec 2010
Table of contents.

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Instrument 2007 (No. 1)

as amended

made under section 229 of the

This compilation was prepared on 27 January 2011
taking into account amendments up to Anti‑Money Laundering and
Counter‑Terrorism Financing Rules Amendment Instrument 2010 (No. 2)

The text of amendments not in force on that date is appended in the Notes section.

Prepared by the Australian Transaction Reports and Analysis Centre (AUSTRAC)


Contents

1                             Name of Instrument [see Note 1]                                                          7

2                             Rules                                                                                                 7

CHAPTER 1                                                                                                                 8

Part 1.1                   Introduction                                                                                       8

Part 1.2                   Key terms and concepts                                                                    8

CHAPTER 2                                                                                                              20

Part 2.1                   Definition of ‘designated business group’                                        20

CHAPTER 3                                                                                                              30

Part 3.1                   Correspondent banking due diligence                                             30

Part 3.2                   Anti-Money Laundering and Counter-Terrorism Financing Rules in Respect of Paragraph (e) of the Definition of ‘Correspondent Banking Relationship’ in Section 5 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006                   32

CHAPTER 4                                                                                                              33

Part 4.1                   Introduction                                                                                     33

Part 4.2                   Applicable customer identification procedure with respect to individuals 34

Part 4.3                   Applicable customer identification procedure with respect to companies  37

Part 4.4                   Applicable customer identification procedure with respect to trustees      43

Part 4.5                   Applicable customer identification procedure with respect to partners      47

Part 4.6                   Applicable customer identification procedure with respect to associations           49

Part 4.7                   Applicable customer identification procedure with respect to registered co‑operatives     52

Part 4.8                   Applicable customer identification procedure with respect to government bodies 54

Part 4.9                   Verification from documentation                                                      55

Part 4.10                 Verification from reliable and independent electronic data               56

Part 4.11                 Agents of customers                                                                        57


CHAPTER 5                                                                                                              60

Part 5.1                   Special anti‑money laundering and counter‑terrorism financing (AML/CTF) program        60

Part 5.2                   Applicable customer identification procedures in relation to special AML/CTF program   60

CHAPTER 6                                                                                                              61

Part 6.1                   Verification of identity of customers                                                61

Part 6.2                   Verification of the identity of customers for the purposes of section 35     61

Part 6.3                   Verification of the identity of pre‑commencement customers           61

Part 6.4                   Verification of the identity of low‑risk service customers                 62

CHAPTER 7                                                                                                              63

Part 7.1                   Applicable customer identification procedures deemed to have been carried out by a reporting entity                                                                                63

Part 7.2                   Licensed financial advisers                                                              63

Part 7.3                   Designated business groups                                                            64

CHAPTER 8                                                                                                              65

Part 8.1                   Part A of a standard anti‑money laundering and counter‑terrorism financing (AML/CTF) program                                                                                           65

Part 8.2                   AML/CTF risk awareness training program                                      66

Part 8.3                   Employee due diligence program                                                    67

Part 8.4                   Oversight by boards and senior management                                  67

Part 8.5                   AML/CTF Compliance Officer                                                           67

Part 8.6                   Independent review                                                                          67

Part 8.7                   AUSTRAC feedback                                                                          68

Part 8.8                   Permanent establishments in a foreign country                               68

CHAPTER 9                                                                                                              69

Part 9.1                   Part A of a joint anti‑money laundering and counter‑terrorism financing (AML/CTF) program                                                                                                        69

Part 9.2                   AML/CTF risk awareness training program                                      70

Part 9.3                   Employee due diligence program                                                    71

Part 9.4                   Oversight by boards and senior management                                  71

Part 9.5                   AML/CTF Compliance Officer                                                           71

Part 9.6                   Independent review                                                                          72

Part 9.7                   AUSTRAC feedback                                                                          72

Part 9.8                   Permanent establishments in a foreign country                               72

CHAPTER 10                                                                                                            74

Part 10.1                 Casinos                                                                                           74

Part 10.2                 On‑course bookmakers and totalisator agency boards                     75

Part 10.3                 Gaming machines                                                                            76

Part 10.4                 Accounts for online gambling services                                            77

CHAPTER 11                                                                                                            78

CHAPTER 12     Electronic funds transfer instructions                                79

CHAPTER 13     Approved third‑party bill payment system                         80

CHAPTER 14     Thresholds for certain designated services                     81

CHAPTER 15     Ongoing customer due diligence                                         84

CHAPTER 16     Reportable details for international funds transfer instructions (items 1 and 2 in section 46)                                                                              86

CHAPTER 17     Reportable details for international funds transfer instructions under a designated remittance arrangement (items 3 and 4 in section 46)    90

CHAPTER 18     Reportable details for suspicious matters                       101

CHAPTER 19     Reportable details for threshold transactions                110

CHAPTER 20     Record‑keeping obligations under section 114             116

CHAPTER 21     Issuing or selling a security or derivative                        117

CHAPTER 22     Exemption of certain types of transactions relating to the over-the-counter derivatives market                                                                  119

CHAPTER 23     Anti-Money Laundering and Counter-Terrorism Financing Rules for designated remittance arrangements                               122

CHAPTER 24     Anti-Money Laundering and Counter-Terrorism Financing Rules for movements of physical currency into or out of Australia 124

CHAPTER 25     Anti-Money Laundering and Counter-Terrorism Financing Rules for receipts of physical currency from outside Australia                   128

CHAPTER 26     Anti-Money Laundering and Counter-Terrorism Financing Rules for movements of bearer negotiable instruments into or out of Australia         131

CHAPTER 27     Anti-Money Laundering and Counter-Terrorism Financing Rules for registrable details — Register of providers of designated remittance services                                                                                     134

CHAPTER 28     Applicable customer identification procedures in certain circumstances – assignment, conveyance, sale or transfer of businesses 136

CHAPTER 29     Record-keeping obligations under section 107             139

CHAPTER 30     Disclosure certificates obtained by reporting entities in the course of conducting applicable customer identification procedures    141

CHAPTER 31     Exemption of certain types of transactions relating to currency exchange transactions                                                                             144

CHAPTER 32     Exemption of certain types of transactions relating to safe deposit boxes or similar facilities                                                                        146

CHAPTER 33     Applicable customer identification procedure for purchases and sales of bullion valued at less than $5,000                                      148

CHAPTER 34     Affixing of notices about cross-border movement reporting obligations    149

CHAPTER 35     Exemption from applicable customer identification procedures for correspondent banking relationships                              151

CHAPTER 36     Exemption of certain designated services within a corporate structure     152

CHAPTER 37     Exemption from threshold transaction reporting for certain designated services                                                                                     154

CHAPTER 38     Exemption from applicable customer identification procedures for the sale of shares for charitable purposes                                      155

CHAPTER 39     Exemption from applicable customer identification procedures - premium funding loans for a general insurance policy                 157

CHAPTER 40     Definition of ‘exempt legal practitioner service’             159

CHAPTER 41     Cashing out of superannuation fund low balance accounts  160

CHAPTER 42     Commodity warehousing of grain                                     161

CHAPTER 43     Friendly Society closed funds                                            163

CHAPTER 44     Removing a Person’s Name and Registrable Details from the Register of Providers of Designated Remittance Services               164

CHAPTER 45     Debt Collection                                                                       168

CHAPTER 46     Special circumstances for the applicable customer identification procedure                                                                                                     170

CHAPTER 47     Risk-only life policy interests in a superannuation fund 172

CHAPTER 48     Exemption of salary packaging administration services from the AML/CTF Act                                                                                              174

Notes to the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) 175

 

 


  

  

1              Name of Instrument [see Note 1]

                This Instrument is the Anti‑Money Laundering and Counter‑Terrorism Financing Rules Instrument 2007 (No. 1).

2              Rules

                The Anti‑Money Laundering and Counter‑Terrorism Financing Rules are set out in this Instrument.

 


CHAPTER 1             

Part 1.1              Introduction

1.1.1    These Anti‑Money Laundering and Counter‑Terrorism Financing Rules (AML/CTF Rules) are made pursuant to section 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act).  Section 229 of the AML/CTF Act empowers the AUSTRAC CEO to make rules prescribing matters required or permitted by the AML/CTF Act to be prescribed by AML/CTF Rules.

Note   reporting entities should note that the activities they carry out in order to comply with the AML/CTF Rules are also subject to the provisions of the Privacy Act 1988, even if the reporting entity is generally exempt from that Act.

Part 1.2              Key terms and concepts

1.2.1    In these Rules:

accredited translator means:

(1)     a person currently accredited by the National Accreditation                            Authority for Translators and Interpreters Ltd. (NAATI) at the               level of Professional Translator, or above, to translate from a                 language other than English into English; or

(2)     a person who currently holds an accreditation that is consistent with the standard specified in (1).

the AML/CTF Act means the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006.

AML/CTF program means an anti‑money laundering and counter‑terrorism financing program as defined in section 83 of the AML/CTF Act.

beneficial owner, in respect of a company, means any individual who owns through one or more share holdings more than 25 per cent of the issued capital in the company.

certified copy means a document that has been certified as a true copy of an original document by one of the following persons:

(1)        a person who, under a law in force in a State or Territory, is currently licensed or registered to practise in an occupation listed in Part 1 of Schedule 2 of the Statutory Declarations Regulations 1993;

(2)        a person who is enrolled on the roll of the Supreme Court of a State or Territory, or the High Court of Australia, as a legal practitioner (however described);

(3)        a person listed in Part 2 of Schedule 2 of the Statutory Declarations Regulations 1993. For the purposes of these Rules, where Part 2 uses the term ‘5 or more years of continuous service’, this should be read as ‘2 or more years of continuous service’;

(4)        an officer with, or authorised representative of, a holder of an Australian financial services licence, having 2 or more years of continuous service with one or more licensees.

Note:  The Statutory Declarations Regulations 1993 are accessible through the        Commonwealth of Australia law website, www.comlaw.gov.au

certified extract means an extract that has been certified as a true copy of some of the information contained in a complete original document, by one of the persons described in paragraphs (1)-(4) of the definition of ‘certified copy’ in paragraph 1.2.1 of these Rules.

correspondent banking risk means the money laundering or terrorism financing risk a financial institution may reasonably face in respect of a correspondent banking relationship.

domestic company means a company that is registered under the Corporations Act 2001 (other than a registered foreign company).

domestic listed public company means a domestic company that is a listed public company.

domestic stock exchange means a financial market prescribed by regulations made for the purposes of the definition of ‘prescribed financial market’ in the Corporations Act 2001.

domestic unlisted public company means a domestic company that is not a listed public company.

foreign company means a body corporate of the kind described in paragraph (a) of the definition of ‘foreign company’ in the Corporations Act 2001.

foreign listed public company means a foreign company that is a listed public company.

KYC information means ‘know your customer information’ and may include information in relation to matters such as:

(1)     In relation to a customer who is an individual:

(a)     the customer’s name;

(b)     the customer’s residential address;

(c)     the customer’s date of birth;

(d)    any other name that the customer is known by;

(e)     the customer’s country(ies) of citizenship;

(f)     the customer’s country(ies) of residence;

(g)     the customer’s occupation or business activities;

(h)     the nature of the customer’s business with the reporting entity – including:

(i)      the purpose of specific transactions; or

(ii)     the expected nature and level of transaction behaviour;

(i)      the income or assets available to the customer;

(j)      the customer’s source of funds including the origin of funds;

(k)     the customer’s financial position;

(l)      the beneficial ownership of the funds used by the customer with respect to the designated services; and

(m)    the beneficiaries of the transactions being facilitated by the reporting entity on behalf of the customer including the destination of funds.

(2)     In relation to a customer who is a company:

(a)     the full name of the company as registered by ASIC;

(b)         the full address of the company’s registered office;

(c)          the full address of the company’s principal place of business (if any);

(d)    the ACN issued to the company;

(e)     whether the company is registered by ASIC as a proprietary company or a public company;

(f)     the name of each director of the company;

(g)     the full business name (if any) of the company as registered under any State or Territory business names legislation;

(h)     the date upon which the company was registered by ASIC;

(i)      the name of any company secretary;

(j)      the nature of the business activities conducted by the company;

(k)     (without limiting the possible application of other items in this definition to a registered foreign company) if the company is a registered foreign company:

(i)      the full address of the company’s registered office in Australia;

(ii)     the full address of the company’s principal place of business in Australia (if any) or the full name and address of the company’s local agent in Australia;

(iii)    the ARBN issued to the company;

(iv)    the country in which the company was formed, incorporated or registered;

(v)     whether the company is registered by the relevant foreign registration body and if so whether it is registered as a proprietary or private company;

(vi)    the name of the relevant foreign registration body;

(vii)   any identification number issued to the company by the relevant foreign registration body upon the company’s formation, incorporation or registration;

(viii)  the date upon which the company was formed, incorporated or registered in its country of formation, incorporation or registration;

(ix)    the full address of the company in its country of formation, incorporation or registration as registered by the relevant foreign registration body;

(l)      (without limiting the possible application of other items in this definition to an unregistered foreign company) if the company is an unregistered foreign company:

(i)      the full name of the company;

(ii)     the country in which the company was formed, incorporated or registered;

(iii)    whether the company is registered by the relevant foreign registration body and if so:

(A)    any identification number issued to the company by the relevant foreign registration body upon the company’s formation, incorporation or registration;

(B)    the full address of the company in its country of formation, incorporation or registration as registered by the relevant foreign registration body; and

(C)    whether it is registered as a proprietary or private company;

(iv)    the full address of the company’s principal place of business in that country;

(v)     the name of the relevant foreign registration body;

(vi)    the date upon which the company was formed, incorporated or registered in its country of formation, incorporation or registration;

(vii)   the full address of the company’s principal place of business in that country; and

(m)    the name and address of any beneficial owner of the company.

(3)     In relation to a customer who is a trustee of a trust:

(a)     the full name of the trust;

(b)     the full business name (if any) of the trustee in respect of the trust;

(c)     the type of the trust;

(d)    the country in which the trust was established;

(e)     if any of the trustees is an individual – in respect of any of those individuals, the information required to be collected from an individual under the reporting entity’s customer identification program in respect of individuals;

(f)     if any of the trustees is a company in respect of any those companies, the information required to be collected from a company under the reporting entity’s customer identification program in respect of companies;

(g)     the full name and address of any trustee in respect of the trust;

(h)     the full name of any beneficiary in respect of the trust;

(i)      if the terms of the trust identify the beneficiaries by reference to membership of a class – details of the class;

(j)      the State or Territory in which the trust was established;

(k)     the date upon which the trust was established;

(l)      a certified copy or certified extract of the trust deed; and

(m)    the full name of the trust manager (if any) or settlor (if any) in respect of the trust.

(4)     In relation to a customer who is a partner of a partnership:

(a)     the full name of the partnership;

(b)     the full business name (if any) of the partnership as registered under any State or Territory business names legislation;

(c)     the country in which the partnership was established;

(d)    in respect of any partner ‑ the information required to be collected from an individual under the reporting entity’s customer identification program in respect of individuals;

(e)     the full name and residential address of any partner;

(f)     the respective share of each partner in the partnership;

(g)     the business of the partnership;

(h)     the State or Territory in which the partnership was established;

(i)      the date upon which the partnership was established; and

(j)      a certified copy or certified extract of the partnership agreement.

(5)     In relation to a customer who is an incorporated association:

(a)     the full name of the association;

(b)     the full address of the association’s principal place of administration or registered office (if any) or the residential address of the association’s public officer or (if there is no such person) the association’s president, secretary or treasurer;

(c)     any unique identifying number issued to the association upon its incorporation by the relevant registration body;

(d)    the full name of the chairman, secretary and treasurer or equivalent officer in each case of the association;

(e)     the State, Territory or country in which the association was incorporated;

(f)     the date upon which the association was incorporated;

(g)     the objects of the association;

(h)     a certified copy or certified extract of the rules of the association;

(i)      in respect of any member – the information required to be collected from an individual under the reporting entity’s customer identification program in respect of individuals; and

(j)      the full business name, if any, of the association.

(6)     In relation to a customer who is an unincorporated association:

(a)          the full name of the association;

(b)         the full address of the association’s principal place of administration (if any);

(c)          the full name of the chairman, secretary and treasurer or equivalent officer in each case of the association;

(d)         in respect of any member – the information required to be collected from an individual under the reporting entity’s customer identification program in respect of individuals;

(e)     the objects of the association;

(f)     a certified copy or certified extract of the rules of the association; and

(g)     the full business name, if any, of the association.

(7)     In relation to a customer who is a registered co‑operative:

(a)     the full name of the co‑operative;

(b)     the full address of the co‑operative’s registered office or principal place of operations (if any) or the residential address of the co‑operative’s secretary or (if there is no such person) the co‑operative’s president or treasurer;

(c)     any unique identifying number issued to the co‑operative upon its registration by the relevant registration body;

(d)    the full name of the chairman, secretary and treasurer or equivalent officer in each case of the co‑operative;

(e)          in respect of any member – the information required to be collected from an individual under the reporting entity’s customer identification program in respect of individuals;

(f)     the full business name, if any, of the co‑operative;

(g)     the State, Territory or country in which the co‑operative is registered;

(h)     the date upon which the co‑operative was registered;

(i)      the objects of the co‑operative; and

(j)      a certified copy or certified extract of the rules of the co‑operative.

(8)     In relation to a customer who is a government body:

(a)     the full name of the government body;

(b)     the full address of the government body’s principal place of operations;

(c)     whether the government body is an entity or emanation, or established under legislation, of a State, Territory, the Commonwealth or a foreign country and the name of that State, Territory or country;

(d)    information about the ownership or control of a government body that is an entity or emanation or established under legislation of a foreign country; and

(e)     the name of any legislation under which the government body was established.

listed public company means:

(1)     in the case of a domestic company – a public company that is included in an official list of a domestic stock exchange;

(2)     in the case of a registered foreign company –

(a)     a public company that is included in an official list of a domestic stock exchange; or

(b)     a public company whose shares, in whole or in part, are listed for quotation in the official list of any stock or equivalent exchange;

(3)     in the case of an unregistered foreign company – a public company whose shares, in whole or in part, are listed for quotation in the official list of any stock or equivalent exchange.

ML/TF risk means the risk that a reporting entity may reasonably face that the provision by the reporting entity of designated services might (whether inadvertently or otherwise) involve or facilitate money laundering or the financing of terrorism.

Part A means Part A of a reporting entity’s AML/CTF program.

Part B means Part B of a reporting entity’s AML/CTF program.

on‑course bookmaker means a person who carries on a business of a bookmaker or a turf commission agent at a racecourse.

online gambling service means a designated service of a kind described in table 3 of section 6 of the AML/CTF Act that is provided to a customer using any of the means referred to in paragraph 5(1)(b) of the Interactive Gambling Act 2001 and includes an excluded wagering service as defined in section 8A of the Interactive Gambling Act 2001 but does not include a “telephone betting service” as defined in section 4 of the Interactive Gambling Act 2001.

primary non‑photographic identification document means any of the following:

(1)     a birth certificate or birth extract issued by a State or Territory;

(2)     a citizenship certificate issued by the Commonwealth;

(3)     a citizenship certificate issued by a foreign government that, if it is written in a language that is not understood by the person carrying out the verification, is accompanied by an English translation prepared by an accredited translator;

(4)     a birth certificate issued by a foreign government, the United Nations or an agency of the United Nations that, if it is written in a language that is not understood by the person carrying out the verification, is accompanied by an English translation prepared by an accredited translator;

(5)     a pension card issued by Centrelink that entitles the person in whose name the card is issued, to financial benefits.

primary photographic identification document means any of the following:

(1)     a licence or permit issued under a law of a State or Territory or equivalent authority of a foreign country for the purpose of driving a vehicle that contains a photograph of the person in whose name the document is issued;

(2)     a passport issued by the Commonwealth;

(3)     a passport or a similar document issued for the purpose of international travel, that:

(a)     contains a photograph and the signature of the person in whose name the document is issued;

(b)     is issued by a foreign government, the United Nations or an agency of the United Nations; and

(c)     if it is written in a language that is not understood by the person carrying out the verification ‑ is accompanied by an English translation prepared by an accredited translator.

(4)     a card issued under a law of a State or Territory for the purpose of proving the person’s age which contains a photograph of the person in whose name the document is issued.

(5)     a national identity card issued for the purpose of identification, that:

(a)     contains a photograph and the signature of the person in whose name the document is issued;

(b)     is issued by a foreign government, the United Nations or an agency of the United Nations; and

(c)     if it is written in a language that is not understood by the person carrying out the verification ‑ is accompanied by an English translation prepared by an accredited translator;

public company means a company other than a proprietary company.

racecourse means a place where a race meeting is held by a racing club, and includes adjacent land or premises to which persons attending the meeting have access in connection with the meeting.

registered co‑operative means a body registered under legislation as a co‑operative.

registered foreign company means a foreign company that is registered under Division 2 of Part 5B.2 of the Corporations Act 2001.

relevant foreign registration body means, in respect of a registered foreign company or an unregistered foreign company, any government body that was responsible for the formation, incorporation or registration of that company in its country of formation, incorporation or registration.

reliable and independent documentation includes but is not limited to:

(1)     an original primary photographic identification document;

(2)     an original primary non‑photographic identification document; and

(3)     an original secondary identification document

Note   This is not an exhaustive definition.  A reporting entity may rely upon other documents not listed in paragraphs (1) to (3) above as reliable and independent documents, where that is appropriate having regard to ML/TF risk.

secondary identification document means any of the following:

(1)     a notice that:

(a)     was issued to an individual by the Commonwealth, a State or Territory within the preceding twelve months;

(b)     contains the name of the individual and his or her residential address; and

(c)     records the provision of financial benefits to the individual under a law of the Commonwealth, State or Territory (as the case may be);

(2)     a notice that:

(a)     was issued to an individual by the Australian Taxation Office within the preceding 12 months;

(b)     contains the name of the individual and his or her residential address; and

(c)     records a debt payable to or by the individual by or to (respectively) the Commonwealth under a Commonwealth law relating to taxation;

(3)     a notice that:

(a)     was issued to an individual by a local government body or utilities provider within the preceding three months;

(b)     contains the name of the individual and his or her residential address; and

(c)     records the provision of services by that local government body or utilities provider to that address or to that person.

(4)     In relation to a person under the age of 18, a notice that:

(a)     was issued to a person by a school principal within the preceding three months;

(b)     contains the name of the person and his or her residential address; and

(c)     records the period of time that the person attended at the school.

totalisator agency board means a board or authority established, or a company holding a licence, under a law of a State or Territory for purposes that include the purpose of operating a betting service.

unregistered foreign company means a foreign company that is not a registered foreign company.

1.2.2    In these Rules, the terms ‘ABN’, ‘ACN’, ‘ARBN’, ‘Australian financial services licence’, ‘ASIC’, ‘managed investment scheme’, ‘proprietary company’, ‘registered office’ and ‘wholesale client’ have the same respective meanings as in the Corporations Act 2001.

CHAPTER 2             

 

 

Part 2.1           Definition of ‘designated business group’

 

2.1.1    These Anti-Money Laundering and Counter-Terrorism Financing Rules      (Rules) are made pursuant to section 229 of the Anti-Money Laundering and         Counter-Terrorism Financing Act 2006 (AML/CTF Act) for the purposes of      the definition of ‘designated business group’ in section 5 of the AML/CTF            Act.

 

2.1.2    For the purposes of the definition of ‘designated business group’ in section 5         of the AML/CTF Act:

 

            (1)        an election will be made in accordance with the AML/CTF Rules if                        it is made on the approved election form and provided to AUSTRAC                        by the Nominated Contact Officer;

 

            (2)        a ‘designated business group’ is established when the approved form is                   provided to the AUSTRAC CEO by the Nominated Contact Officer or                   on such later date as is specified on that form; and

 

            (3)        the members of a designated business group must, by their Nominated                    Contact Officer, notify the AUSTRAC CEO, in writing, in the                                   approved form, of any of the following:

 

                        (a)        a withdrawal of a member from the designated business group;                               or

 

                        (b)        an election of a new member; or

 

                        (c)        the termination of the designated business group; or

 

                        (d)       any other change in the details previously notified to the                                          AUSTRAC CEO in respect of the Nominated Contact Officer                            or the designated business group;

 

                        no later than 14 business days from the date on which the withdrawal,                    election of the new member, termination or change takes effect.

 

            (4)        each member of the designated business group must be:

 

(a)        related to each other member of the group within the meaning of section 50 of the Corporations Act 2001; and either

 

(i)         a reporting entity; or

 

(ii)        a company in a foreign country which if it were resident in Australia would be a reporting entity; or

 

(b)        providing a designated service pursuant to a joint venture agreement, to which each member of the group is a party; or

 

(c)        able to satisfy the following conditions:

be

(i)         an accounting practice; or

(ii)        a person, other than an individual, which the accounting practice in (i) controls; or

(iii)       an accounting practice which is providing a designated service pursuant to a joint venture agreement, to which each member of the group is a party; or

(iv)       a person that provides or assists in the provision of a designated service to the customers of the accounting practice;

and either:

(v)        a reporting entity; or

(vi)       an entity in a foreign country which, if it were resident in Australia would be a reporting entity; or

(d)       able to satisfy the following conditions:

be

(i)         a law practice; or

(ii)        a person, other than an individual, which the law practice in (i) controls; or

(iii)       a law practice which is providing a designated service pursuant to a joint venture agreement, to which each member of the group is a party; or

(iv)       a person that provides or assists in the provision of a designated service to the customers of the law practice;

and either:

(v)        a reporting entity; or

(vi)       an entity in a foreign country which, if it were resident in Australia would be a reporting entity; or

(e)        Subject to the requirements in paragraph 2.1.2A, be a reporting entity that provides a registrable designated remittance service, either:

(i)         as a money transfer service provider; or

(ii)        as a representative of a money transfer service provider pursuant to a representation agreement with a money transfer service provider; or

(iii)       as a sub-representative of a money transfer service provider pursuant to a sub-representation agreement with the representative of the money transfer service provider.

 

2.1.2A             The following conditions apply to a reporting entity that elects to form or vary a designated business group with other reporting entities pursuant to subparagraph 2.1.2(4)(e):

 

(1)        a person who meets the criteria specified at subparagraph 2.1.2(4)(e)(i) may form or vary a designated business group with one of the following:

 

(a)        a person or persons with whom they have a representation agreement; or

 

(b)        (i)         a person with whom they have a

representation agreement; and

 

(ii)        a person or persons with whom the person described at subparagraph 2.1.2A(1)(b)(i) has a sub-representation agreement.

 

(2)        a person who meets the criteria specified at subparagraph 2.1.2(4)(e)(ii) may form or vary a designated business group with one of the following:

 

(a)        the person with whom they have a representation agreement; or

 

(b)        (i)         the person with whom they have a

representation agreement; and

 

(ii)        a person or persons who have a representation agreement with the person described at subparagraph 2.1.2A(2)(b)(i); or

 

(c)         (i)         a person or persons who meet the conditions

specified at subparagraph 2.1.2(4)(e)(iii); and

 

(ii)        with whom they have a sub-representation agreement; or

 

(d)       (i)         the person with whom they have a representation

 agreement; and

 

(ii)        (A)       a person or persons who meet the

conditions specified at subparagraph 2.1.2(4)(e)(iii); and

 

(B)       with whom they have a sub-representation agreement.

 

(3)        a person who meets the conditions specified at subparagraph 2.1.2(4)(e)(iii) may form or vary a designated business group with one of the following:

 

(a)        the person with whom they have a sub-representation agreement; or

 

(b)        (i)         the person with whom they have a

sub-representation agreement; and

 

(ii)        a person or persons who have a sub-representation agreement with the same person described at subparagraph 2.1.2A(3)(a); or

 

(c)        (i)         the person with whom they have a

sub-representation agreement; and

 

(ii)        the person with whom the person described at subparagraph 2.1.2A(3)(c)(i) has a representation agreement; or

 

(d)       (i)         the person with whom they have a

sub-representation agreement; and

 

(ii)        the person with whom the person described at subparagraph 2.1.2A(3)(d)(i) has a representation agreement; and

 

(iii)       a person or persons who have a sub-representation agreement with the same person described at subparagraph 2.1.2A(3)(d)(i).

 

 

2.1.3          In this Chapter:

 

(1)              ‘approved election form’ means Form 1 attached to these Rules;

 

(2)              ‘approved form’ for the purposes of sub-rule 2.1.2(2) means Form 2 attached to these Rules;

 

(3)              ‘approved form’ for the purposes of sub-rule 2.1.2(3) means Form 3 attached to these Rules;

 

(4)              ‘company’ has the same meaning as in the Corporations Act 2001;

 

(5)              ‘Nominated Contact Officer’ means the holder from time to time of one of the following positions:

 

(a)        an ‘officer’ as defined in the Corporations Act 2001, of a member of a designated business group; or

 

(b)        the AML/CTF Compliance Officer of a member of a  designated business group,

 

where that officer or compliance officer has been appointed by the designated business group to hold the position of the Nominated Contact Officer;

(6)              ‘accounting practice’ means a business carried on by either of the following:

(a)        an accountant (however described) that supplies                   professional accounting services; or

(b)        a partnership or company that uses accountants (however described) to supply professional accounting services;

(7)              ‘law practice’ means a business carried on by either of the following:

(a)        a legal practitioner (however described) that supplies professional legal services; or

(b)        a partnership or company that uses legal practitioners (however described) to supply professional legal services;

(8)              ‘money transfer service’ means a service, provided under a single brand, trademark or business name through which registrable designated remittance services are carried out;

 

(9)              ‘money transfer service provider’ means a person who under a representation agreement authorises a representative to offer the money transfer service on behalf of the money transfer service provider and to engage sub-representatives for the purposes of providing the money transfer service in Australia;

 

(10)            ‘representation agreement’ means the written agreement between a money transfer service provider and a representative of the money transfer service provider that states the terms on which the representative offers the money transfer service within Australia;

 

(11)            ‘representative of a money transfer service provider’ or ‘representative’ means a person who offers a money transfer service in accordance with a representation agreement with the money transfer service provider;

 

(12)            ‘sub-representation agreement’ means the written agreement between a representative of a money transfer service provider and a sub-representative of a money transfer service provider that states the terms on which the sub-representative provides the money transfer service within Australia;

 

(13)            ‘sub-representative of a money transfer service provider’ or ‘sub-representative’ means a person who is engaged by a representative of a money transfer service provider to provide a money transfer service in accordance with a sub-representation agreement.

 

 

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.

 


Form 1

 

FORM FOR SUB-PARAGRAPH 2.1.2(1) OF THE RULES: ELECTION TO BE A MEMBER OF A DESIGNATED BUSINESS GROUP

 

For the purposes of the Anti-Money Laundering and Counter-Terrorism Financing Rules made pursuant to section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and of the definition of ‘designated business group’ in section 5 of the AML/CTF Act:

 

I, [name and role/title of Y], hereby elect on behalf of Y, to be a member of [name of Designated Business Group]. I hereby confirm that:

 

(a)        Y Pty Ltd, is a reporting entity related to each member of [name of Designated     Business Group] within the meaning of section 50 of the Corporations Act    2001; or

 

(b)        Y Pty Ltd, is providing a designated service pursuant to a joint venture agreement to which each member of [name of Designated Business Group] is a party; or

 

(c)        Y Pty Ltd, is a foreign company which, if it were resident in Australia would be a reporting entity, and is, within the meaning of section 50 of the Corporations Act 2001, related to [name of related company] which is a member of [name of Designated Business Group] and which is a reporting entity; or

 

(d)       Y is a reporting entity or is an entity in a foreign country, which if it were resident in Australia would be a reporting entity, and is:

 

(i)         an accounting practice as defined in Rule 2.1.3(6); or

 

(ii)        a person, other than an individual, which the accounting practice in (i) controls; or

 

(iii)       an accounting practice which is providing a designated service pursuant to a joint venture agreement, to which each member of the [name of Designated Business Group] group is a party; or

 

(iv)       a person that provides or assists in the provision of a designated service to the customers of the accounting practice; or                             

(e)        Y is a reporting entity or is an entity in a foreign country, which if it were   resident in Australia would be a reporting entity, and is:

 

(i)         a law practice as defined in Rule 2.1.3(7); or

 

(ii)        a person, other than an individual, which the law practice in (i) controls; or

(iii)       a law practice which is providing a designated service pursuant to a joint venture agreement, to which each member of the [name of Designated Business Group] group is a party; or

(iv)       a person that provides or assists in the provision of a designated service to the customers of the law practice; or

 

(f)        Y is a reporting entity, and is a money transfer service provider as defined in Rule 2.1.3(9); or

 

(g)        Y is a reporting entity, and is a representative of a money transfer service provider as defined in Rule 2.1.3(11); or

 

(h)        Y is a reporting entity, and is a sub-representative of a money transfer service provider as defined in Rule 2.1.3(13).

 

 

 

 

DATE:


 

Form 2

 

FORM FOR SUB-PARAGRAPH 2.1.2(2) OF THE RULES: FORMATION OF A DESIGNATED BUSINESS GROUP

 

For the purposes of the Anti-Money Laundering and Counter-Terrorism Financing Rules made pursuant to section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and of the definition of ‘designated business group’ in section 5 of the AML/CTF Act:

 

I, [name and role/title of X], notify AUSTRAC that [role/title of X] is the Nominated Contact Officer of [name of Designated Business Group]. I currently hold that position. My contact details are:

 

Address:

 

Phone number:

 

Fax number:

 

Email address:

 

I [name] as the Nominated Contact Officer of [name of Designated Business Group] hereby notify AUSTRAC of the establishment of [name of Designated Business Group].

 

The following have elected to be members of [name of Designated Business Group]:

 

[name of member]

 

[name of member]

 

DATE:

 


 

Form 3

 

FORM FOR SUB-PARAGRAPH 2.1.2(3) OF THE RULES: VARIATIONS

 

For the purposes of the Anti-Money Laundering and Counter-Terrorism Financing Rules made pursuant to section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and of the definition of ‘designated business group’ in section 5 of the AML/CTF Act:

 

I, [Nominated Contact Officer of X], being the Nominated Contact Officer of [name of Designated Business Group] hereby advise the AUSTRAC CEO of the following variations to [name of Designated Business Group]:

 

(a)        [withdrawal detail];

 

(b)        [election detail];

 

(c)        [termination];

 

(d)       [any other change]

 

Election forms are attached.

 

DATE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

CHAPTER 3             

Part 3.1           Correspondent banking due diligence

3.1.1    These Anti‑Money Laundering and Counter‑Terrorism Financing Rules (Rules) are made pursuant to section 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act) for the purposes of paragraphs 97(2)(a) and 98(2)(a), subparagraphs 98(3)(a)(ii) and 98(3)(b)(ii) and subsections 98(4) and 99(1) of the AML/CTF Act.

3.1.2    For the purposes of paragraph 97(2)(a) of the AML/CTF Act, a financial institution (the first financial institution) must carry out an assessment of the following matters, where and to the extent warranted by the risk identified in accordance with subsection 97(1):

(1)    the nature of the other financial institution’s business, including its product and customer base;

(2)    the domicile of the other financial institution;

(3)    the domicile of any parent company of the other financial institution;

(4)    the existence and quality of any anti‑money laundering and counter‑terrorism financing regulation in the other financial institution’s country of domicile;

(5)    the existence and quality of any anti‑money laundering and counter‑terrorism financing regulation in the country of domicile of any parent company of the other financial institution – where the parent company has group‑wide controls and where the other financial institution operates within the requirements of those controls;

(6)    the adequacy of the other financial institution’s controls and internal compliance practices in relation to anti‑money laundering and counter‑terrorism financing;

(7)    the ownership, control and management structures of the other financial institution and any parent company, including whether a politically exposed person has ownership or control of the other financial institution or any parent company;

(8)    the other financial institution’s financial position;

(9)    the reputation and history of the other financial institution;

(10)  the reputation and history of any parent company of the other financial institution;

(11)  whether the other financial institution has been the subject of an investigation, or any criminal or civil proceedings relating to money laundering or terrorism financing.

3.1.3    For the purposes of subsection 99(1) of the AML/CTF Act, the senior officer must have regard to the due diligence assessment carried out for the purposes of paragraph 3.1.2 of these Rules.

3.1.4    For the purposes of paragraph 98(2)(a) of the AML/CTF Act, the first financial institution must carry out regular assessments of the following matters, if warranted by the risk identified in accordance with subsection 98(1):

(1)    the matters specified in paragraph 3.1.2 of these Rules;

(2)    any material changes in respect of the matters specified in paragraph 3.1.2 of these Rules;

(3)    the nature of the other financial institution’s ongoing business relationship with the first financial institution, including the types of transactions carried out as part of that relationship;

(4)    any material change in the nature of the other financial institution’s ongoing business relationship with the first financial institution, including in respect of the types of transactions carried out as part of that relationship.

3.1.5    In accordance with subsection 98(5) of the AML/CTF Act, the first financial institution is required to determine:

(1)    in respect of each correspondent banking relationship that it enters into after the commencement of section 98 – the end of the period referred to in subparagraph 98(3)(a)(ii);

(2)    in respect of each correspondent banking relationship that it has entered into before the commencement of section 98 – the end of the period referred to in subparagraph 98(3)(b)(ii); and

(3)    in respect of each of its correspondent banking relationships – the period referred to in subsection 98(4).

3.1.6    In determining the end of a period or a period for the purposes of paragraph 3.1.5 of these Rules, the first financial institution must have regard to the risk identified in accordance with subsection 98(1) of the AML/CTF Act.

Part 3.2         Anti-Money Laundering and Counter-Terrorism Financing Rules in Respect of Paragraph (e) of the Definition of ‘Correspondent Banking Relationship’ in Section 5 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006

3.2.1    These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made pursuant to section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for the purposes of paragraph (e) of the definition of ‘correspondent banking relationship’ in section 5 of the AML/CTF Act.

3.2.2    For the purposes of paragraph (e) of the definition of correspondent banking relationship in section 5 of the AML/CTF Act, all banking services that do not involve nostro or vostro accounts are specified.

 

CHAPTER 4           

Part 4.1              Introduction

4.1.1    These Rules are made pursuant to section 229 of the AML/CTF Act for the purposes of paragraphs 84(3)(b) and 85(3)(b) of the AML/CTF Act.  They specify the requirements with which Part B of a reporting entity’s standard AML/CTF program or Part B of a reporting entity’s joint AML/CTF program must comply.  The sole or primary purpose of Part B is to set out the reporting entity’s applicable customer identification procedures. Chapter 4 does not apply to pre‑commencement customers.

Appropriate Risk‑Based Systems and controls

4.1.2    Some of the requirements specified in these Rules may be complied with by a reporting entity putting in place appropriate risk‑based systems and controls.  When determining and putting in place appropriate risk‑based systems and controls, the reporting entity must have regard to the nature, size and complexity of its business and the type of ML/TF risk that it might reasonably face.

4.1.3    For the purposes of these Rules, in identifying its ML/TF risk a reporting entity must consider the risk posed by the following factors:

(1)      its customer types, including any politically exposed persons;

(2)      the types of designated services it provides;

(3)      the methods by which it delivers designated services; and

(4)      the foreign jurisdictions with which it deals.

Different requirements with respect to different kinds of customers

4.1.4    These Rules specify different requirements with which Part B must comply in relation to different kinds of customers.  Part B must comply with such requirements to the extent that a reporting entity has a customer of a particular kind.  These Rules make provision in respect of the following kinds of customers:

(1)      Individuals – Part 4.2 of these Rules;

(2)      Companies – Part 4.3 of these Rules;

(3)      Customers who act in the capacity of a trustee of a trust – Part 4.4 of these Rules;

(4)      Customers who act in the capacity of a member of a partnership – Part 4.5 of these Rules;

(5)      Incorporated or unincorporated associations – Part 4.6 of these Rules;

(6)      Registered co‑operatives – Part 4.7 of these Rules;

(7)      Government bodies – Part 4.8 of these Rules.

Verification

4.1.5    These Rules also require Part B to comply with the requirements of Part 4.9 of these Rules relating to document‑based verification and with the requirements of Part 4.10 of these Rules relating to verification from electronic data.

Agents of customers

4.1.6    Part B must comply with the requirements of Part 4.11 of these Rules in relation to any agent who is authorised to act for or on behalf of a customer in relation to a designated service.

Part 4.2              Applicable customer identification procedure with respect to individuals

4.2.1    In so far as a reporting entity has any customer who is an individual, Part B must comply with the requirements specified in Part 4.2 of these Rules.

4.2.2    Part B must include appropriate risk‑based systems and controls that are designed to enable the reporting entity to be reasonably satisfied, where a customer is an individual, that the customer is the individual that he or she claims to be.

Collection of information

4.2.3    Part B must include a procedure for the reporting entity to collect, at a minimum, the following KYC information from an individual (other than an individual who notifies the reporting entity that he or she is a customer of the reporting entity in his or her capacity as a sole trader):

(1)      the customer’s full name;

(2)      the customer’s date of birth; and

(3)      the customer’s residential address.

4.2.4    Part B must include a procedure for the reporting entity to collect, at a minimum, the following KYC information from a customer who notifies the reporting entity that he or she is a customer of the reporting entity in his or her capacity as a sole trader:

(1)      the customer’s full name;

(2)      the customer’s date of birth;

(3)      the full business name (if any) under which the customer carries on his or her business;

(4)      the full address of the customer’s principal place of business (if any) or the customer’s residential address; and

(5)      any ABN issued to the customer.

4.2.5    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether, in addition to the KYC information referred to in paragraph 4.2.3 or 4.2.4 above, any other KYC information will be collected from a customer.

Note   reporting entities should consider their obligations under other legislation, including the Privacy Act 1988 when deciding what information is required to be collected to fulfil their obligations under these Rules.

Verification of information

4.2.6    Part B must include a procedure for the reporting entity to verify, at a minimum, the following KYC information about a customer:

(1)      the customer’s full name; and

(2)      either:

(a)  the customer’s date of birth; or

(b)  the customer’s residential address.

4.2.7    Part B must require that the verification of information collected about a customer be based on:

(1)      reliable and independent documentation;

(2)      reliable and independent electronic data; or

(3)      a combination of (1) and (2) above.

4.2.8    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether, in addition to the KYC information referred to in paragraph 4.2.6 above, any other KYC information collected from the customer should be verified from reliable and independent documentation, reliable and independent electronic data or a combination of the two.

Responding to discrepancies

4.2.9    Part B must include appropriate risk‑based systems and controls for the reporting entity to respond to any discrepancy that arises in the course of verifying KYC information collected from a customer so that the reporting entity can determine whether it is reasonably satisfied that the customer is the person that he or she claims to be.

Documentation‑based safe harbour procedure where ML/TF risk is medium or lower

4.2.10  Paragraph 4.2.11 sets out one procedure for documentation‑based verification which a reporting entity may include in Part B to comply with its obligations under paragraphs 4.2.3 to 4.2.8 and 4.9.1 to 4.9.3 of these Rules where the relationship with the customer is of medium or lower ML/TF risk.  Paragraph 4.2.11 does not preclude a reporting entity from meeting the requirements of paragraphs 4.2.3 to 4.2.8 and 4.9.1 to 4.9.3 of these Rules in another way where the relationship with the customer is of medium or lower ML/TF risk.

4.2.11  Part B of an AML/CTF program that requires the reporting entity to do the following will be taken to meet the requirements of paragraphs 4.2.3 to 4.2.8 and 4.9.2 to 4.9.3 of these Rules in respect of a customer, where a reporting entity determines that the relationship with that customer is of medium or lower risk:

(1)      collect the KYC information described in paragraph 4.2.3 or 4.2.4 (as the case may be) from a customer;

(2)      verify the customer’s name and either the customer’s residential address or date of birth, or both, from:

(a)    an original or certified copy of a primary photographic identification document; or

(b)    both:

(i)       an original or certified copy of a primary non‑photographic identification document; and

(ii)      an original or certified copy of a secondary identification document; and

(3)      verify that any document produced by the customer has not expired (other than in the case of a passport issued by the Commonwealth that expired within the preceding two years).

Electronic‑based safe harbour procedure where ML/TF Risk is medium or lower

4.2.12  Paragraph 4.2.13 sets out one procedure for electronic verification which a reporting entity may follow to comply with its obligations under paragraphs 4.2.3 to 4.2.8 and 4.10.1 of these Rules where the relationship with the customer is of medium or lower ML/TF risk.  Paragraph 4.2.13 does not preclude a reporting entity from meeting the requirements of paragraphs 4.2.3 to 4.2.8 and 4.10.1 of these Rules in another way where the relationship with the customer is of medium or lower ML/TF risk.

4.2.13  Part B of an AML/CTF program that requires the reporting entity to do the following will be taken to meet the requirements of paragraphs 4.2.3 to 4.2.8 and 4.10.1 of these Rules in respect of a customer, where a reporting entity determines that the relationship with the customer is of medium or lower risk:

(1)      collect the KYC information described in paragraph 4.2.3 or 4.2.4 (as the case may be) from a customer;

(2)      verify, having regard to the matters set out in subparagraph 4.10.2(1):

(a)    the customer’s name and the customer’s residential address using reliable and independent electronic data from at least two separate data sources; and either

(b)    the customer’s date of birth using reliable and independent electronic data from at least one data source; or

(c)    that the customer has a transaction history for at least the past 3 years.

Part 4.3              Applicable customer identification procedure with respect to companies

4.3.1    In so far as a reporting entity has any customer who is a domestic or a foreign company, Part B must comply with the requirements specified in Part 4.3 of these Rules.

4.3.2    Part B must include appropriate risk‑based systems and controls that are designed to enable the reporting entity to be reasonably satisfied, where a customer is a company, that:

(1)      the company exists; and

(2)      in respect of certain companies, the name and address of any beneficial owner of the company has been provided.

Existence of the company ‑ collection of minimum information

4.3.3    Part B must include a procedure for the reporting entity to collect, at a minimum, the following KYC information from a company:

(1)      in the case of a domestic company:

(a)    the full name of the company as registered by ASIC;

(b)    the full address of the company’s registered office;

(c)    the full address of the company’s principal place of business, if any;

(d)   the ACN issued to the company;

(e)    whether the company is registered by ASIC as a proprietary or public company; and

(f)    if the company is registered as a proprietary company, the name of each director of the company;

(2)      in the case of a registered foreign company:

(a)    the full name of the company as registered by ASIC;

(b)    the full address of the company’s registered office in Australia;

(c)    the full address of the company’s principal place of business in Australia (if any) or the full name and address of the company’s local agent in Australia, if any;

(d)   the ARBN issued to the company;

(e)    the country in which the company was formed, incorporated or registered;

(f)    whether the company is registered by the relevant foreign registration body and if so whether it is registered as a private or public company or some other type of company; and

(g)    if the company is registered as a private company by the relevant foreign registration body ‑ the name of each director of the company;

(3)     in the case of an unregistered foreign company:

(a)    the full name of the company;

(b)    the country in which the company was formed, incorporated or registered;

(c)    whether the company is registered by the relevant foreign registration body and if so:

(i)       any identification number issued to the company by the relevant foreign registration body upon the company’s formation, incorporation or registration;

(ii)      the full address of the company in its country of formation, incorporation or registration as registered by the relevant foreign registration body; and

(iii)     whether it is registered as a private or public company or some other type of company by the relevant foreign registration body;

(d)   if the company is registered as a private company by the relevant foreign registration body ‑ the name of each director of the company; and

(e)    if the company is not registered by the relevant foreign registration body, the full address of the principal place of business of the company in its country of formation or incorporation.

4.3.4    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether, in addition to the KYC information referred to in paragraph 4.3.3, any other KYC information relating to the company’s existence will be collected in respect of a company.

Existence of company – verification of information

4.3.5    Part B must include a procedure for the reporting entity to verify, at a minimum, the following information about a company:

(1)      in the case of a domestic company:

(a)    the full name of the company as registered by ASIC;

(b)    whether the company is registered by ASIC as a proprietary or public company; and

(c)    the ACN issued to the company;

(2)      in the case of a registered foreign company:

(a)    the full name of the company as registered by ASIC;

(b)    whether the company is registered by the relevant foreign registration body and if so whether it is registered as a private or public company; and

(c)    the ARBN issued to the company;

(3)      in the case of an unregistered foreign company:

(a)    the full name of the company; and

(b)    whether the company is registered by the relevant foreign registration body and if so:

(i)       any identification number issued to the company by the relevant foreign registration body upon the company’s formation, incorporation or registration; and

(ii)      whether the company is registered as a private or public company.

4.3.6    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether, in addition to the KYC information referred to in paragraph 4.3.5, any other KYC information referred to in paragraph 4.3.3 or other KYC information relating to the company’s existence collected in respect of the company, should be verified.

4.3.7    In determining whether, and what, additional information will be collected and/or verified in respect of a company pursuant to paragraphs 4.3.4 and/or 4.3.6, the reporting entity must have regard to ML/TF risk relevant to the provision of the designated service.

4.3.8    If Part B includes the simplified company verification procedure described below with respect to a company that is:

(1)      a domestic listed public company;

(2)      a majority owned subsidiary of a domestic listed public company; or

(3)      licensed and subject to the regulatory oversight of a Commonwealth, State or Territory statutory regulator in relation to its activities as a company;

Part B is taken to comply with the requirements of paragraphs 4.3.5, 4.3.6 and 4.3.7 of these Rules in so far as those customers are concerned.

 

Simplified Company Verification Procedure

The reporting entity must confirm that the company is:

(1)      a domestic listed public company;

(2)      a majority owned subsidiary of a domestic listed public company; or

(3)      licensed and subject to the regulatory oversight of a Commonwealth, State or Territory statutory regulator in relation to its activities as a company;

by obtaining one or a combination of the following:

(4)      a search of the relevant domestic stock exchange;

(5)      a public document issued by the relevant company;

(6)      a search of the relevant ASIC database;

(7)      a search of the licence or other records of the relevant regulator.

 

4.3.9    (1)    Part B may include appropriate risk‑based systems and controls for the reporting entity to determine whether and in what manner to verify the existence of a foreign company by confirming that the foreign company is a foreign listed public company.

(2)    If Part B includes systems and controls of that kind, Part B must include a requirement that, in determining whether and in what manner to verify the existence of a foreign listed public company in accordance with those systems and controls, the reporting entity must have regard to ML/TF risk relevant to the provision of the designated service, including the location of the foreign stock or equivalent exchange (if any).

(3)    If Part B includes systems and controls of that kind, Part B is taken to comply with the requirements of paragraphs 4.3.5, 4.3.6 and 4.3.7 of these Rules in so far as those customers are concerned.

Beneficial owner – collection and verification of information in respect of certain companies

4.3.10  Part B must include a procedure for the reporting entity to collect the name and address of each beneficial owner (if any) of a proprietary or private company (other than a proprietary company that is licensed and subject to the regulatory oversight of a Commonwealth, State or Territory statutory regulator in relation to its activities as a company).

4.3.11  Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether and to what extent any of the information referred to in paragraph 4.3.10 should be verified.

4.3.12  Part B must include a requirement that, in determining whether and what information will be verified in respect of a company and the extent to which any information is verified pursuant to a procedure of the kind described in paragraph 4.3.11, the reporting entity must have regard to ML/TF risk relevant to the provision of the designated service.

4.3.13  Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether to collect and/or verify the name and address of each beneficial owner (if any) of:

(1)      a foreign public company;

(2)      a domestic unlisted public company; or

(3)      a company that is licensed and subject to the regulatory oversight of a Commonwealth, State or Territory statutory regulator in relation to its activities as a company.

4.3.14  Part B must include a requirement that, in determining whether to collect and/or verify the name and address of each beneficial owner (if any) of a company referred to in paragraph 4.3.13(1), the reporting entity must have regard to ML/TF risk relevant to the provision of the designated service, including the jurisdiction of incorporation of the company as well as the jurisdiction of the primary operations of the company and the location of the foreign stock or equivalent exchange (if any).

4.3.15  Part B must include a requirement that, in determining whether to collect and/or verify the name and address of each beneficial owner (if any) of a company referred to in paragraph 4.3.13(2) or 4.3.13(3), the reporting entity must have regard to ML/TF risk relevant to the provision of the designated service.

4.3.16  For the avoidance of doubt, if Part B includes systems and controls of the kind described in paragraphs 4.3.13 to 4.3.15, Part B need not comply with the requirements of paragraph 4.3.10 in so far as customers of the kind described in paragraph 4.3.13 are concerned.

Methods of verification

4.3.17  Subject to paragraph 4.3.18, Part B must require that the verification of information about a company be based as far as possible on:

(1)      reliable and independent documentation;

(2)      reliable and independent electronic data; or

(3)      a combination of (1) and (2) above.

4.3.18  For the purposes of subparagraph 4.3.17(1), ‘reliable and independent documentation’ includes a disclosure certificate that verifies information about the beneficial ownership of a company (other than a foreign company).

4.3.19  Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether to rely on a disclosure certificate to verify information about a foreign company where such information is not otherwise reasonably available.

4.3.20  Part B must include a requirement that, in determining whether to rely on a disclosure certificate to verify information in relation to a foreign company in accordance with the requirements of paragraph 4.3.19 above, the reporting entity must have regard to ML/TF risk relevant to the provision of the designated service, including the jurisdiction of incorporation of the foreign company as well as the jurisdiction of the primary operations of the foreign company and the location of the foreign stock or equivalent exchange (if any).

Responding to discrepancies

4.3.21  Part B must include appropriate risk‑based systems and controls for the reporting entity to respond to any discrepancy that arises in the course of verifying information about a company so that the reporting entity can determine whether it is reasonably satisfied about the matters referred to in subparagraphs 4.3.2(1) and (2).

Part 4.4              Applicable customer identification procedure with respect to trustees

4.4.1    In so far as a reporting entity has any customer who acts in the capacity of a trustee of a trust, Part B must comply with the requirements specified in Part 4.4 of these Rules.

4.4.2    Part B must include appropriate risk‑based systems and controls that are designed to enable the reporting entity to be reasonably satisfied, where a person notifies the reporting entity that the person is a customer of the reporting entity in the person’s capacity as the trustee of a trust, that:

(1)      the trust exists; and

(2)      the name of each trustee and beneficiary, or a description of each class of beneficiary, of the trust has been provided.

Existence of the trust ‑ collection and verification of information

4.4.3.   Part B must include a procedure for the reporting entity to collect, at a minimum, the following KYC information from a customer:

(1)      the full name of the trust;

(2)      the full business name (if any) of the trustee in respect of the trust;

(3)      the type of the trust;

(4)      the country in which the trust was established;

(5)      if any of the trustees is an individual, then in respect of one of those individuals – the information required to be collected from an individual under the applicable customer identification procedure with respect to individuals set out in Part B;

(6)      if any of the trustees is a company, then in respect of one of those companies – the information required to be collected from a company under the applicable customer identification procedure with respect to companies set out in Part B; and

(7)      if the trustees comprise individuals and companies then in respect of either an individual or a company – the information required to be collected from the individual or company (as the case may be) under the applicable customer identification with respect to the individual or company set out in Part B.

4.4.4    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether, in addition to the KYC information referred to in paragraph 4.4.3, any other KYC information relating to the trust’s existence will be collected in respect of a trust.

4.4.5    Part B must include a procedure for the reporting entity to verify, at a minimum:

(1)      the full name of the trust from a trust deed, certified copy or certified extract of the trust deed, reliable and independent documents relating to the trust or reliable and independent electronic data;

(2)      if any of the trustees is an individual, then in respect of one of those individuals – information about the individual in accordance with the applicable customer identification procedure with respect to individuals set out in Part B;

(3)      if any of the trustees is a company, then in respect of one of those companies – information about the company in accordance with the applicable customer identification procedure with respect to companies set out in Part B; and

(4)      if the trustees comprise individuals and companies then in respect of either an individual or a company – the information about the individual or company (as the case may be) in accordance with the applicable procedures  with respect to the individual or company set out in Part B.

4.4.6    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether and to what extent, in addition to the KYC information referred to in paragraph 4.4.5, any other KYC information relating to the trust’s existence collected in respect of the trust should be verified.

4.4.7.   In determining whether, and what, additional information will be collected and/or verified in respect of a trust pursuant to paragraphs 4.4.4 and/or 4.4.6, the reporting entity must have regard to ML/TF risk relevant to the provision of the designated service.

4.4.8    If Part B includes the simplified trustee verification procedure described below with respect to a trust that is:

(1)      a managed investment scheme registered by ASIC;

(2)      a managed investment scheme that is not registered by ASIC and that:

(a)    only has wholesale clients; and

(b)    does not make small scale offerings to which section 1012E of the Corporations Act 2001 applies;

(3)      registered and subject to the regulatory oversight of a Commonwealth statutory regulator in relation to its activities as a trust; or

(4)      a government superannuation fund established by legislation;

Part B is taken to comply with the requirements of paragraphs 4.4.5, 4.4.6 and 4.4.7 of these Rules in so far as those customers are concerned.

 

Simplified Trustee Verification Procedure

The reporting entity must verify that the trust is:

(1)     a managed investment scheme registered by ASIC;

(2)     a managed investment scheme that is not registered by ASIC and that:

         (a)     only has wholesale clients; and

         (b)     does not make small scale offerings to which section 1012E of the Corporations Act 2001 applies;

(3)     registered and subject to the regulatory oversight of a Commonwealth statutory regulator in relation to its activities as a trust; or

(4)     a government superannuation fund established by legislation.

 

Trustees and beneficiaries – collection and verification of information

4.4.9    Part B must include a procedure for the reporting entity to collect, at a minimum, the following KYC information from a customer (other than a trustee in respect of a trust to which paragraph 4.4.13 or 4.4.14 applies):

(1)      the full name and address of each trustee in respect of the trust; and

(2)      either:

(a)      the full name of each beneficiary in respect of the trust; or

(b)      if the terms of the trust identify the beneficiaries by reference to membership of a class – details of the class.

4.4.10  Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether, in addition to the KYC information referred to in paragraph 4.4.9, any other KYC information relating to the trustees or beneficiaries will be collected in respect of the trust.

4.4.11  Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether and, if so, in what manner to verify the name of any or each trustee or beneficiary, or details of any or each class of beneficiaries, or any other KYC information collected pursuant to a procedure of the kind described in paragraph 4.4.9, from the sources described in paragraph 4.4.15.

4.4.12  Part B must include a requirement that, in determining whether and what KYC information will be collected and/or verified in respect of a trust and the extent to which any KYC information is verified, pursuant to a procedure of the kind described in paragraphs 4.4.10 and/or 4.4.11, the reporting entity must have regard to ML/TF risk relevant to the provision of the designated service.

4.4.13  Part B need not include the requirements specified in paragraphs 4.4.9 to 4.4.12 in relation to a trust that is:

(1)        a managed investment scheme registered by ASIC;

(2)        a managed investment scheme that is not registered by ASIC and that:

(a)    only has wholesale clients; and

(b)    does not make small scale offerings to which section 1012E of the Corporations Act 2001 applies; or

(3)        a government superannuation fund established by legislation.

4.4.14  Part B need not include the requirements specified in paragraph 4.4.9 in relation to a trust that is registered and subject to the regulatory oversight of a Commonwealth statutory regulator in relation to its activities as a trust.

Methods of verification

4.4.15  Subject to paragraph 4.4.16, Part B must require that the verification of information about a trust be based on:

(1)        a trust deed, certified copy or certified extract of a trust deed;

(2)        reliable and independent documents relating to the trust;

(3)        reliable and independent electronic data; or

(4)        a combination of (1) to (3) above.

4.4.16  For the purposes of subparagraph 4.4.15(2), ‘reliable and independent documents relating to the trust’ includes a disclosure certificate that verifies information about a trust where:

(1)      the verification is for the purposes of a procedure of the kind described in paragraphs 4.4.6 or 4.4.11 of these Rules; and

(2)      the information to be verified is not otherwise reasonably available from the sources described in paragraph 4.4.15.

Responding to discrepancies

4.4.17     Part B must include appropriate risk‑based systems and controls for the reporting entity to respond to any discrepancy that arises in the course of verifying information about a customer so that the reporting entity can determine whether it is reasonably satisfied about the matters referred to in subparagraphs 4.4.2(1) and (2).

Part 4.5              Applicable customer identification procedure with respect to partners

4.5.1    In so far as a reporting entity has any customer who acts in the capacity of a partner in a partnership, Part B must comply with the requirements specified in Part 4.5 of these Rules.

4.5.2    Part B must include appropriate risk‑based systems and controls that are designed to enable the reporting entity to be reasonably satisfied, where a person notifies the reporting entity that the person is a customer of the reporting entity in the person’s capacity as a partner in a partnership, that:

(1)      the partnership exists; and

(2)      the name of each of the partners in the partnership has been provided in accordance with subparagraph 4.5.3(5).

Collection and verification of information

4.5.3    Part B must include a procedure for the reporting entity to collect, at a minimum, the following KYC information and documentation from a customer:

(1)      the full name of the partnership;

(2)      the full business name (if any) of the partnership as registered under any State or Territory business names legislation;

(3)      the country in which the partnership was established;

(4)      in respect of one of the partners ‑ the information required to be collected from an individual under the applicable customer identification procedure with respect to individuals set out in Part B; and

(5)      the full name and residential address of each partner in the partnership except where the regulated status of the partnership is confirmed through reference to the current membership directory of the relevant professional association.

4.5.4    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether, in addition to the information referred to in paragraph 4.5.3, any other KYC information will be collected in respect of a partnership.

4.5.5    Part B must include a procedure for the reporting entity to verify at a minimum:

(1)      the full name of the partnership from the partnership agreement, certified copy or certified extract of the partnership agreement, reliable and independent documents relating to the partnership or reliable and independent electronic data; and

(2)      information about one of the partners in accordance with the applicable customer identification procedure with respect to individuals set out in Part B.

4.5.6    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether, and to what extent, in addition to the KYC information referred to in paragraph 4.5.5, any other KYC information collected in respect of the partnership should be verified.

Methods of verification

4.5.7    Subject to paragraph 4.5.8, Part B must require that the verification of information about a partnership be based on:

(1)      a partnership agreement, certified copy or certified extract of a partnership agreement;

(2)      a certified copy or certified extract of minutes of a partnership meeting;

(3)      reliable and independent documents relating to the partnership;

(4)      reliable and independent electronic data; or

(5)      a combination of (1) to (4) above.

4.5.8    For the purposes of subparagraph 4.5.7(3), ‘reliable and independent documents relating to the partnership’ includes a disclosure certificate that verifies information about a partnership where:

(1)      the verification is for the purposes of a procedure of the kind described in paragraph 4.5.6 of these Rules; and

(2)      the information to be verified is not otherwise reasonably available from the sources described in paragraph 4.5.7.

Responding to discrepancies

4.5.9    Part B must include appropriate risk‑based systems and controls for the reporting entity to respond to any discrepancy that arises in the course of verifying information about a customer so that the reporting entity can determine whether it is reasonably satisfied about the matters referred to in subparagraphs 4.5.2(1) and (2).

Part 4.6              Applicable customer identification procedure with respect to associations

4.6.1    In so far as a reporting entity has any customer who is an incorporated or unincorporated association, Part B must comply with the requirements specified in Part 4.6 of these Rules.

4.6.2    Part B must include appropriate risk‑based systems and controls that are designed to enable the reporting entity to be reasonably satisfied, where a customer notifies the reporting entity that it is an incorporated or unincorporated association, that:

(1)      the association exists; and

(2)      the names of any members of the governing committee (howsoever described) of the association have been provided.

Collection and verification of information

4.6.3    Part B must include a procedure for the reporting entity to collect, at a minimum, the following KYC information from an incorporated or unincorporated association:

(1)      if the customer notifies the reporting entity that it is an incorporated association:

(a)      the full name of the association;

(b)      the full address of the association’s principal place of administration or registered office (if any) or the residential address of the association’s public officer or (if there is no such person) the association’s president, secretary or treasurer;

(c)      any unique identifying number issued to the association upon its incorporation by the State, Territory or overseas body responsible for the incorporation of the association; and

(d)     the full name of the chairman, secretary and treasurer or equivalent officer in each case of the association; and

(2)      if the person notifies the reporting entity that he or she is a customer in his or her capacity as a member of an unincorporated association:

(a)      the full name of the association;

(b)      the full address of the association’s principal place of administration (if any);

(c)      the full name of the chairman, secretary and treasurer or equivalent officer in each case of the association; and

(d)     in respect of the member – the information required to be collected from an individual under the applicable customer identification procedure with respect to individuals set out in Part B.

4.6.4    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether, in addition to the KYC information referred to in paragraph 4.6.3, any other KYC information will be collected in respect of an association.

4.6.5    Part B must include a procedure for the reporting entity to at a minimum:

(1)      if the customer is an incorporated association ‑ verify from information provided by ASIC or by the State, Territory or overseas body responsible for the incorporation of the association or from the rules or constitution of the association or from a certified copy or certified extract of the rules or constitution of the association or from reliable and independent documents relating to the association or from reliable and independent electronic data:

(a)      the full name of the incorporated association; and

(b)      any unique identifying number issued to the incorporated association upon its incorporation; and

(2)        if the customer notifies the reporting entity that he or she is a customer in his or her capacity as a member of an unincorporated association:

(a)      verify the full name (if any) of the association from the rules or constitution of the association or from a certified copy or certified extract of the rules or constitution of the association or from reliable and independent documents relating to the association or from reliable and independent electronic data; and

(b)      verify information about the member in accordance with the applicable customer identification procedure with respect to individuals set out in Part B.

4.6.6    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether and to what extent, in addition to the KYC information referred to in paragraph 4.6.5, any other KYC information collected in respect of the association should be verified.

Methods of verification

4.6.7    Subject to paragraph 4.6.8, Part B must require that the verification of information about an association be based on:

(1)      the constitution or rules of the association or a certified copy or certified extract of the constitution or rules of the association;

(2)      the minutes of meeting of the association or a certified copy or certified extract of minutes of meeting of the association;

(3)      in the case of an incorporated association, information provided by ASIC or by the State, Territory or overseas body responsible for the incorporation of the association;

(4)      reliable and independent documents relating to the association;

(5)      reliable and independent electronic data; or

(6)      a combination of (1)–(5) above.

4.6.8    For the purposes of subparagraph 4.6.7(4), ‘reliable and independent documents relating to the association’ includes a disclosure certificate that verifies information about an association where:

(1)      the verification is for the purposes of a procedure of the kind described in paragraph 4.6.6 of these Rules; and

(2)      the information to be verified is not otherwise reasonably available from the sources described in paragraph 4.6.7.

Responding to discrepancies

4.6.9    Part B must include appropriate risk‑based systems and controls for the reporting entity to respond to any discrepancy that arises in the course of verifying information about an association so that the reporting entity can determine whether it is reasonably satisfied about the matters referred to in subparagraphs 4.6.2(1) and (2).

Part 4.7              Applicable customer identification procedure with respect to registered co‑operatives

4.7.1    In so far as a reporting entity has any customer who is a registered co‑operative, Part B must comply with the requirements specified in Part 4.7 of these Rules.

4.7.2    Part B must include appropriate risk‑based systems and controls that are designed to enable the reporting entity to be reasonably satisfied, where a customer notifies the reporting entity that it is a registered co‑operative, that:

(1)      the co‑operative exists; and

(2)      the names of the chairman, secretary or equivalent officer in each case of the co‑operative have been provided.

Collection and verification of information

4.7.3    Part B must include a procedure for the reporting entity to collect, at a minimum, the following KYC information from a registered co‑operative:

(1)      the full name of the co‑operative;

(2)      the full address of the co‑operative’s registered office or principal place of operations (if any) or the residential address of the co‑operative’s secretary or (if there is no such person) the co‑operative’s president or treasurer;

(3)      any unique identifying number issued to the co‑operative upon its registration by the State, Territory or overseas body responsible for the registration of the co‑operative; and

(4)      the full name of the chairman, secretary and treasurer or equivalent officer in each case of the co‑operative.

4.7.4    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether, in addition to the information referred to in paragraph 4.7.3, any other KYC information will be collected in respect of a registered co‑operative.

4.7.5    Part B must include a procedure for the reporting entity to, at a minimum, verify from information provided by ASIC or by the State, Territory or overseas body responsible for the registration of the co‑operative or from any register maintained by the co‑operative or a certified copy or certified extract of any register maintained by the co‑operative or from reliable and independent documents relating to the co‑operative or from reliable and independent electronic data:

(1)      the full name of the co‑operative; and

(2)      any unique identifying number issued to the co‑operative upon its registration.

4.7.6    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether and to what extent, in addition to the KYC information referred to in paragraph 4.7.5, any other KYC information relating to the registered co‑operative should be verified.

Methods of verification

4.7.7    Subject to paragraph 4.7.8, Part B must require that the verification of information about a registered co‑operative be based on:

(1)      any register maintained by the co‑operative or a certified copy or certified extract of any register maintained by the co‑operative;

(2)      any minutes of meeting of the co‑operative or a certified copy or certified extract of any minutes of meeting of the co‑operative;

(3)      information provided by the State, Territory or overseas body responsible for the registration of the co‑operative;

(4)      reliable and independent documents relating to the co‑operative;

(5)      reliable and independent electronic data; or

(6)      a combination of (1)–(5) above.

4.7.8    For the purposes of subparagraph 4.7.7(4), ‘reliable and independent documents relating to the co‑operative’ includes a disclosure certificate that verifies information about a registered co‑operative where:

(1)      the verification is for the purposes of a procedure of the kind described in paragraph 4.7.6 of these Rules; and

(2)      the information to be verified is not otherwise reasonably available from the sources described in paragraph 4.7.7.

Responding to discrepancies

4.7.9    Part B must include appropriate risk‑based systems and controls for the reporting entity to respond to any discrepancy that arises in the course of verifying information about a registered co‑operative so that the reporting entity can determine whether it is reasonably satisfied about the matters referred to in subparagraphs 4.7.2(1) and (2).

Part 4.8              Applicable customer identification procedure with respect to government bodies

4.8.1    In so far as a reporting entity has any customer who is a government body Part B must comply with the requirements specified in Part 4.8 and (in so far as they are applicable) Parts 4.9 and 4.10.

4.8.2    Part B must include appropriate risk‑based systems and controls that are designed to enable the reporting entity to be reasonably satisfied, where a customer notifies the reporting entity that it is a government body, that:

(1)      the government body exists; and

(2)      in the case of certain kinds of government bodies –information about the beneficial ownership of the government body has been provided, where sought by the reporting entity.

Collection and verification of information

4.8.3    Part B must include a procedure for the reporting entity to collect, at a minimum, the following KYC information from a government body:

(1)      the full name of the government body;

(2)      the full address of the government body’s principal place of operations;

(3)      whether the government body is an entity or emanation, or is established under legislation, of the Commonwealth; and

(4)      whether the government body is an entity or emanation, or is established under legislation, of a State, Territory, or a foreign country and the name of that State, Territory or country.

4.8.4    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether, in addition to the KYC information referred to in paragraph.4.8.3 above, any other KYC information will be collected in respect of a government body.

4.8.5    Part B must include a procedure for the reporting entity to verify the information collected under paragraph 4.8.3 from reliable and independent documentation, reliable and independent electronic data or a combination of both.

4.8.6    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether, in addition to carrying out the procedure described in paragraph 4.8.5, any KYC information collected under paragraph 4.8.4 should be verified.

Beneficial ownership in respect of foreign government entities

4.8.7    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether to collect any KYC information about the ownership or control of a government body that is an entity or emanation, or is established under legislation, of a foreign country.

4.8.8    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether to verify any KYC information collected pursuant to a procedure of the kind described in paragraph 4.8.7 from reliable and independent documentation, reliable and independent electronic data or a combination of both.

Responding to discrepancies

4.8.9    Part B must include appropriate risk‑based systems and controls for the reporting entity to respond to any discrepancy that arises in the course of verifying information about a government body so that the reporting entity can determine whether it is reasonably satisfied about the matters referred to in subparagraphs 4.8.2(1) and (2).

Part 4.9              Verification from documentation

Verification with respect to individuals

4.9.1    In so far as Part B provides for the verification of KYC information collected from a customer who is an individual by means of reliable and independent documentation, Part B must comply with the requirements specified in paragraphs 4.9.2 and 4.9.3.

4.9.2    Part B must require that the reporting entity be satisfied that any document from which the reporting entity verifies KYC information collected from a customer has not expired (other than in the case of a passport issued by the Commonwealth that expired within the preceding two years).

4.9.3    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine:

(1)      what reliable and independent documentation the reporting entity will require a customer to produce for the purpose of verifying the customer’s name and date of birth and/or residential address (as the case may be);

(2)      if any other KYC information collected from a customer is to be verified – what reliable and independent documentation may be used to verify that information;

(3)      whether, and in what circumstances, the reporting entity is prepared to rely upon a copy of a reliable and independent document;

(4)      in what circumstances a reporting entity will take steps to determine whether a document produced by a customer may have been forged, tampered with, cancelled or stolen and, if so, what steps the reporting entity will take to establish whether or not the document has been forged, tampered with, cancelled or stolen;

(5)      whether the reporting entity will use any authentication service that may be available in respect of a document; and

(6)      whether, and how, to confirm KYC information collected from a customer by independently initiating contact with the person that the customer claims to be.

Verification with respect to persons other than individuals

4.9.4    In so far as Part B provides for the verification of KYC information about a customer who is not an individual by means of reliable and independent documentation, Part B must comply with the requirements specified in paragraph 4.9.5.

4.9.5    Part B must include appropriate risk‑based systems and controls for the reporting entity to determine:

(1)      what and how many reliable and independent documents the reporting entity will use for the purpose of verification;

(2)      whether a document is sufficiently contemporaneous for use in verification;

(3)      whether, and in what circumstances, the reporting entity is prepared to rely upon a copy of a reliable and independent document;

(4)      in what circumstances the reporting entity will take steps to determine whether a document produced by a customer may have been cancelled, forged, tampered with or stolen and, if so, what steps the reporting entity will take to establish whether or not the document has been cancelled, forged, tampered with or stolen;

(5)      whether the reporting entity will use any authentication service that may be available in respect of a document; and

(6)      whether, and how, to confirm information about a customer by independently initiating contact with the customer.

Part 4.10            Verification from reliable and independent electronic data

4.10.1  In so far as Part B provides for the verification of KYC information collected from a customer by means of reliable and independent electronic data, Part B must comply with the requirements specified in paragraph 4.10.2.

4.10.2  Part B must include appropriate risk‑based systems and controls for the reporting entity to determine:

(1)      whether the electronic data is reliable and independent, taking into account the following factors:

(a)    the accuracy of the data;

(b)    how secure the data is;

(c)    how the data is kept up‑to‑date;

(d)   how comprehensive the data is (for example, by reference to the range of persons included in the data and the period over which the data has been collected);

(e)    whether the data has been verified from a reliable and independent source;

(f)    whether the data is maintained by a government body or pursuant to legislation; and

(g)    whether the electronic data can be additionally authenticated; and

(2)      what reliable and independent electronic data the reporting entity will use for the purpose of verification;

(3)      the reporting entity’s pre‑defined tolerance levels for matches and errors; and

(4)      whether, and how, to confirm KYC information collected from a customer by independently initiating contact with the person that the customer claims to be.

Part 4.11            Agents of customers

Agents of customers who are individuals

4.11.1  For the purposes of paragraph 89(1)(b) and 89(2)(b) of the AML/CTF Act, paragraphs 4.11.2 to 4.11.4 of these Rules apply in relation to an agent of a customer who is an individual where that agent is authorised to act for or on behalf of the customer in relation to a designated service.

4.11.2  Part B must include a procedure for the reporting entity to collect, at a minimum, the following information and documentation (if any) from the customer:

(1)      the full name of each individual who purports to act for or on behalf of the customer with respect to the provision of a designated service by the reporting entity; and

(2)      evidence (if any) of the customer’s authorisation of any individual referred to in subparagraph 4.11.2(1).

4.11.3  Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether, and to what extent, it should verify the identity of any of the individuals referred to in subparagraph 4.11.2(1).

4.11.4  Part B must require the reporting entity to have regard to the ML/TF risk relevant to the provision of the designated service for the purposes of determining whether, and to what extent, it should verify the identity of any of the individuals referred to in paragraph 4.11.2(1).

4.11.5  For the purposes of paragraph 89(1)(b) and 89(2)(b)of the AML/CTF Act, paragraphs 4.11.6 to 4.11.8 of these Rules apply in relation to an agent of a customer who is not acting in his or her capacity as an individual where that agent is authorised to act for or on behalf of the customer in relation to a designated service.

4.11.6  Part B must include a procedure for the reporting entity to collect, at a minimum, the following information and documentation from the customer:

(1)      the full name of each individual who purports to act for or on behalf of the customer with respect to the provision of a designated service by the reporting entity; and

(2)      evidence of the customer’s authorisation of any individual referred to in subparagraph 4.11.6(1).

4.11.7  Part B must include appropriate risk‑based systems and controls for the reporting entity to determine whether, and to what extent, it should verify the identity of any of the individuals referred to in subparagraph 4.11.6(1).

4.11.8  Part B must require the reporting entity to have regard to the ML/TF risk relevant to the provision of the designated service for the purposes of determining whether, and to what extent, it should verify the identity of any of the individuals referred to in subparagraph 4.11.6(1).

Verifying officers and agents of non‑natural customers

4.11.9  Part B may provide for an agent of a customer who is a non‑natural person to be identified by the customer’s verifying officer, provided the requirements in paragraphs 4.11.12 to 4.11.13 are met.

4.11.10  In so far as:

(1)      Part B provides for an agent of a non‑natural customer to be identified by a verifying officer; and

(2)      the requirements in paragraphs 4.11.12 to 4.11.13 of these Rules are met;

Part B need not apply the requirements in 4.11.6 to 4.11.8 of these Rules in relation to that agent.

Appointment of a verifying officer

4.11.11  A verifying officer is a person appointed by a customer to act as a verifying officer for the purposes of these Rules.  A person may be appointed as a verifying officer if he or she is an employee, agent or contractor of the customer.

Identification by a verifying officer

4.11.12  Where Part B provides for an agent to be identified by a verifying officer, Part B must include a requirement for:

(1)      the agent to be identified by the customer’s verifying officer in accordance with paragraph 4.11.13 of these Rules;

(2)      the verifying officer to be identified and verified by the reporting entity in accordance with the requirements specified in Chapter 4 of these Rules;

(3)      the reporting entity to be provided with evidence of the customer’s authorisation of the verifying officer to act as a verifying officer;

(4)      the verifying officer to make and for the customer to retain, a record of all matters collected pursuant to paragraph 4.11.13; and

(5)      the verifying officer to provide the following to the reporting entity:

(a)      the full name of the agent; and

(b)      a copy of the signature of the agent.

4.11.13  A verifying officer will be taken to have identified an agent if he or she has collected the following:

(1)      the full name of the agent;

(2)      the title of the position or role held by the agent with the customer;

(3)      a copy of the signature of the agent; and

(4)      evidence of the agent’s authorisation to act on behalf of the customer.

CHAPTER 5           

Part 5.1              Special anti‑money laundering and counter‑terrorism financing (AML/CTF) program

5.1.1    These Anti‑Money Laundering and Counter‑Terrorism Financing Rules (Rules) are made pursuant to section 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act) for the purposes of paragraph 86(1)(c) of that Act.  They specify the requirements with which a special AML/CTF program must comply.

5.1.2    A reporting entity must have a special AML/CTF program where all of the designated services it provides are covered by item 54 of table 1 in section 6 of the AML/CTF Act.  The sole or primary purpose of a special program is to set out the reporting entity’s applicable customer identification procedures.  Chapter 5 does not apply to pre‑commencement customers.

Part 5.2              Applicable customer identification procedures in relation to special AML/CTF program

5.2.1    The requirements with which a special AML/CTF program must comply are the requirements that are specified in the Rules in Chapter 4 with respect to Part B of a standard AML/CTF program and Part B of a joint AML/CTF program.

5.2.2    For the avoidance of doubt, the requirements specified in the Rules in Chapter 4 apply with respect to a special AML/CTF program as if any reference in those paragraphs to ‘Part B’ includes a reference to ‘a special AML/CTF program.’

5.2.3    Paragraphs 4.11.1 and 4.11.5 of the Rules in Chapter 4 apply with respect to a special AML/CTF Program as if the rule were made under paragraph 89(3)(b) of the AML/CTF Act.

CHAPTER 6           

Part 6.1              Verification of identity of customers

6.1.1    These Anti‑Money Laundering and Counter‑Terrorism Financing Rules (Rules) are made pursuant to subsection 29(2), subsection 31(2), subparagraph 35(1)(b)(ii), subsection 35(2) and section 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act).

Part 6.2              Verification of the identity of customers for the purposes of section 35

6.2.1    For the purposes of subparagraph 35(1)(b)(ii) of the AML/CTF Act, section 35 will apply to a reporting entity in circumstances where the reporting entity suspects on reasonable grounds that the customer is not the person that he or she claims to be.

6.2.2    Where the circumstance specified in paragraph 6.2.1 above comes into existence, the specified action for the purposes of subsection 35(2) of the AML/CTF Act is set out at paragraph 6.2.3 below.

6.2.3    The reporting entity must, within 14 days commencing after the day on which the circumstance specified in paragraph 6.2.1 above comes into existence, take one or more of the actions specified below:

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

(2)      verify, from a reliable and independent source, certain KYC information that has been obtained in respect of the customer;

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

Part 6.3              Verification of the identity of pre‑commencement customers

6.3.1    For the purposes of subsection 29(2) of the AML/CTF Act, the specified action is as set out in paragraph 6.3.2.

6.3.2    The reporting entity must, within 14 days commencing after the day on which the suspicious matter reporting obligation arose, take one or more of the actions specified below:

(1)      carry out the applicable customer identification procedure unless the reporting entity has previously carried out or been deemed to have carried out that procedure or a comparable procedure;

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

(3)      verify, from a reliable and independent source, certain KYC information that has been obtained in respect of the customer;

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

Part 6.4              Verification of the identity of low‑risk service customers

6.4.1    For the purposes of subsection 31(2) of the AML/CTF Act, the specified action is as set out in paragraph 6.4.2 below.

6.4.2    The reporting entity must, within 14 days starting after the day on which the suspicious matter reporting obligation arose, take one or more of the actions specified below:

(1)      carry out the applicable customer identification procedure unless the reporting entity has previously carried out or been deemed to have carried out that procedure or a comparable procedure;

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

(3)      verify, from a reliable and independent source, certain KYC information that has been obtained in respect of the customer;

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

CHAPTER 7         

Part 7.1              Applicable customer identification procedures deemed to have been carried out by a reporting entity

7.1.1    These Anti‑Money Laundering and Counter‑Terrorism Financing Rules (Rules) are made pursuant to sections 38 and 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act).

7.1.2    For the purposes of these Rules:

the first reporting entity means the reporting entity referred to in paragraph 38(a) of the AML/CTF Act; and

the second reporting entity means the reporting entity referred to in paragraph 38(c) of the AML/CTF Act.

Part 7.2              Licensed financial advisers

7.2.1    A circumstance for the purposes of paragraph 38(b) of the AML/CTF Act is that the first reporting entity has provided a designated service within the meaning of item 54 of table 1 of section 6 of the AML/CTF Act to a particular customer.

7.2.2    In relation to the circumstances specified in paragraph 7.2.1, the following are conditions for the purposes of paragraph 38(d) of the AML/CTF Act:

(1)     the designated service referred to in paragraph 7.2.1 involved the first reporting entity making arrangements for the customer to receive a designated service from the second reporting entity;

(2)     the second reporting entity has obtained a copy of the record made by the first reporting entity in accordance with subsection 112(2) of the AML/CTF Act in respect of the customer or under an agreement in place for the management of identification or other records, the second reporting entity has access to the record made by the first reporting entity in accordance with subsection 112(2); and

(3)     the second reporting entity has determined that it is appropriate for it to rely upon the applicable customer identification procedure carried out by the first reporting entity having regard to the ML/TF risk faced by the second reporting entity relevant to the provision of the designated service to the customer.

Part 7.3              Designated business groups

7.3.1    A circumstance for the purposes of paragraph 38(b) is that the first reporting entity is a member of a designated business group as defined in section 5 of the AML/CTF Act.

7.3.2    In relation to the circumstance specified in paragraph 7.3.1, the following are conditions for the purposes of paragraph 38(d) of the AML/CTF Act:

(1)     at the time when the customer referred to in paragraph 7.3.1 becomes a customer of the second reporting entity, or at any other time when a customer is required to undergo the applicable customer identification procedure by the second reporting entity, the second reporting entity is a member of the same designated business group to which the first reporting entity belongs;

(2)     the second reporting entity has obtained a copy of the record made by the first reporting entity in accordance with subsection 112(2) of the AML/CTF Act in respect of the customer or under an agreement in place for the management of identification or other records, the second reporting entity has access to the record made by the first reporting entity in accordance with subsection 112(2); and

(3)     the second reporting entity has determined that it is appropriate for it to rely upon the applicable customer identification procedure carried out by the first reporting entity having regard to the ML/TF risk faced by the second reporting entity relevant to the provision of the designated service to the customer.

CHAPTER 8         

Part 8.1           Part A of a standard anti‑money laundering and counter‑terrorism financing (AML/CTF) program

8.1.1    These Anti‑Money Laundering and Counter‑Terrorism Financing Rules (Rules) are made pursuant to section 229 and (in relation to these Rules in 8.1 to 8.7) paragraph 84(2)(c) of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act).  Part 7 of the AML/CTF Act obliges a reporting entity to adopt and maintain an AML/CTF program relating to the provision of designated services.  A standard AML/CTF program is a program that applies to a particular reporting entity.  Standard AML/CTF programs are divided into Parts A and B.

8.1.2    The primary purpose of Part A of a standard AML/CTF program is to identify, manage and mitigate money laundering or terrorism financing (ML/TF) risk a reporting entity may reasonably face in relation to the provision by the reporting entity of designated services at or through a permanent establishment in Australia.  These Rules set out the requirements with which Part A of a standard AML/CTF program must comply.

The risk‑based approach and ML/TF risk

8.1.3    Some of the requirements specified in these Rules may be complied with by a reporting entity putting in place appropriate risk‑based systems or controls.  When determining and putting in place appropriate risk‑based systems or controls, the reporting entity must have regard to the nature, size and complexity of its business and the type of ML/TF risk that it might reasonably face.

8.1.4    For the purposes of these Rules, in identifying its ML/TF risk a reporting entity must consider the risk posed by the following factors:

(1)      its customer types, including any politically exposed persons;

(2)      the types of designated services it provides;

(3)      the methods by which it delivers designated services; and

(4)      the foreign jurisdictions with which it deals.

8.1.5    Part A must be designed to enable the reporting entity to:

(1)      identify significant changes in ML/TF risk for the purposes of its Part A and Part B programs;

(2)      recognise such changes in ML/TF risk for the purposes of the requirements of its Part A and Part B programs; and

(3)      assess the ML/TF risk posed by:

(a)        all new designated services prior to introducing them to the market;

(b)       all new methods of designated service delivery prior to adopting them; and

(c)        all new or developing technologies used for the provision of a designated service prior to adopting them.

8.1.6    Part A must include a requirement that, in determining what is an appropriate risk‑based procedure for inclusion in Part B or the reporting entity’s standard AML/CTF program, the reporting entity must have regard to ML/TF risk relevant to the provision of the designated service.

Application

8.1.7    Unless otherwise provided in the AML/CTF Act or these Rules, a reporting entity must apply Part A to all areas of its business that are involved in the provision of a designated service, including in relation to any function carried out by a third party.

Part 8.2              AML/CTF risk awareness training program

8.2.1    Part A must include an AML/CTF risk awareness training program that meets the requirements of paragraphs 8.2.2 to 8.2.3 below.

8.2.2    The AML/CTF risk awareness training program must be designed so that the reporting entity gives its employees appropriate training at appropriate intervals, having regard to ML/TF risk it may reasonably face.

8.2.3    The AML/CTF training program must be designed to enable employees to understand:

(1)     the obligations of the reporting entity under the AML/CTF Act and Rules;

(2)     the consequences of non‑compliance with the AML/CTF Act and Rules;

(3)     the type of ML/TF risk that the reporting entity might face and the potential consequences of such risk; and

(4)     those processes and procedures provided for by the reporting entity’s AML/CTF program that are relevant to the work carried out by the employee.

Part 8.3              Employee due diligence program

8.3.1    Part A must include an employee due diligence program that meets the requirements of paragraphs 8.3.2 to 8.3.4 of these Rules.

8.3.2    The employee due diligence program must put in place appropriate risk‑based systems and controls for the reporting entity to determine whether to, and in what manner to, screen any prospective employee who, if employed, may be in a position to facilitate the commission of a money laundering or financing of terrorism offence in connection with the provision of a designated service by the reporting entity.

8.3.3    The employee due diligence program must include appropriate risk‑based systems and controls for the reporting entity to determine whether to, and in what manner to, re‑screen an employee where the employee is transferred or promoted and may be in a position to facilitate the commission of a money laundering or financing of terrorism offence in connection with the provision of a designated service by the reporting entity.

8.3.4    The employee due diligence program must establish and maintain a system for the reporting entity to manage any employee who fails, without reasonable excuse, to comply with any system, control or procedure established in accordance with Part A or Part B.

Note   Reporting entities should note the Privacy Commissioner’s information sheet in relation to the handling of employee information.

Part 8.4              Oversight by boards and senior management

8.4.1    A reporting entity’s Part A program must be approved by its governing board and senior management.  Part A must also be subject to the ongoing oversight of the reporting entity’s board and senior management.  Where the reporting entity does not have a board, Part A must be approved and overseen by its chief executive officer or equivalent.

Part 8.5              AML/CTF Compliance Officer

8.5.1    Part A must provide for the reporting entity to designate a person as the ‘AML/CTF Compliance Officer’ at the management level.  The AML/CTF Compliance Officer may have other duties.

Part 8.6              Independent review

8.6.1    Part A must be subject to regular independent review.  The review may be carried out by either an internal or external party.

8.6.2    The purpose of the review should be to:

(1)      assess the effectiveness of the Part A program having regard to the ML/TF risk of the reporting entity;

(2)      assess whether the Part A program complies with these Rules;

(3)      assess whether the Part A program has been effectively implemented; and

(4)      assess whether the reporting entity has complied with its Part A program.

8.6.3    The result of the review, including any report prepared, must be provided to the governing board and senior management.

Part 8.7           AUSTRAC feedback

8.7.1    Part A must include appropriate procedures for the reporting entity to have regard to any feedback provided by AUSTRAC in respect of the reporting entity’s performance on the management of ML/TF risk.

Part 8.8              Permanent establishments in a foreign country

8.8.1    The Rules in part 8.8 are made pursuant to section 229 of the AML/CTF Act for the purposes of paragraph 84(2)(b) of that Act.  The Rules in part 8.8 apply to a reporting entity in respect of any permanent establishment in a foreign country at or through which it provides designated services.

8.8.2    Subject to 8.8.3 below, Part A of a reporting entity’s AML/CTF program must include systems and controls that meet the obligations under the AML/CTF Act that apply to the provision by the reporting entity of designated services at or through a permanent establishment of the reporting entity in a foreign country.

8.8.3    Where a reporting entity’s permanent establishment in a foreign jurisdiction is regulated by anti‑money laundering and counter‑terrorism financing laws comparable to Australia, only minimal additional systems and controls need to be considered.

8.8.4    The requirements in parts 8.4 to 8.7 of these Rules apply in relation to a permanent establishment in a foreign country at or through which a reporting entity provides designated services.  The requirements in parts 8.1 to 8.3 of these Rules do not apply in relation to a permanent establishment in a foreign country at or through which a reporting entity provides designated services.

CHAPTER 9        

Part 9.1              Part A of a joint anti‑money laundering and counter‑terrorism financing (AML/CTF) program

9.1.1    These Anti‑Money Laundering and Counter‑Terrorism Financing Rules (Rules) are made pursuant to section 229 and (in relation to these Rules in 9.1 to 9.7) paragraph 85(2)(c) of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act).  Part 7 of the AML/CTF Act obliges a reporting entity to adopt and maintain an AML/CTF program relating to the provision of designated services.  A joint AML/CTF program is a program that applies to each reporting entity that from time to time belongs to a designated business group.  Joint AML/CTF programs are divided into Parts A and B.

9.1.2    The primary purpose of Part A of a joint AML/CTF program is to identify, manage and mitigate ML/TF risk faced by each reporting entity (in a designated business group) in relation to the provision by the reporting entity of designated services at or through a permanent establishment in Australia.  These Rules set out the requirements with which Part A of a joint AML/CTF program must comply.

The risk‑based approach and ML/TF risk

9.1.3    Some of the requirements specified in these Rules may be complied with by putting in place appropriate risk‑based systems and controls.  In determining and putting in place appropriate risk‑based systems and controls, Part A must have regard to the following factors in relation to each reporting entity in the designated business group:

(1)      the nature, size and complexity of business; and

(2)      the type of ML/TF risk that might be reasonably faced.

9.1.4    For the purposes of these Rules, in identifying the ML/TF risk, Part A must take account of the risk posed by the following factors in relation to each reporting entity in the designated business group:

(1)      the customer types, including any politically exposed persons;

(2)      the types of designated services provided;

(3)      the methods by which designated services are delivered; and

(4)      the foreign jurisdictions dealt with.

9.1.5    Part A must be designed to enable:

(1)      significant changes in ML/TF risk to be identified for the purposes of the group’s Part A and Part B programs;

(2)      such changes in ML/TF risk to be recognised for the purposes of the requirements of the group’s Part A and Part B programs; and

(3)      the ML/TF risk posed by the following to be assessed:

(a)    all new designated services prior to introducing them to the market;

(b)    all new methods of designated service delivery prior to adopting them; and

(c)    all new or developing technologies used for the provision of a designated service prior to adopting them.

9.1.6    Part A must include a requirement that, in determining what is an appropriate risk‑based procedure for inclusion in Part B of the reporting entity’s joint AML/CTF program, the reporting entity must have regard to ML/TF risk relevant to the provision of the designated service.

Application

9.1.7    Unless otherwise provided in the AML/CTF Act or these Rules, each reporting entity in the designated business group must apply Part A to all areas of its business that are involved in the provision of a designated service, including in relation to any function carried out by a third party.

Part 9.2              AML/CTF risk awareness training program

9.2.1    Part A must include an AML/CTF risk awareness training program that meets the requirements of paragraphs 9.2.2 and 9.2.3 below.

9.2.2    The AML/CTF risk awareness training program must be designed so that each reporting entity gives its employees appropriate training at appropriate intervals, having regard to ML/TF risk it may reasonably face.

9.2.3    The AML/CTF training program must be designed to enable employees to understand:

(1)      the obligations of the reporting entity under the AML/CTF Act and Rules;

(2)      the consequences of non‑compliance with the AML/CTF Act and Rules;

(3)      the type of ML/TF risk that the reporting entity might face and the potential consequences of such risk; and

(4)      those processes and procedures provided for by the reporting entity’s AML/CTF program that are relevant to the work carried out by the employee.

Part 9.3              Employee due diligence program

9.3.1    Part A must include an employee due diligence program that meets the requirements of paragraphs 9.3.2 to 9.3.4 of these Rules.

9.3.2    The employee due diligence program must put in place appropriate risk‑based systems and controls for each reporting entity to determine whether to, and in what manner to, screen any prospective employee who, if employed, may be in a position to facilitate the commission of a money laundering or financing of terrorism offence in connection with the provision of a designated service by the reporting entity.

9.3.3    The employee due diligence program must include appropriate risk‑based systems and controls for each reporting entity to determine whether to, and in what manner to, re‑screen an employee where the employee is transferred or promoted and may be in a position to facilitate the commission of a money laundering or financing of terrorism offence in connection with the provision of a designated service by the reporting entity.

9.3.4    The employee due diligence program must establish and maintain a system for each reporting entity to manage any employee who fails, without reasonable excuse, to comply with any system, control or procedure established in accordance with Part A or Part B.

Part 9.4              Oversight by boards and senior management

9.4.1    Except where paragraph 9.4.2 applies, the Part A program must be approved by the governing board and senior management of each reporting entity in the designated business group.  Part A must also be subject to the ongoing oversight of each reporting entity’s board and senior management.  Where the reporting entity does not have a board, Part A must be approved and overseen by its chief executive officer or equivalent.

9.4.2    Where each member of a designated business group is related to the other members, the Part A program may be approved by and subject to the ongoing oversight of the governing board and senior management of the main holding company of the group.

Part 9.5              AML/CTF Compliance Officer

9.5.1    Part A program must provide for the designated business group to designate a person as the ‘AML/CTF Compliance Officer’ at the management level.  The AML/CTF Compliance Officer may have other duties.

Part 9.6              Independent review

9.6.1    Part A must be subject to regular independent review.  The review may be carried out by either an internal or external party.

9.6.2    The purpose of the review should be to:

(1)      assess the effectiveness of the Part A program having regard to the ML/TF risk of each reporting entity in the designated business group;

(2)      assess whether the Part A program complies with these Rules;

(3)      assess whether the Part A program has been effectively implemented; and

(4)      assess whether each reporting entity in the designated business group has complied with its Part A program.

9.6.3    The result of the review, including any report prepared, must be provided to senior management of each reporting entity in the designated business group.

Part 9.7              AUSTRAC feedback

9.7.1    Part A must include appropriate procedures for each reporting entity in the designated business group to have regard to any feedback provided by AUSTRAC in respect of the reporting entity’s performance on the management of ML/TF risk.

Part 9.8              Permanent establishments in a foreign country

9.8.1    The Rules in 9.8 are made pursuant to section 229 of the AML/CTF Act for the purposes of paragraph 85(2)(b) of that Act.  The Rules in 9.8 apply to those reporting entities in the designated business group that provide designated services at or through a permanent establishment in a foreign country.

9.8.2    Subject to 9.8.3, Part A of a reporting entity’s AML/CTF program must include systems and controls that meet the obligations under the AML/CTF Act that apply to the provision by the reporting entity of designated services at or through a permanent establishment of the reporting entity in a foreign country.

9.8.3    Where a reporting entity’s permanent establishment in a foreign jurisdiction is regulated by anti‑money laundering and counter‑terrorism financing laws comparable to Australia, only minimal additional systems and controls need to be considered.

9.8.4       The requirements in parts 9.4 to 9.7 of these Rules apply in relation to a permanent establishment in a foreign country at or through which a reporting entity provides designated services.  The requirements in parts 9.1 to 9.3 of these Rules do not apply in relation to a permanent establishment in a foreign country at or through which a reporting entity provides designated services.

CHAPTER 10        

Part 10.1            Casinos

10.1.1  These Anti‑Money Laundering and Counter‑Terrorism Financing Rules (Rules) are made pursuant to section 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act).

10.1.2  These Rules at paragraphs 10.1.3 to 10.1.8 apply with respect to designated services provided by casinos other than online gambling services.

Customer identification

10.1.3  These Rules at paragraphs 10.1.4 to 10.1.6 are made pursuant to subsection 39(4) of the AML/CTF Act.

10.1.4  Subject to paragraph 10.1.6 of these Rules, the provisions in Division 4 of Part 2 of the AML/CTF Act do not apply in respect of a designated service that:

(1)     is of a kind described in items 1, 2, 4, 6, 7, 8 or 9 of table 3 of section 6; and

(2)     involves an amount less than $10,000.

10.1.5  Subject to paragraph 10.1.6 of these Rules, the provisions in Division 4 of Part 2 of the AML/CTF Act do not apply in respect of a designated service that is of a kind described in items 1, 2, 4, 6 or 9 of table 3 of section 6 where the service:

(1)     involves an amount of $10,000 or more; and

(2)     involves the customer giving or receiving only gaming chips or tokens.

10.1.6  The exemptions in paragraphs 10.1 4 and 10.1.5 of these Rules do not apply in circumstances where a reporting entity determines in accordance with its enhanced customer due diligence program that it should obtain and verify any KYC information in respect of a customer in accordance with its customer identification program.

Verification of identity

10.1.7  The requirements specified in paragraphs 6.2.3, 6.3.2 and 6.4.2 of these Rules are modified as follows in respect of a reporting entity that is a casino:

(1)     the specified action in paragraph 6.2.3 must be taken within 14 days starting after the day on which the circumstance specified in paragraph 6.2.1 comes into existence, or before the reporting entity commences to provide another designated service to which Part 2 of the AML/CTF Act applies, to the customer;

(2)     the specified action in paragraph 6.3.2 must be taken within 14 days starting after the day on which the suspicious matter reporting obligation arose, or before the reporting entity commences to provide another designated service to which Part 2 of the AML/CTF Act applies, to the customer;

(3)     the specified action in paragraph 6.4.2 must be taken within 14 days starting after the day on which the suspicious matter reporting obligation arose, or before the reporting entity commences to provide another designated service to which Part 2 of the AML/CTF Act applies, to the customer.

Record‑keeping

10.1.8  This Rule is made pursuant to subsections 118(2) and (4) of the AML/CTF Act.  Sections 106 and 107 of the AML/CTF Act do not apply to a designated service of a kind described in:

(1)     items 1, 2, or 6 of table 3 of section 6; or

(2)     item 4 of table 3 of section 6 to the extent that the service is provided by giving the customer only gaming chips or tokens.

Part 10.2            On‑course bookmakers and totalisator agency boards

10.2.1  These Rules at paragraphs 10.2.2 to 10.2.7 apply with respect to designated services provided by a reporting entity that is an on‑course bookmaker or a totalisator agency board.

Customer identification

10.2.2  These Rules at paragraphs 10.2.3 to 10.2.5 are made pursuant to subsection 39(4) of the AML/CTF Act.

10.2.3  Subject to paragraph 10.2.5 of these Rules, the provisions in Division 4 of Part 2 of the AML/CTF Act do not apply in respect of a designated service of a kind described in items 1 or 2 of table 3 of section 6.

10.2.4  Subject to paragraph 10.2.5 of these Rules, the provisions in Division 4 of Part 2 of the AML/CTF Act do not apply in respect of a designated service of a kind described in item 4 of table 3 of section 6 where that service involves an amount less than $10,000.

10.2.5  The exemptions in paragraphs 10.2.3 and 10.2.4 of these Rules do not apply in circumstances where a reporting entity determines in accordance with its enhanced customer due diligence program that it should obtain and verify any KYC information in respect of a customer in accordance with its customer identification program.

Record‑keeping

10.2.6  This Rule is made pursuant to subsections 118(2) and (4) of the AML/CTF Act.  Sections 106 and 107 of the AML/CTF Act do not apply to a designated service of a kind described in items 1, 2, or 6 of table 3 of section 6.   

Verification of identity

10.2.7  The requirements specified in paragraphs 6.2.3, 6.3.2 and 6.4.2 of these Rules are modified as follows in respect of a reporting entity which provides a designated service that is an on‑course bookmaker or a totalisator agency board:

(1)     the specified action in paragraph 6.2.3 must be taken within 14 days starting after the day on which the circumstance specified in paragraph 6.2.1 comes into existence, or before the reporting entity commences to provide another designated service to which Part 2 of the AML/CTF Act applies, to the customer;

(2)     the specified action in paragraph 6.3.2 must be taken within 14 days starting after the day on which the suspicious matter reporting obligation arose, or before the reporting entity commences to provide another designated service to which Part 2 of the AML/CTF Act applies, to the customer;

(3)     the specified action in paragraph 6.4.2 must be taken within 14 days starting after the day on which the suspicious matter reporting obligation arose, or before the reporting entity commences to provide another designated service to which Part 2 of the AML/CTF Act applies, to the customer.

Part 10.3            Gaming machines

10.3.1  These Rules at paragraphs 10.3.2 to 10.3.5 apply with respect to a designated service provided by a reporting entity by way of a gaming machine other than designated services provided at a casino.

Customer identification

10.3.2  The Rules at paragraphs 10.3.3 to 10.3.5 are made pursuant to subsection 39(4) of the AML/CTF Act.

10.3.3  Subject to paragraph 10.3.5 of these Rules, the provisions in Division 4 of Part 2 of the AML/CTF Act do not apply in respect of a designated service of a kind described in items 5 or 6 of table 3 of section 6.

10.3.4  Subject to paragraph 10.3.5 of these Rules, the provisions in Division 4 of Part 2 of the AML/CTF Act do not apply in respect of a designated service of a kind described in items 9 or 10 of table 3 of section 6 where that service involves an amount less than $10,000.

10.3.5  The exemptions in paragraphs 10.3.3 and 10.3.4 do not apply in circumstances where a reporting entity determines in accordance with its enhanced customer due diligence program that it should obtain and verify any KYC information in respect of a customer in accordance with its customer identification program.

Part 10.4            Accounts for online gambling services

Special circumstances that justify carrying out the applicable identification procedure after commencement of the provision of a designated service

10.4.1  Subject to the condition specified in paragraph 10.4.2, online gambling services are specified for the purposes of paragraph 33(a) of the AML/CTF Act.

10.4.2  For the purposes of paragraph 33(b) of the AML/CTF Act, the special circumstances in respect of online gambling services are only available if:

(1)     the customer is required to open an account in order to obtain the service; and

(2)     the reporting entity does not permit the customer to withdraw any funds from the account prior to carrying out the applicable customer identification procedure.

The period ascertained in accordance with subparagraph 34(1)(d)(i) of the AML/CTF Act

10.4.3  This Rule is made pursuant to subparagraph 34(1)(d)(i) of the AML/CTF Act.  In respect of the designated services specified in paragraph 10.4.1 above, the period is 90 days commencing on the day that the reporting entity opens the account in the name of the customer.

CHAPTER 11      

  

11.1     These Rules are made under section 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (the AML/CTF Act) for subsection 47(1) of the AML/CTF Act.  They specify the reporting period and the lodgment period for a compliance report under subsection 47(1) of the AML/CTF Act.

              

11.2     For paragraph 47(1)(a) of the AML/CTF Act, a reporting period is:

 

(1)           the period beginning on 13 December 2006 and ending on 31 December 2007; and

 

(2)           the period beginning on 1 January 2008 and ending on 31 December 2008; and

 

(3)           the period beginning on 1 January 2009 and ending on 31 December 2009.

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.

11.3     For paragraph 47(1)(b) of the AML/CTF Act, the lodgment period for a reporting period is the period of 3 months beginning at the end of the reporting period.

CHAPTER 12     Electronic funds transfer instructions

  

12.1     These Anti‑Money Laundering and Counter‑Terrorism Financing Rules (Rules) are made pursuant to section 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act) for subparagraph 70(a)(i) of that Act.

12.2     For subparagraph 70(a)(i) of the AML/CTF Act, the following kind of transfer instruction is specified:

(1)     a transfer instruction where money is to be paid by use of a credit card.

12.3     Paragraph 12.2 of these Rules does not apply to a transfer instruction involving e‑currency where the transfer instruction falls within paragraph 70(c) of the AML/CTF Act.

Note   reporting entities should note that the activities they carry out in order to comply with these Rules are also subject to the provisions of the Privacy Act 1988, even if the reporting entity is generally exempt from that Act.

CHAPTER 13     Approved third‑party bill payment system

  

13.1     These Anti‑Money Laundering and Counter‑Terrorism Financing Rules (Rules) are made pursuant to section 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act) for the definition of ‘approved third‑party bill payment system’ in section 5 of that Act.

13.2     For the definition of ‘approved third‑party bill payment system’ in section 5 of the AML/CTF Act, the following bill payment systems are prescribed:

(1)     BPAY;

(2)     DEFT; and

(3)     The Australian Payments Clearing Association Limited’s direct entry system.

13.3     In these Rules:

(1)     ‘BPAY’ means a national bill payment service provided by banks, building societies and credit unions registered with the BPAY scheme, that is accessed by a registered business’ customer via the telephone or internet and which enables the registered business to collect payments from their customers electronically.

(2)     ‘DEFT’ means direct electronic funds transfer which is a payment, collection, receipting and reconciliation service that enables the payment of bills by customers registered with the DEFT scheme through the internet, BPAY, Australia Post offices, telephone or mail.

Note   reporting entities should note that the activities they carry out in order to comply with these Rules are also subject to the provisions of the Privacy Act 1988, even if the reporting entity is generally exempt from that Act.

CHAPTER 14     Thresholds for certain designated services

  

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

14.2.    Subject to paragraph 14.5 below, Division 4 of Part 2 of the AML/CTF Act does not apply to a designated service that:

(1)     involves issuing a cheque that an ADI, bank or other institution draws on itself as described in the definition of ‘bill of exchange’ in section 5 of the Act as described in item 17 of table 1 in section 6; and

(2)     meets either of the following requirements:

(a)     the face value of the cheque is less than $5,000 (Australian or the foreign equivalent) and the cheque is drawn from an account held at the issuing:

(i)      ADI; or

(ii)     building society; or

(iii)    bank; or

(iv)    credit union; or

(v)     a representative office of a foreign bank; and

the cheque contains details of a payee; or

(b)     where subparagraph 14.2(2)(a) does not apply:

(i)      the face value of the cheque is less than $1,000(Australian or the foreign equivalent); and

(ii)     the cheque is funded by physical currency. 

14.3.    Subject to paragraph 14.5 below, Division 4 of Part 2 of the AML/CTF Act does not apply to a designated service that:

(1)     involves issuing, cashing or redeeming a traveller’s cheque or traveller’s cheques as described in items 25 or 26 of table 1 in section 6; and

(2)     the total sum of the face value of the traveller’s cheques issued, cashed or redeemed in any one transaction is less than $1,000 (Australian or the foreign equivalent).

14.4.    Subject to paragraph 14.5 below, Division 4 of Part 2 of the AML/CTF Act does not apply to a designated service that:

(1)     is of a kind described in item 50 of table 1 or item 14 of table 3 in section 6; and

(2)     meets either of the following requirements:

(a)     the value of the currency is less than $1,000 (Australian or the foreign equivalent) into or out of an account, and the account provider is:

(i)      an ADI; or

(ii)     a building society; or

(iii)    a bank; or

(iv)    a credit union; or

(v)     a representative office of a foreign bank; or

(b)     where subparagraph 14.4(2)(a) does not apply:

(i)      the value of the currency is less than $1000 (Australian or the foreign equivalent); and

(ii)     the proceeds and/or funding source of the service described in item 50 of table 1 or item 14 of table 3 are in the form of physical currency.

14.5.    The exemptions in paragraphs 14.2 to 14.4 of these Rules do not apply where a reporting entity determines in accordance with its enhanced customer due diligence program that it should obtain and verify any KYC information about a customer in accordance with its customer identification program.

14.6.    In these Rules:

(1)     ‘KYC information’ has the meaning given by Chapter 1 of Anti‑Money Laundering and Counter‑Terrorism Financing Rules Instrument 2007 (No. 1); and

(2)     ‘representative office of a foreign bank’ is an office of the foreign bank in Australia in respect of which the foreign bank has obtained written consent to establish the representative office in Australia under section 67 of the Banking Act 1959 from the Australian Prudential Regulation Authority.

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.

CHAPTER 15        Ongoing customer due diligence

  

(Rules commencing on 12 December 2008)

15.1     These Anti‑Money Laundering and Counter‑Terrorism Financing Rules (Rules) are made under section 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (the AML/CTF Act) for paragraph 36(1)(b) of that Act. The requirements set out in these Rules do not apply in relation to a permanent establishment in a foreign country at or through which a reporting entity provides designated services.

KYC information

15.2     A reporting entity must put in place appropriate risk‑based systems and controls to determine whether any further KYC information should be collected in respect of customers for ongoing customer due diligence purposes.

15.3     A reporting entity must put in place appropriate risk‑based systems and controls to determine whether and in what circumstances KYC information should be updated or verified in respect of its customers for ongoing customer due diligence purposes.

Transaction monitoring program

15.4     A reporting entity must include a transaction monitoring program in Part A of its AML/CTF program.

15.5     The transaction monitoring program must include appropriate risk‑based systems and controls to monitor the transactions of customers.

15.6     The transaction monitoring program must have the purpose of identifying, having regard to ML/TF risk, any transaction that appears to be suspicious within the terms of section 41 of the AML/CTF Act.

15.7     The transaction monitoring program should have regard to complex, unusual large transactions and unusual patterns of transactions, which have no apparent economic or visible lawful purpose.

Enhanced customer due diligence program

15.8     A reporting entity must include an enhanced customer due diligence program in Part A of its AML/CTF program.

15.9     The reporting entity must apply the enhanced customer due diligence program when:

(1)     it determines under its risk‑based systems and controls that the ML/TF risk is high; or

(2)     a suspicion has arisen for the purposes of section 41 of the AML/CTF Act.

15.10   The enhanced customer due diligence program must include appropriate risk‑based systems and controls so that, in cases where enhanced customer due diligence is applied, a reporting entity gives consideration to whether any one or more of the following applies:

(1)     further information ought to be sought from the customer or from third party sources in order to:

(a)     clarify or update the customer’s KYC information;

(b)     obtain any further KYC information;

(c)     clarify the nature of the customer’s ongoing business with the reporting entity;

(d)    consider any suspicion that may have arisen for the purposes of section 41 of the AML/CTF Act;

(2)     more detailed analysis should be undertaken in respect of the customer’s KYC information;

(3)     KYC information ought to be verified or re‑verified in accordance with the customer identification program;

(4)     more detailed analysis and monitoring should be undertaken in respect of the customer’s transactions – both past and future;

(5)     a suspicious matter report ought to be lodged in accordance with section 41 of the AML/CTF Act.

Terms

15.11   In these Rules, the terms ‘AML/CTF program’, ‘KYC information’ and ‘ML/TF risk’ have the same respective meanings as in Chapter 1 in Anti‑Money Laundering and Counter‑Terrorism Financing Rules Instrument 2007 (No. 1).

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.

CHAPTER 16        Reportable details for international funds transfer instructions (items 1 and 2 in section 46)

  

(Rules commencing on 12 December 2008)

16.1     These Anti‑Money Laundering and Counter‑Terrorism Financing Rules (Rules) are made under section 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act) for paragraph 45(3)(b) of that Act.

Instructions transmitted out of Australia

16.2     A report about an international funds transfer instruction (the instruction), within the meaning of item 1 of the table in section 46 of the AML/CTF Act, must contain:

(1)     for an instruction within the meaning of paragraph 70(c) of the AML/CTF Act – the complete payer information under section 71 of the AML/CTF Act;

(2)     for an instruction within the meaning of paragraphs 70(a) or 70(b) of the AML/CTF Act – the tracing information under section 72 of the AML/CTF Act;

(3)     the name or identity of the ordering institution;

(4)     where applicable, the name or identity of any branch or department of the ordering institution which the payer requested to transmit the instruction;

(5)     the name or identity of the institution (the sender) transmitting the instruction to the beneficiary institution, if different from subparagraph 16.2(3);

(6)     where applicable, the name or identity of the sender’s branch or department which transmitted the instruction, if different from subparagraph 16.2(4);

(7)     the date on which the sender transmits, or is to transmit, the instruction to the beneficiary institution;

(8)     the name or identity of the beneficiary institution;

(9)     the name or identity of the branch or department of the beneficiary institution at which the funds will be made available to the payee;

(10)   the name of the payee;

(11)   one or more of the following details:

(a)     the number of any account held by the payee with the beneficiary institution through which the transferred money is to be made available to the payee;

(b)     the payee’s full business or residential address (not being a post box address);

(c)     where applicable, the type and number of identification relating to the payee;

(12)   the following details as appear in the instruction:

(a)     any information or directions provided by the payer to the payee in relation to the instruction;

(b)     the name or identity of any interposed institution in the funds transfer chain;

(c)     the name or identity and account number of any institution through which the beneficiary institution will be reimbursed;

(d)    any information or directions provided by the ordering institution or interposed institution to another institution in the funds transfer chain under subsection 64(2) of the AML/CTF Act;

(e)     any other details relating to the instruction;

(13)   the amount referred to in the instruction;

(14)   the currency of the amount referred to in the instruction; and

(15)   the date on which the transferred money becomes available to the payee.

Instructions transmitted into Australia

16.3     A report about an international funds transfer instruction (the instruction), within the meaning of item 2 of the table in section 46 of the AML/CTF Act, must contain:

(1)     the name of the payer;

(2)     the name or identity of the institution (the sender) transmitting the instruction to the beneficiary institution;

(3)     the following details as appear in the instruction:

(a)     for an instruction within the meaning of paragraph 70(c) of the AML/CTF Act:

(i)      one of the following:

(A)       the payer’s full business or residential address (not being a post box address);

(B)       a unique identification number given to the payer by the Commonwealth or an authority of the Commonwealth (for example, an Australian Business Number or an Australian Company Number);

(C)       a unique identification number given to the payer by the government of a foreign country;

(D)       the identification number given to the payer by the ordering institution;

(E)       if the payer is an individual—the payer’s date of birth, the country of the payer’s birth and the town, city or locality of the payer’s birth;

(ii)     if the money is, or is to be, transferred from a single account held by the payer with the ordering institution in Australia—the account number for the account;

(iii)    if subparagraph 16.3(3)(a)(ii) does not apply—either:

(A)       a unique reference number for the transfer instruction; or

(B)       if the money is, or is to be, transferred from a single account held by the payer with the ordering institution—the account number for the account;

(b)     for an instruction within the meaning of paragraph 70(a) or 70(b) of the AML/CTF Act – the tracing information under section 72 of the AML/CTF Act;

(c)     the name or identity of the ordering institution, if different from subparagraph 16.3(2);

(d)    where applicable, the name or identity of any branch or department of the ordering institution which the payer requested to transmit the instruction, if different from subparagraph 16.3(3)(e);

(e)     where applicable, the name or identity of the sender’s branch or department which transmitted the instruction;

(f)     the identification code assigned to the instruction by the sender;

(g)     the name or identity of the beneficiary institution;

(h)     the name or identity of any branch or department of the beneficiary institution at which the funds will be made available to the payee;

(i)      the date on which the beneficiary institution received the instruction;

(j)      the name of the payee;

(k)     the payee’s full business or residential address (not being a post box address);

(l)      the number of any account held by the payee with the beneficiary institution through which the transferred money is to be made available to the payee;

(m)    the name or identity of any interposed institution in the funds transfer chain;

(n)     the name or identity and account number of any institution through which the beneficiary institution will be reimbursed;

(o)     any information or directions provided by the payer to the payee in relation to the instruction;

(p)     any information or directions provided by the ordering institution or interposed institution to another institution in the funds transfer chain under subsection 64(2) of the AML/CTF Act;

(q)     any other details relating to the instruction;

(4)     the amount referred to in the instruction;

(5)     the currency of the amount referred to in the instruction; and

(6)     the date on which the transferred money becomes available to the payee.

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.

CHAPTER 17        Reportable details for international funds transfer instructions under a designated remittance arrangement (items 3 and 4 in section 46)

  

(Rules commencing on 12 December 2008)

17.1     These Anti‑Money Laundering and Counter‑Terrorism Financing Rules (Rules) are made under section 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act) for paragraph 45(3)(b) of that Act.

Instructions transmitted out of Australia

17.2     A report about an international funds transfer instruction (the instruction), within the meaning of item 3 of the table in section 46 of the AML/CTF Act, must contain:

(1)     if the transferor entity is an individual:

(a)     the transferor entity’s full name;

(b)     any other name used by the transferor entity, if known;

(c)     the transferor entity’s date of birth;

(d)    the transferor entity’s full residential address (not being a post box address);

(e)     the transferor entity’s postal address, if different from subparagraph 17.2(1)(d), if known;

(f)     the transferor entity’s telephone number, if known;

(g)     the transferor entity’s email address, if known;

(h)     the transferor entity’s occupation, business or principal activity and ABN, if known;

(i)      a description of the reliable and independent documentation and/or electronic data source(s) relied upon to verify the identity of the transferor entity, if applicable;

(j)      the identification number assigned to the transferor entity, if applicable;

(2)     if the transferor entity is a non‑individual:

(a)     the name of the transferor entity and any business name under which the transferor entity is operating;

(b)     a description of the legal form of the transferor entity and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company);

(c)     the business or principal activity of the transferor entity, if known;

(d)    the full address (not being a post box address) of the transferor entity at which the entity carries on business, or its principal place of business;

(e)     the transferor entity’s postal address, if different from subparagraph 17.2(2)(d), if known;

(f)     where the transferor entity has an ACN or ARBN – that number;

(g)     where the transferor entity has an ABN – that number;

(h)     the transferor entity’s telephone number, if known;

(i)      the transferor entity’s email address, if known;

(j)      a description of the reliable and independent documentation and/or electronic data source(s) relied upon to verify the identity of the transferor entity, if applicable;

(k)     the identification number assigned to the transferor entity, if applicable;

(3)     the name and address (not being a post box address) of a person that accepts money or property from the transferor entity, which is, or is to be, transferred under a designated remittance arrangement;

(4)     the date on which the person accepts the money or property from the transferor entity;

(5)     the name, identifier (if applicable) and address (not being a post box address) of the person at which it accepts the instruction from the transferor entity, if different from subparagraph 17.2(3);

(5A)  the number of the transferor entity’s account held with the person which accepts the instruction from the transferor entity, if applicable;

(6)     where a person (other than the person referred to in subparagraph 17.2(3)) transmits the instruction for the transfer of money or property under the designated remittance arrangement (transmitter):

(a)     if the transmitter is an individual:

(i)         the transmitter’s full name;

(ii)        any other name used by the transmitter, if known;

(iii)       the transmitter’s date of birth, if known;

(iv)       the transmitter’s address (not being a post box address);

(v)        the transmitter’s postal address, if different from subparagraph 17.2(6)(a)(iv), if known;

(vi)       the transmitter’s telephone number, if known;

(vii)      the transmitter’s email address, if known;

(viii)     the transmitter’s occupation, business or principal activity, if known;

(b)     if the transmitter is a non‑individual:

(i)         the name of the transmitter and any business name under which the transmitter is operating;

(ii)        a description of the legal form of the transmitter and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company);

(iii)       the business or principal activity of the transmitter, if known;

(iv)       the address (not being a post box address) of the transmitter at which the transmitter carries on business, or its principal place of business;

(v)        the transmitter’s postal address, if different from subparagraph 17.2(6)(b)(iv), if known;

(vi)       where the transmitter has an ACN or ARBN – that number;

(vii)      where the transmitter has an ABN – that number;

(viii)     the transmitter’s telephone number, if known;

(ix)       the transmitter’s email address, if known;

(6A)  the name and address of the person in the foreign country to which the transmitter sent the instruction for the transfer of money or property;

(7)     the name, identifier (if applicable) and address of a person (disbursing entity) at which the money or property is, or is to be, made available to the ultimate transferee entity;

(8)     the date on which the money or property becomes accessible for the disbursing entity to make available to the ultimate transferee entity, if known;

(9)     if the ultimate transferee entity is an individual, the ultimate transferee entity’s:

(a)     full name;

(b)     date of birth, if known;

(c)     address (not being a post box address);

(d)    postal address, if different from subparagraph 17.2(9)(c), if known;

(e)     telephone number, if known;

(f)     email address, if known;

(10)   if the ultimate transferee entity is a non‑individual:

(a)     the name of the ultimate transferee entity and any business name under which the ultimate transferee entity is operating;

(b)     a description of the legal form of the ultimate transferee entity and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company);

(c)     the business or principal activity of the ultimate transferee entity, if known;

(d)    the address (not being a post box address) of the ultimate transferee entity at which it carries on business, or its principal place of business;

(e)     the ultimate transferee entity’s postal address if different from subparagraph 17.2(10)(d), if known;

(f)     the ultimate transferee entity’s telephone number, if known;

(g)     the ultimate transferee entity’s email address, if known;

(11)   if money is to be transferred:

(a)     the amount referred to in the instruction;

(b)     the currency of the amount referred to in the instruction;

(12)   if property is to be transferred (transferred property):

(a)     a description of the transferred property referred to in the instruction;

(b)     the value of the transferred property referred to in the instruction;

(c)     the currency used to value the transferred property referred to in the instruction;

(12A)  if money is to be made available to the ultimate transferee entity by a person in a foreign country depositing or arranging for the money to be deposited into an account held by the ultimate transferee entity with that person, whether or not held jointly with any other person or persons:

(a)     the account number of that account, if applicable;

(b)     the name in which the account is held, if applicable; and

(c)     the name and location of the institution at which the account is held;

(12B)  any reference number allocated by the reporting entity to the instruction;

(13)   any information given in the instruction about the reason for transferring the money or property.

Instructions transmitted into Australia

17.3     A report about an international funds transfer instruction (the instruction), within the meaning of item 4 in the table in section 46 of the AML/CTF Act, must contain:

(1)     if the transferor entity is an individual:

(a)     the transferor entity’s name;

(b)     any other name used by the transferor entity, if known;

(c)     the transferor entity’s date of birth, if known;

(d)    the transferor entity’s address (not being a post box address);

(e)     the transferor entity’s postal address, if different from subparagraph 17.3(1)(d), if known;

(f)     the transferor entity’s telephone number, if known;

(g)     the transferor entity’s email address, if known;

(h)     the transferor entity’s occupation, business or principal activity, if known;

(2)     if the transferor entity is a non‑individual:

(a)     the name of the transferor entity and any business name under which the transferor entity is operating;

(b)     a description of the legal form of the transferor entity and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company);

(c)     the business or principal activity of the transferor entity, if known;

(d)    the address (not being a post box address) of the transferor entity at which it carries on business, or its principal place of business;

(e)     the transferor entity’s postal address, if different from subparagraph 17.3(2)(d), if known;

(f)     the transferor entity’s telephone number, if known;

(g)     the transferor entity’s email address, if known;

(3)     for a person in a foreign country who accepts the instruction from the transferor entity for the transfer of money or property (foreign entity):

(a)     if the foreign entity is an individual:

(i)         the foreign entity’s full name;

(ii)        any other name used by the foreign entity, if known;

(iii)       the foreign entity’s date of birth, if known;

(iv)       the foreign entity’s address (not being a post box address);

(v)        the foreign entity’s postal address, if different from subparagraph 17.3(3)(a)(iv), if known;

(vi)       the foreign entity’s telephone number, if known;

(vii)      the foreign entity’s email address, if known;

(viii)     the foreign entity’s occupation, business or principal activity, if known;

(b)     if the foreign entity is a non‑individual:

(i)         the name of the foreign entity and any business name under which the foreign entity is operating;

(ii)        a description of the legal form of the foreign entity and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company);

(iii)       the business or principal activity of the foreign entity, if known;

(iv)       the address (not being a post box address) of the foreign entity at which it carries on business, or its principal place of business;

(v)        the foreign entity’s postal address, if different from subparagraph 17.3(3)(b)(iv), if known;

(vi)       the foreign entity’s telephone number, if known;

(vii)      the foreign entity’s email address, if known;

(4)     the date on which the foreign entity accepts the money or property from the transferor entity;

(5)     the name, identifier (if applicable) and address (not being a post box address) of the foreign entity at which it accepts the instruction from the transferor entity, if applicable and known;

(5A)    the number of the transferor entity’s account held with the foreign entity which accepts the instruction from the transferor entity, if applicable;

(6)     where a person (other than the foreign entity) transmits the instruction for the transfer of money or property under the designated remittance arrangement (transmitter):

(a)     if the transmitter is an individual:

(i)         the transmitter’s full name, if known;

(ii)        any other name used by the transmitter, if known;

(iii)       the transmitter’s date of birth, if known;

(iv)       the transmitter’s address (not being a post box address), if known;

(v)        the transmitter’s postal address, if different from subparagraph 17.3(6)(a)(iv), if known;

(vi)       the transmitter’s telephone number, if known;

(vii)      the transmitter’s email address, if known;

(viii)     the transmitter’s occupation, business or principal activity, if known;

(b)     if the transmitter is a non‑individual:

(i)         the name of the transmitter and any business name under which the transmitter is operating, if known;

(ii)        a description of the legal form of the transmitter and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company);

(iii)       the business or principal activity of the transmitter, if known;

(iv)       the address (not being a post box address) of the transmitter at which it carries on business, or its principal place of business, if known;

(v)        the transmitter’s postal address, if different from subparagraph 17.3(6)(b)(iv), if known;

(vi)       the transmitter’s telephone number, if known;

(vii)      the transmitter’s email address, if known;

(6A)  the name and address of the entity in Australia to which the instruction for the transfer of money or property was sent by the transmitter;

(7)     the date on which the reporting entity makes or will make the money or property available to the ultimate transferee entity;

(8)     the name and full address (not being a post box address) of the reporting entity that makes or will make the money or property available to the ultimate transferee entity in Australia;

(9)     the name, identifier (if applicable) and address (not being a post box address) of the reporting entity, if different from subparagraph 17.3(8), at which the money or property was made or is to be made available to the ultimate transferee entity in Australia;

(10)   if the ultimate transferee entity is an individual, the ultimate transferee entity’s:

(a)     full name;

(b)     date of birth, if known;

(c)     full residential address (not being a post box address), if known;

(d)    postal address, if different from subparagraph 17.3(10)(c), if known;

(e)     telephone number, if known;

(f)     email address, if known;

(g)     occupation, business or principal activity and ABN, if known;

(11)   if the ultimate transferee entity is a non‑individual:

(a)     the name of the ultimate transferee entity and any business name under which the ultimate transferee entity is operating;

(b)     a description of the legal form of the ultimate transferee entity and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company);

(c)     the business or principal activity of the ultimate transferee entity, if known;

(d)    the full address (not being a post box address) of the ultimate transferee entity at which it carries on business, or its principal place of business, if known;

(e)     the ultimate transferee entity’s postal address, if different from subparagraph 17.3(11)(d), if known;

(f)     where the ultimate transferee entity has an ACN or ARBN – that number;

(g)     where the ultimate transferee entity has an ABN – that number;

(h)     the ultimate transferee entity’s telephone number, if known;

(i)      the ultimate transferee entity’s email address, if known;

(12)   if money is to be transferred:

(a)     the amount referred to in the instruction;

(b)     the currency of the amount referred to in the instruction;

(13)   if property is to be transferred (transferred property):

(a)     a description of the transferred property referred to in the instruction;

(b)     the value of the transferred property referred to in the instruction;

(c)     the currency used to value the transferred property referred to in the instruction;

(13A)  if money is to be made available to the ultimate transferee entity by a person in Australia depositing or arranging for the money to be deposited into an account held by the ultimate transferee entity with that person, whether or not held jointly with any other person or persons:

(a)     the account number of that account, if applicable;

(b)     the name in which the account is held, if applicable; and

(c)     the name and location of the institution at which the account is held;

(13B)  any reference number allocated by the reporting entity to the instruction;

(14)   any information given in the instruction about the reason for transferring the money or property.

17.4     A report under subsection 45(2) of the AML/CTF Act must contain the following details about the person completing the report:

(1)     Full name;

(2)     Job title or position;

(3)     Telephone number; and

(4)     Email address.

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.

CHAPTER 18     Reportable details for suspicious matters

  

(Rules commencing on 12 December 2008)

18.1     These Anti‑Money Laundering and Counter‑Terrorism Financing Rules (Rules) are made under section 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act) for paragraph 41(3)(b) of that Act.

18.2     A suspicious matter report must contain the following information:

(1)     a statement of whether the person (first person) is a customer of the reporting entity;

(2)     a statement of whether the first person has requested the reporting entity to provide a designated service to the first person and that service is of a kind ordinarily provided by the reporting entity;

(3)     a statement of whether the first person enquired of the reporting entity whether it would be willing or prepared to provide the designated service to the first person and that service is of a kind ordinarily provided by the reporting entity;

(4)     a statement of whether the reporting entity has commenced to provide or proposes to provide the designated service to the first person;

(5)     a description of any conditions in paragraphs 41(1)(d) to (j) of the AML/CTF Act that relate to the provision or prospective provision of the designated service by the reporting entity (suspicious matter);

(6)     a description of any designated service to which the suspicious matter relates;

(7)     a description of the reasonable grounds for suspicion relating to the suspicious matter;

Individual

(8)     if the first person is an individual:

(a)     the full name of the first person, if known;

(b)     the telephone number of the first person, if known;

(c)     the full address of the first person (not being a post box address), if known;

(d)    the postal address of the first person, if different from subparagraph 18.2(8)(c), if known;

(e)     the date of birth of the first person, if known;

(f)     the country of citizenship of the first person, if known;

(g)     the occupation, business or principal activity and ABN of the first person, if known;

(h)     any other name used by the first person, if known;

(i)      the email address of the first person, if known;

(j)      a description of the reliable and independent documentation and/or electronic data source(s) relied upon to verify the identity of the first person, if applicable;

Individual – where identity cannot be established

(9)     if the first person is an individual whose identity cannot be established; for example, where the provision or prospective provision of the designated service to which the suspicious matter relates occurred in a face‑to‑face circumstance:

(a)     a description of the first person;

(b)     a statement of whether any relevant documentation exists including a video or photograph, if known and held by the reporting entity;

(c)     a description of any such relevant documentation relating to the first person, if known;

(d)    the address of the first person (not being a post box address), if known;

(e)     the email address of the first person, if known;

Non‑individual

(10)   if the first person is not an individual:

(a)     the name of the first person and any business name under which the first person is operating, if known;

(b)     a description of the legal form of the first person and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company);

(c)     the business or principal activity of the first person, if known;

(d)    the full address of the first person (not being a post box address), at which the person carries on business, or principal place of business, if known;

(e)     the postal address of the first person, if different from subparagraph 18.2(10)(d), if known;

(f)     the telephone number of the first person, if known;

(g)     where the first person has an ACN or ARBN – that number, if known;

(h)     where the first person has an ABN – that number, if known;

(i)      a description of any documentation relating to the first person to which the suspicious matter relates, if known;

(j)      the name(s) of the beneficial owner(s) of the first person, if known;

(k)     the name(s) of the office holder(s) of the first person, if known;

(l)      the country at which the first person was incorporated, formed or registered, if known;

(m)    the email address of the first person, if known;

(n)     a description of the reliable and independent documentation and/or electronic data source(s) relied upon to verify the identity of the first person, if applicable;

Agent

(11)   a statement of whether a person dealing with the reporting entity in relation to the provision or proposed provision of the designated service to which a suspicious matter relates, is an agent of the first person (agent);

(12)   Where subparagraph 18.2(11) applies:

(a)     a statement of whether the agent is a customer of the reporting entity;

(b)     a description of the relationship between the agent and the first person, if known;

(c)     a description of any evidence of the first person’s authorisation of the agent, if known;

Agent – individual

(13)   If the agent is an individual:

(a)     the full name of the agent, if known;

(b)     the date of birth of the agent, if known;

(c)     the full address of the agent (not being a post box address), if known;

(d)    the postal address of the agent, if different from subparagraph 18.2(13)(c), if known;

(e)     the telephone number of the agent, if known;

(f)     the email address of the agent, if known;

(g)     the country of citizenship of the agent, if known;

(h)     the occupation, business or principal activity and ABN of the agent, if known;

(i)      any other name(s) used by the agent, if known;

(j)      a description of any reliable and independent documentation and/or electronic data source(s) relied upon to verify the identity of the agent, if applicable;

Agent – where identity cannot be established – individual

(14)   if the agent’s identity cannot be established; for example, where the provision or prospective provision of the designated service to which the suspicious matter relates occurred in a face‑to‑face circumstance:

(a)     a description of the agent, if applicable;

(b)     a statement of whether any relevant documentation exists including a video or photograph, if known and held by the reporting entity;

(c)     a description of any such relevant documentation relating to the agent, if known;

(d)    the address of the agent (not being a post box address), if known;

(e)     the email address of the agent, if known;

Agent – non‑individual

(15)   if the agent is not an individual:

(a)     the name of the agent and any business name(s) under which the agent is operating, if applicable;

(b)     a description of the legal form of the agent and any business structure it is a part of, for the purposes of its main business activities, if known (for example, partnership, trust or company);

(c)     the business or principal activity of the agent, if applicable;

(d)    the full address of the agent (not being a post box address), at which the person carries on business, or principal place of business, if known;

(e)     the postal address of the agent, if different from subparagraph 18.2(15)(d), if known;

(f)     where the agent has an ACN or ARBN – that number, if known;

(g)     where the agent has an ABN – that number, if known;

(h)     a description of any documentation relating to the agent to which the suspicious matter relates, if known;

(i)      the telephone number of the agent, if known;

(j)      the email address of the agent, if known;

(k)     the country in which the agent was incorporated, formed or registered, if known;

(l)      the name(s) of beneficial owner(s) of the agent, if known;

(m)    the name(s) of office holder(s) of the agent, if known;

(n)     a description of any reliable and independent documentation and/or electronic data source(s) relied upon to verify the identity of the agent, if applicable;

Other relevant information

(16)   the date(s) on which any of the following occurs in respect of the designated service to which the suspicious matter relates:

(a)     the reporting entity commences to provide or proposes to provide the designated service to the first person; or

(b)     the first person requests the reporting entity to provide the designated service, of a kind ordinarily provided by the reporting entity, to the first person; or

(c)     the first person enquires of the reporting entity whether it would be willing or prepared to provide the designated service, of a kind ordinarily provided by the reporting entity, to the first person; or

(d)    the agent deals with the reporting entity in relation to the provision or prospective provision of the designated service;

(17)   the reporting entity’s identifier number (where applicable) or reference number relating to the provision or prospective provision of the designated service to which the suspicious matter relates;

(18)   where an account provided by a reporting entity or another person relates to the designated service to which the suspicious matter relates:

(a)     the name appearing on the account;

(b)     the name of the provider of the account, if known;

(c)     a description of the account, if known;

(d)    the account number, if known;

(e)     the name(s) of signatory(ies) to the account, if known;

(f)     the BSB number of the account, if applicable and known;

(g)     the date on which the account was opened, if known;

(h)     a description of any documentation relating to the account, if known;

(i)      the balance(s) of the account on the date(s) to which a suspicious matter relates, if known;

(19)   the total amount related to the designated service to which the suspicious matter relates, in Australian dollars and/or foreign currency;

(20)   where the total amount consists of components, for such of the components which relate to the grounds for the suspicion, if applicable and known:

(a)     a description of each of the components;

(b)     the amount of each of the components in Australian dollars;

(c)     the type of foreign currency and amount of the foreign currency, where applicable, in relation to each of the components;

(d)    the name of the drawer or issuer of each of the components, if applicable;

(e)     the name and branch of the institution or foreign financial institution at which each of the components is, or was, drawn or issued, if applicable;

(f)     the country in which the branch referred to in subparagraph 18.2(20)(e) is located;

(g)     the name of the payee of each of the components, where applicable;

(h)     if the payee of each of the components is not the beneficiary, the full name of the beneficiary, if known;

(i)      the date on which each of the components occurs;

(21)   if applicable, where money or property is transferred or is to be transferred under the provision or prospective provision of the designated service to which the suspicious matter relates:

(a)     the full name of the sender;

(b)     the full address of the sender (not being a post box address);

(c)     the postal address of the sender, if different from subparagraph 18.2(21)(b), if known;

(d)    the telephone number of the sender, if known;

(e)     the email address of the sender, if known;

(f)     a statement of whether the money was transferred or is to be transferred;

(g)     a statement of whether the property was transferred or is to be transferred;

(h)     a description of the property which is or is to be transferred;

(i)      the account number of the sender from which money or property is transferred or is to be transferred, or where an account does not exist, a unique reference number relating to the transfer of money or property;

(j)      the name of the institution or entity that issued the account referred to in subparagraph 18.2(21)(i);

(k)     the full name of any payee, if known;

(l)      if the payee is not the beneficiary, the full name of the beneficiary, if known;

(m)    the full address of the payee and/or beneficiary (not being a post box address), if known;

(n)     the postal address of the payee and/or beneficiary, if different from subparagraph 18.2(21)(m), if known;

(o)     the account number of the beneficiary and/or payee;

(p)     the name of the institution or entity that issued the account referred to in subparagraph 18.2(21)(o);

(q)     the country in which the institution or entity referred to in subparagraph 18.2(21)(p) is located;

(r)     the date on which the money or property is transferred or is to be transferred;

(22)   if another institution, entity or intermediary was involved in the reporting entity’s provision or prospective provision of the designated service to which the suspicious matter relates:

(a)     the full name of the other institution, entity or intermediary;

(b)     the branch name or country of the other institution, entity or intermediary;

(c)     the country of the branch of the other institution, entity or intermediary, if the country is not Australia;

(23)   the name of the reporting entity;

(24)   the full address and branch of the reporting entity (not being a post box address), at which any of the following applies:

(a)     the reporting entity commences to provide or proposes to provide the designated service (to which the suspicious matter relates) to the first person; or

(b)     the first person requests the reporting entity to provide the designated service (to which the suspicious matter relates), of a kind ordinarily provided by the reporting entity, to the first person; or

(c)     the first person enquires of the reporting entity whether it would be willing or prepared to provide the designated service (to which the suspicious matter relates), of a kind ordinarily provided by the reporting entity, to the first person; or

(d)    the agent deals with the reporting entity in relation to the provision or the prospective provision of the designated service (to which the suspicious matter relates);

(27)   if a suspicious matter has been reported or is to be reported to an Australian government body that has responsibility for law enforcement referred to in paragraph 123(9)(b) of the AML/CTF Act:

(a)     a description of the Australian government body;

(b)     the address of the Australian government body;

(c)     a description of the information which was provided to the Australian government body;

(d)    the date on which the suspicious matter is to be, or was, reported;

(28)   where a suspicious matter reporting obligation has previously arisen for the reporting entity in relation to the first person and was previously reported to AUSTRAC under section 41 of the AML/CTF Act:

(a)     the date on which the suspicious matter was reported, if known;

(b)     any identifier number or reference number given by the reporting entity to the previous report, if known.

18.3     A report under subsection 41(2) of the AML/CTF Act must contain the following details about the person completing the report:

(1)     Full name;

(2)     Job title or position;

(3)     Telephone number; and

(4)     Email address.

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.

CHAPTER 19     Reportable details for threshold transactions

  

19.1     This Chapter commences on 12 December 2008.

19.2     These Rules are made under section 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act) for paragraph 43(3)(b) of that Act.

19.3     A report under subsection 43(2) of the AML/CTF Act must contain the following details about a threshold transaction:

(1)     if the customer of the designated service is an individual, the customer’s:

(a)     full name and any other name used by the customer, if known;

(aa)   any business name(s) under which the customer operates, if known;

(b)     date of birth;

(c)     full address (not being a post box address);

(ca)   the postal address of the customer if different from that in 19.3(1)(c), if known;

(d)    telephone number, if known;

(e)     the ABN of the customer, if known;

(2)     if the customer of the designated service is not an individual:

(a)     the name of the customer and any business name(s) under which the customer operates;

(b)     a description of the legal form of the customer and any business structure it is a part of, for the purposes of its main business activities, if known (for example: partnership, trust or company);

(c)     the full address of the customer’s principal place of business (not being a post box address) if applicable;

(d)    the postal address of the customer if different from that in 19.3(2)(c), if known;

(e)     the ACN, ARBN and/or ABN of the customer, if known;

(f)     the customer’s telephone number, if known;

(3)     the occupation, business or principal activity of the customer or the relevant industry or occupation code(s) that applies to the customer’s business or occupation, if known, such as (without limitation):

(a)     the Australian Bureau of Statistics in the Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006 (as amended from time to time); or

(b)     the relevant industry code that applies to the customer’s business as published by the Australian Bureau of Statistics in the Australian Standard Classification of Occupations (ASCO) (as amended from time to time);

(4)     the date of the threshold transaction;

(5)     a description of the designated service provided or commenced to be provided by the reporting entity to the customer which involves the threshold transaction;

(6)     where applicable, the total of each of the following amounts, and the sum of these amounts, provided to or received from the customer relating to the threshold transaction:

(a)     money, including the total of each component thereof, and the type and total of each currency where a component is physical currency;

(b)     international funds transfers;

(c)     cheques;

(d)    bank cheques;

(e)     bank drafts;

(f)     traveller’s cheques;

(g)     money or postal orders;

(h)     hire purchase or finance lease payments;

(i)      negotiable debt instruments;

(j)      benefit payments or payouts;

(k)     contributions or premiums;

(l)      derivatives or futures;

(m)    securities;

(n)     bullion;

(o)     stored value cards (including whether the card was issued or topped up);

(p)     gambling chips or tokens;

(q)     electronic gaming machine payouts;

(r)     winning tickets from wagering;

(s)     buying into a game (for a gambling service);

(t)     placing a bet; and

(u)     any other value;

(7)     all of the following details, as applicable to the threshold transaction:

(a)     where the threshold transaction involves physical currency:

(i)         the total amount in Australian dollars;

(ii)        if the amount involves foreign currency, a description and amount of the currency;

(iii)       the name(s) of the recipient(s);

(iv)       the full address(es) of the recipient(s) (not being a post box address) if known;

(v)        the date(s) of birth of the recipient(s), if known;

(vi)       a description of the purpose of the transfer(s);

(vii)      if the purpose of the transfer(s) is to:

(a)        enable a cheque to be provided to the customer using all or part of the physical currency transferred by the customer; or

(b)        enable the customer to receive physical currency in exchange for all or part of a cheque produced by the customer to the reporting entity;

the following details:

(c)        the name of the drawer;

(d)       the name of the drawee; and

(e)      the amount of the cheque;

(b)     where the threshold transaction involves e‑currency:

(i)         the total amount in Australian dollars;

(ii)        if the amount is denominated in foreign currency, a description and amount of the currency;

(iii)       a description of the e‑currency including details of the backing asset or thing, if known;

(iv)       the name(s) of the recipient(s);

(v)        the full address(es) of the recipient(s) (not being a post box address), if known;

(vi)       the date(s) of birth of the recipient(s), if known;

(vii)      a description of the purpose of the transfer(s);

(viii)     if the purpose of the transfer(s) is to:

(a)        enable a cheque to be provided to the customer using all or part of the e-currency transferred by the customer; or

(b)        enable the customer to receive e-currency in exchange for all or part of a cheque produced by the customer to the reporting entity;

the following details:

(c)      the name of the drawer;

(d)     the name of the drawee; and

(e)      the amount of the cheque;

(c)     where the threshold transaction is of a kind specified in the regulations involving money:

(i)         the total amount in Australian dollars;

(ii)        if the amount involves foreign currency, a description and amount of the currency;

(iii)       a description of the type of specified transaction;

(iv)       the name(s) of the recipient(s);

(v)        the full address(es) of the recipient(s) (not being a post box address), if known;

(vi)       the date(s) of birth of the recipient(s), if known;

(vii)      a description of the purpose of the transfer(s);

(viii)     if the purpose of the transfer(s) is to:

(a)        enable a cheque to be provided to the customer using all or part of the money transferred by the customer; or

(b)        enable the customer to receive money in exchange for all or part of a cheque produced by the customer to the reporting entity;

the following details:

(c)        the name of the drawer;

(d)       the name of the drawee; and

(e)        the amount of the cheque;

(d)    where the threshold transaction is of a kind specified in the regulations involving the transfer of property:

(i)         a description of the type of specified transaction;

(ii)        the value of the transferred property in Australian dollars;

(iii)       if value of the transferred property involves foreign currency, a description and amount of the currency;

(iv)       the name(s) of the recipient(s);

(v)        the full address(es) of the recipient(s) (not being a post box address), if known;

(vi)       the date(s) of birth of the recipient(s), if known;

(vii)      a description of the purpose of the transfer(s);

(viii)     if the purpose of the transfer(s) is to:

(a)        enable a cheque to be provided to the customer using all or part of the property transferred by the customer; or

(b)        enable the customer to receive property in exchange for all or part of a cheque produced by the customer to the reporting entity;

the following details:

(c)        the name of the drawer;

(d)       the name of the drawee; and

(e)        the amount of the cheque;

(8)     a description of any account opened by the reporting entity that involves the threshold transaction including the account’s identifying number;

(9)     the name and, if applicable, identifying number of the reporting entity;

(10)   the name and, if applicable, identifying number of the reporting entity at which the threshold transaction was conducted;

(11)   the address of the reporting entity at which the threshold transaction was conducted;

(12)   any identifying or transaction number assigned to the threshold transaction;

(13)   a description of the reliable and independent documentation and/or electronic data source(s) relied upon to verify the identity of the customer, if applicable.

19.4     A report under subsection 43(2) of the AML/CTF Act must contain the following details about the person completing the report:

(1)     Full name;

(2)     Job title or position;

(3)     Telephone number; and

(4)     Email address.

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.

CHAPTER 20     Record‑keeping obligations under section 114

  

20.1     These Anti‑Money Laundering and Counter‑Terrorism Financing Rules (Rules) are made under section 229 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act) for the purposes of subsection 247(4) of that Act.

20.2     Pursuant to subsection 247(4) of the AML/CTF Act, subsections 114(2), 114(3) and 114(5) of that Act do not apply to a designated service which is, or is to be, provided in circumstances described in paragraphs 114(1)(a), 114(1)(b) and 114(1)(c), if the second reporting entity has:

(1)     access to records of identification procedures made by the first reporting entity in accordance with subsection 112(2), under an agreement in place for the management of identification records; and

(2)     determined that it is appropriate for it to rely upon the applicable customer identification procedure carried out by the first reporting entity having regard to the ML/TF risk faced by the second reporting entity relevant to the provision of the designated service to the customer.

20.3     In this Chapter:

(1)     ‘first reporting entity’ means the reporting entity referred to in paragraph 114(1)(a) of the AML/CTF Act; and

(2)     ‘second reporting entity’ means the reporting entity referred to in paragraph 114(1)(b) of the AML/CTF Act.

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.

CHAPTER 21     Issuing or selling a security or derivative

  

Anti-Money Laundering and Counter-Terrorism Financing Rules for issuing or selling a security or derivative

21.1     These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for paragraph (d) of item 35 of table 1 in subsection 6(2) and subsection 247(3) of that Act.

21.2     For paragraph (d) of item 35 of table 1 in subsection 6(2) of the AML/CTF Act, the condition applies that the service is not a disposal of a security or derivative through an agent who is doing so in the course of carrying on a business of disposing of securities or derivatives in the capacity of agent, within the terms of item 33 of table 1 in subsection 6(2) of that Act.

21.3.    For subsection 247(3) of the AML/CTF Act, the following designated services provided in any of the following circumstances are specified:

(1)     a person issuing or selling a security or derivative to another person (transaction) under item 35 of table 1 in subsection 6(2) of the AML/CTF Act and the transaction occurs on a prescribed financial market; or

(2)     an issue of an interest in a managed investment scheme (including an option to acquire an interest in a managed investment scheme) where the managed investment scheme is quoted on a prescribed financial market, in the following circumstances:

(a)     the issue is in accordance with relevant requirements in the Corporations Act 2001 pursuant to a dividend or distribution plan (also known as a distribution reinvestment plan); and

(b)     the interest is to be quoted on a prescribed financial market; or

(3)     an issue of an interest in a managed investment scheme (including an option to acquire an interest in a managed investment scheme) where the managed investment scheme is quoted or to be quoted on a prescribed financial market, in the following circumstances:

(a)     the issue is in accordance with relevant requirements in the Corporations Act 2001 pursuant to fundraising (including an initial public offering and a rights issue); and

(b)     the interest is to be quoted on a prescribed financial market.

21.4     In this Chapter:

(1)     ‘dividend or distribution plan’ has the meaning given by Chapter 19 of the ASX Listing Rules issued, as in force on 22 April 2008, by ASX Limited trading as the Australian Securities Exchange;

(2)     ‘initial public offering’ in the context of an interest in a managed investment scheme is an offering of that interest by a reporting entity, for the first time, to an applicant who subscribes for that interest, before the interest is quoted on a prescribed financial market;

(3)     ‘prescribed financial market’ has the meaning given by section 9 of the Corporations Act 2001;

(4)     rights issue’ has the meaning given by section 9A of the Corporations Act 2001.

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.

CHAPTER 22     Exemption of certain types of transactions relating to the over-the-counter derivatives market

  

22.1     These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 247(3) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

22.2     Subject to paragraph 22.3, the AML/CTF Act does not apply to a designated service that:

(1)     is of a kind described in item 35 of table 1 in section 6 of the AML/CTF Act; and

(2)     relates to the over-the-counter derivatives market in Australia relating to the wholesale price of electricity, gas, or renewable energy certificates.

22.3     The exemption in paragraph 22.2 only applies if:

(1)     the person who provides the designated service:

(a)     is registered as, or is taken to be, a Market Participant under the National Electricity Rules; or

(b)     is registered as a Market Participant under the Wholesale Electricity Market Rules; and

(c)     one of the following applies:

(i)      the person holds an AFS licence that authorises that person to provide the designated service; or

(ii)     the person acts through an agent that holds an AFS licence which authorises that agent to provide the designated service on behalf of the person, or is appointed as an authorised representative under section 916A of the Corporations Act 2001 to provide the designated service on behalf of the person; or

(iii)    the person is, by regulation made under section 134 of the Electricity Industry Act 2004 (WA), exempt from the requirement to hold an AFS licence which authorises that person to provide the designated service; and

(2)        the person who is the customer of the designated service:

(1)        is registered as, or is taken to be, a Market Participant under the National Electricity Rules; or

(2)        is registered as a Market Participant under the Wholesale Electricity Market Rules; or

(3)        is acting on behalf of a person so registered.

22.4     Subject to paragraph 22.5, the AML/CTF Act does not apply to a designated service that:

(1)        is of a kind described in item 33 of table 1 in section 6 of the AML/CTF Act; and

(2)        relates to the over-the-counter derivatives market in Australia relating to the wholesale price of electricity, gas, or renewable energy certificates.

22.5     The exemption in paragraph 22.4 only applies if:

(1)        the person who provides the designated service:

(a)     is acting in the capacity of an agent of a person who is registered as, or is taken to be, a Market Participant under the National Electricity Rules; or

(b)     is acting in the capacity of an agent of a person who is registered as a Market Participant under the Wholesale Electricity Market Rules; and

(c)     one of the following applies:

(i)      the person holds an AFS licence that authorises that person to provide the designated service; or

(ii)     the person is appointed as an authorised representative under section 916A of the Corporations Act 2001 to provide the designated service; or

(iii)    the person is, by regulation made under section 134 of the Electricity Industry Act 2004 (WA), exempt from the requirement to hold an AFS licence that authorises that person to provide the designated service; and

(2)      the person who is the customer of the designated service:

(a)     is registered as, or is taken to be, a Market Participant under the National Electricity Rules; or

(b)     is registered as a Market Participant under the Wholesale Electricity Market Rules; or

(c)     is acting in the capacity of an agent of a person so registered.

22.6     In this Chapter:

(1)      ‘AFS licence’ refers to an Australian financial services licence granted under section 913B of the Corporations Act 2001;

(2)      ‘renewable energy certificates’ are transferable instruments created under Commonwealth, State or Territory laws and issued to a person who generates electricity from a renewable energy source (or otherwise reduces non-renewable energy consumption);

(3)      ‘National Electricity Rules’ refers to the Rules made pursuant to the National Electricity Law set out in the Schedule to the National Electricity (South Australia) Act 1996 (SA);

(4)      ‘Wholesale Electricity Market Rules’ refers to the market rules made under the Electricity Industry (Wholesale Electricity Market) Regulations 2004 (WA).

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.

CHAPTER 23     Anti-Money Laundering and Counter-Terrorism Financing Rules for designated remittance arrangements

  

23.1     These Anti-Money Laundering and Counter-Terrorism Financing Rules
(Rules) are made under section 229 of the Anti-Money Laundering and
Counter-Terrorism Financing Act 2006
(AML/CTF Act) for subparagraphs 10(1)(a)(v) and 10(1)(b)(v) of that Act.

23.2     For subparagraphs 10(1)(a)(v) and 10(1)(b)(v) of the AML/CTF Act, the following persons are specified:

(1)      a person who in the course of carrying on a law practice, accepts money or property from a transferor entity to be transferred under a designated remittance arrangement and/or makes money or property available to an ultimate transferee entity as a result of a transfer under a designated remittance arrangement; and

(2)      a person who in the course of carrying on an accounting practice, accepts money or property from a transferor entity to be transferred under a designated remittance arrangement and/or makes money or property available to an ultimate transferee entity as a result of a transfer under a designated remittance arrangement. 

23.3     In this Chapter:

(1)      ‘accounting practice’ means a business carried out by either of the following:

(1)     an accountant (however described) that supplies professional accounting services; or

(2)     a partnership or company that uses accountants (however described) to supply professional accounting services;

(2)      ‘law practice’ means a business carried out by either of the following:

(1)     a legal practitioner (however described) that supplies professional legal services; or

(2)     a partnership or company that uses legal practitioners (however described) to supply professional legal services.  

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.

CHAPTER 24     Anti-Money Laundering and Counter-Terrorism Financing Rules for movements of physical currency into or out of Australia

  

24.1     For the purposes of paragraph 53(8)(b) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, a report in respect of a movement of physical currency into or out of Australia must contain the following information:

(1)      the full name of the person who is to move the physical currency into or out of Australia (the person);

(2)      if the person is an individual:

(a)    the person’s residential address;

(b)    the person’s residential telephone number;

(c)    the person’s date of birth;

(d)   the person’s place of birth (including the town or city and country of birth);

(e)    the person’s ABN (if any); and

(f)    the person’s country or countries of citizenship;

(3)      if the person is not an individual:

(a)    the address of the person’s registered office or principal place of business;

(b)    the person’s telephone number; and

(c)    the person’s ACN or ARBN or ABN (if any);

(4)      if the person is not an Australian resident—the person’s address and telephone number while in Australia;

(5)      the person’s occupation, business or principal activity;

(6)      a statement as to whether the physical currency is to be moved into Australia or moved out of Australia;

(7)      if the person is to bring the physical currency into Australia or is to take the currency out of Australia:

(a)    the unique identifying number of the passport pursuant to which the person is travelling and name of the country that issued that passport;

(b)    where practicable – the unique identifying number of each other passport held by the person and the country of issue for each passport;

(c)    the name of the city, town or port in Australia from which the person is to depart or at which the person will enter;

(d)   the name of the country and the city, town or port from which, or to which, the physical currency is to be moved;

(e)    the date on which the person is to bring the currency into or take the currency out of Australia;

(f)    the number of the flight or the name of the vessel on which the person is to bring the currency into or take the currency out of Australia;

(g)    the full name, residential address (not being a PO Box address), ACN or ABN or ARBN (where applicable), telephone number, occupation and business or principal activity of any person to whom the physical currency is to be delivered;

(h)    a statement as to whether the person was requested by a customs officer or police officer to provide the report for the purposes of clause 53; 

(8)      if the person is to send the physical currency into or out of Australia:

(a)    the name of the country and the city, town or port from which the physical currency is to be despatched;

(b)    the name of the country and the city, town or port to which the physical currency is to be despatched;

(c)    the means by which the physical currency is to be sent – for example, by post, by ship or through a courier or another person;

(d)   the name, address and telephone number of the individual or service provider who is to move the physical currency on behalf of the person;

(e)    if the physical currency is to be shipped – the name of the vessel on which it is to be shipped, if known; and

(f)    the date on which the physical currency is to be sent into or out of Australia, or – in the case of physical currency being posted – the date on which it was posted; 

(g)    the full name, address (not being a PO Box address) occupation, business or principal activity, telephone number and ACN or ARBN or ABN (to the extent the information is known) of any person to whom the physical currency is to be sent; 

(9)      if the person is to move the physical currency into or out of Australia on behalf of another person:

(a)    the name of that person;

(b)    if that person is an individual – his or her residential address and residential telephone number;

(c)    if that person is an individual – his or her ABN (if any);

(d)   if that person is not an individual:

(i)       the address and telephone number of that person’s registered office or principal place of business; and

(ii)      any ACN or ARBN or ABN of that person (if known);

(e)    the occupation or the business or principal activity of that person; and

(f)    the full name, address (not being a PO Box address), occupation, business or principal activity, telephone number and ACN or ARBN or ABN (to the extent the information is known) of the person to whom the physical currency is to be delivered;

(10)    whether the physical currency to be moved is in Australian currency or foreign currency; and

(11)    the name of the currency and the amount as denominated in that currency;

24.2     In this Chapter:

(1)     ‘passport’ means:

(a)    a passport issued by the Commonwealth; or

(b)    a passport or a similar document issued for the purpose of international travel, that:

(i)       contains a photograph and the signature of the person in whose name the document is issued; and

(ii)      is issued by a foreign government, the United Nations or an agency of the United Nations.

CHAPTER 25     Anti-Money Laundering and Counter-Terrorism Financing Rules for receipts of physical currency from outside Australia

  

25.1     For the purposes of paragraph 55(5)(b) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, a report must contain the following details:

(1)      the full name of the person receiving the physical currency (the person);

(2)      if the person is an individual:

(a)    the person’s residential address;

(b)    the person’s residential telephone number;

(c)    the person’s date of birth;

(d)   the person’s place of birth (including the town or city and country of birth);

(e)    the person’s ABN (if any); and

(f)    the person’s country or countries of citizenship;

(3)      if the person is not an individual:

(a)    the address of the person’s registered office or principal place of business;

(b)    the person’s telephone number; and

(c)    the person’s ACN or ARBN or ABN (if any);

(4)      if the person is not an Australian resident—the person’s address and telephone number while in Australia;

(5)      the person’s occupation, business or principal activity;

(6)      whether the physical currency being received is in Australian currency or foreign currency;

(7)      the name of the currency and the amount as denominated in that currency;

(8)      the name, address (not being a PO Box address) and telephone number of the person who sent the physical currency to the recipient;

(9)      the means by which the physical currency has been moved to the person from outside Australia – for example, by hand delivery by a person who has travelled to Australia, by post, by ship or by courier;

(10)    the name of the person or the service provider who moved the physical currency to the recipient from outside Australia;

(11)    the name of the city, town or port in Australia at which the physical currency was received;

(12)    if the recipient is receiving the physical currency on behalf of another person;

(a)    the name of that person;

(b)    if that person is an individual – his or her residential address and residential telephone number;

(c)    if that person is not an individual:

(i)       the address and telephone number of that person’s registered office or principal place of business; and

(ii)      any ACN or ARBN or ABN of that person (if known);

(d)   the occupation or the business or principal activity of that person; and

(e)    the full name, address (not being a PO Box address), occupation, telephone number and business or principal activity of the person to whom the physical currency is to be delivered; and

(13)    if the recipient knows, the date on which the physical currency entered Australia.

25.2     In this Chapter:

(1)      ‘passport’ means:

(a)    a passport issued by the Commonwealth; or

(b)    a passport or a similar document issued for the purpose of international travel, that:

(i)       contains a photograph and the signature of the person in whose name the document is issued; and

(ii)      is issued by a foreign government, the United Nations or an agency of the United Nations.

CHAPTER 26     Anti-Money Laundering and Counter-Terrorism Financing Rules for movements of bearer negotiable instruments into or out of Australia

  

26.1     For the purposes of paragraph 59(2)(b) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, a report in respect of one or more bearer negotiable instruments must contain the following information:

(1)      the full name of the person giving the report (the person);

(2)      the person’s residential address; 

(3)      if the person is an Australian resident:

(a)    the person’s residential; and

(b)    business  telephone numbers;

(4)      if the person is not an Australian resident—the person’s:

(a)    residential address; and

(b)    residential telephone number while in Australia;

(5)      the person’s date of birth;

(6)      the person’s place of birth (including the town or city and country of birth);

(7)      the person’s country or countries of citizenship;

(8)      the person’s occupation, business or principal activity;

(9)      the unique identifying number of the passport pursuant to which the person is travelling and the name of the country that issued that passport;

(10)    where practicable – the unique identifying number of each other passport held by the person and the country of issue for each passport;

(11)    a statement as to whether the person is leaving or arriving in Australia;

(12)    the name of the city, town or port in Australia from which the person is departing or at which the person is entering;

(13)    the date on which the person is entering or leaving Australia;

(14)    the number of the flight or the name of the vessel on which the person is entering or leaving Australia;

(15)    a description of the type of bearer negotiable instrument; 

(16)    the currency in which the bearer negotiable instrument is denominated;

(17)    the amount payable, if any, under the bearer negotiable instrument in that currency;

(18)    the full name of the issuer or drawer of the bearer negotiable instrument;

(19)    the name of the country, and the city or  town in that country, at which the bearer negotiable instrument was issued;

(20)    any reference number that appears on the face of the bearer negotiable instrument;

(21)    the name of the country, and the city, town or port in that country, to which the bearer negotiable instrument is being carried;

(22)    the name of the country, and the city, town or port in that country, from which the bearer negotiable instrument is being carried;

(23)    the full name of any payee (where applicable) of the bearer negotiable instrument;

(24)    if the person is to deliver the bearer negotiable instrument to another person:

(a)    where that other person is an individual:

(i)       the full name of that individual;

(ii)      the residential address and residential telephone number of that individual; 

(iii)     if known – the ABN (if any) of that individual; and

(iv)     the occupation, business or principal activity of that individual,

(b)    in any other case:

(i)       the full name of that other person;

(ii)      the address and telephone number of the registered office or principal place of business of that other person;

(iii)     if known – the ACN or ARBN or ABN (if any) of that other person ;  and

(iv)     the business or principal activity of that other person;

(25)    if the person is carrying the bearer negotiable instrument on behalf of another person:

(a)    where that other person is an individual:

(i)       the full name of that individual;

(ii)      the residential address and residential telephone number of that individual;

(iii)     if known – the ABN (if any) of that individual; and

(iv)     the occupation, business or principal activity of that individual;

(b)    in any other case:

(i)       the full name and (if known) business name of that other person;

(ii)      the address and telephone number of the registered office or principal place of business of that other person;

(iii)     if known – the ACN or ARBN or ABN (if any) of that other person; and

(iv)     the business or principal activity of that other person.

26.2     In this Chapter:

(1)      ‘passport’ means:

(a)    a passport issued by the Commonwealth; or

(b)    a passport or a similar document issued for the purpose of international travel, that:

(i)       contains a photograph and the signature of the person in whose name the document is issued; and

(ii)      is issued by a foreign government, the United Nations or an agency of the United Nations.

CHAPTER 27     Anti-Money Laundering and Counter-Terrorism Financing Rules for registrable details — Register of providers of designated remittance services

  

27.1     For the purposes of Part 6 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 the registrable details as defined in section 5 are:

(1)      any business name under which the person is operating;

(2)      a description of whether the person is operating as a sole trader, company, partnership, trust or through any other legal structure;

(3)      the full street address at which the person provides registrable designated remittance services, including the full street address of each branch of the person;

(4)      if the person has an ACN or ARBN – that number;

(5)      if the person has an ABN – that number;

(6)      if the person holds an Australian financial services licence – the number of that licence;

(7)      the person’s telephone number at its principal place of business;

(8)      the person’s facsimile number at its principal place of business;

(9)      the person’s email address at its principal place of business;

(10)    the full name, date of birth, residential address and residential telephone number of:

(a)    if the person is a sole trader – that individual; or

(b)    if the person comprises a partnership – each partner;

(c)    in any other case, except if the person is a company – each individual who has effective control of the business;

(11)    for the individual who is, or is to be, the primary contact for any dealings with AUSTRAC, the individual’s:

(a)    full name; and

(b)    position or title; and

(c)    telephone number; and

(d)   facsimile number; and

(e)    email address;

(12)    a description of business carried on by the person including: 

(a)    the main destination(s) where money or property is to be received or is likely to be received as a result of a transfer by the person under a designated remittance arrangement;

(b)    the main destination(s) from which money or property is to be transferred or is likely to be transferred by the person under a designated remittance arrangement; and

(c)    the nature of any other business carried on by the person at the address(es) referred to in paragraph 27.1(3);

(13)    if the person provides a registrable designated remittance service through an agent:

(a)    if the agent is an individual – the full name, date of birth, residential address, telephone number and facsimile number of the agent;

(b)    if the agent is not an individual – the full name and business name of the agent, the ACN or ARBN and ABN (if applicable), and the address, telephone number and facsimile number of the agent’s registered office or principal place of business;

(14)    the date on which the person commenced or is to commence offering registrable designated remittance services.

27.2     In this Chapter:

(1)      ‘company’ has the same meaning as in the Corporations Act 2001;

(2)      ‘destination’ includes country and town or city of that country.

 

 

 

 

 

 

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.


 

CHAPTER 29     Record-keeping obligations under section 107

 

29.1     These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for paragraph 107(1)(b) of that Act.

 

29.2     For paragraph 107(1)(b) of the AML/CTF Act the following records are declared to be exempt:

 

(1)     customer-specific documents (such as account statements), correspondence and publicly-available statements, forms and documents which a reporting entity routinely provides to its customers, such as disclosure statements, financial or investment analysis or summary reports;

 

(2)     product or service information, which replicate information retained as a record by the reporting entity;

 

(3)     general correspondence with customers, such as, but not limited to, promotional materials and general correspondence relating to fees, service charges, interest rate changes, terms and conditions, technology changes and legislative changes which are not specific to a particular customer;

 

(4)     overdrawn notices and accompanying correspondence;

 

(5)     information provided to a customer of a reporting entity on the methods by which a designated service is to be delivered;

 

(6)     correspondence or similar documents provided by a reporting entity to a customer which relate to, or otherwise document, product or service enquiries or comments from customers, such as customer experience records or requests for information on a product;

 

(7)     records of interviews or conversations with customers, such as recordings of phone conversations where instructions are received from the customer unless the information contained in such interviews or conversations relates to a reporting obligation under the AML/CTF Act.

 

 

Reporting entities should note that exemptions declared by this Chapter only affect record-keeping obligations derived from the AML/CTF Act and do not affect reporting entities’ record-keeping obligations under any other legislation.

 

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.


 

CHAPTER 30     Disclosure certificates obtained by reporting entities in the course of conducting applicable customer identification procedures

 

30.1     These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for subparagraphs 91(1)(d)(ii), 91(2)(d)(ii) and 91(3)(d)(ii) of that Act, to specify requirements for paragraphs 84(3)(b), 85(3)(b) and 86(1)(c), respectively, of that Act.

30.2     A reporting entity may request that a customer of the type described in paragraphs 30.3 to 30.9 provide a disclosure certificate only:

(1)        to verify the information specified in these Rules; and

(2)        if the reporting entity has considered the risk-based systems and controls in place under its AML/CTF program and has reached a conclusion that the information cannot otherwise be reasonably verified.

Companies (other than foreign companies)

30.3     For paragraph 4.3.18, a disclosure certificate for a domestic company must:

(1)        be signed or otherwise authenticated by a director or secretary or AML/CTF Compliance Officer or equivalent officer of the company; and

(2)        contain the name and address of each beneficial owner of the company (if any) of a proprietary or private company.

Foreign companies

30.4     For paragraphs 4.3.19 and 4.3.20, a disclosure certificate for a foreign company registered in Australia must:

(1)        be signed or otherwise authenticated by a director or secretary or AML/CTF Compliance Officer or equivalent officer of the company; and

(2)        contain information about whether the company is registered by the relevant foreign registration body and if so, whether it is registered as a private or public company or some other type of company.

30.5     For a foreign company not registered in Australia a disclosure certificate must be signed or otherwise authenticated by a director or secretary or AML/CTF Compliance Officer or equivalent officer of the company and contain information about:

(1)        the full name of the company; and

(2)        whether the company is registered by the relevant foreign registration body and if so:

(a)        any identification number issued to the company by the relevant foreign registration body upon the company’s formation, incorporation or registration;

(b)        whether it is registered as a private or public company or some other type of company by the relevant foreign registration body; and

(c)        the jurisdiction of incorporation of the foreign company as well as the jurisdiction of the primary operations of the foreign company and the location of the foreign stock or equivalent exchange (if any).

Trusts

30.6     For paragraph 4.4.16, a disclosure certificate for a trust must:

(1)        be signed or otherwise authenticated by a trustee of the trust; and

(2)        verify KYC information about a trust, where the verification is for the purposes of a procedure of a kind described in paragraph 4.4.6 or 4.4.11, if the KYC information to be verified is not otherwise reasonably available from the sources described in paragraph 4.4.15.

Partnerships

30.7     For paragraph 4.5.8, a disclosure certificate for a partnership must:

(1)        be signed or otherwise authenticated by a partner of the partnership; and

(2)        verify KYC information about a partnership, where the verification is for the purposes of a procedure of a kind described in paragraph 4.5.6, if the KYC information to be verified is not otherwise reasonably available from the sources described in paragraph 4.5.7.

Associations

30.8     For paragraph 4.6.8, a disclosure certificate for an incorporated or unincorporated association must:

(1)        be signed or otherwise authenticated by a chairman or secretary or treasurer or AML/CTF Compliance Officer or equivalent officer of the association; and

(2)        verify KYC information about an association, where the verification is for the purposes of a procedure of a kind described in paragraph 4.6.6, if the KYC information to be verified is not otherwise reasonably available from the sources described in paragraph 4.6.7.

Registered co-operatives

30.9     For paragraph 4.7.8, a disclosure certificate for a registered co-operative must be signed or otherwise authenticated by the chairman or secretary or treasurer or AML/CTF Compliance Officer or equivalent officer and verify KYC information about a registered co-operative, where the verification is for the purposes of a procedure of a kind described in paragraph 4.7.6, if the KYC information to be verified is not otherwise reasonably available from the sources described in paragraph 4.7.7.

 

 

 

 

 

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.


 

CHAPTER 31     Exemption of certain types of transactions relating to currency exchange transactions

 

31.1     These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 247(3) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

31.2     Subject to paragraph 31.3, the AML/CTF Act does not apply to the provision of a designated service of the kind described in item 50 of table 1 in subsection 6(2) of the AML/CTF Act.

31.3     The exemption in paragraph 31.2 applies only if:

(1)        the designated service is provided in the course of carrying on a business of providing traveller accommodation; and

(2)        the customer of the designated service is a registered guest at the place of the traveller accommodation; and

            (3)        the currency exchanged must not exceed

(a)        $500 (Australian or the foreign equivalent) per registered guest per day; and

(b)        $1,000 (Australian or the foreign equivalent) per room account per day; and

(4)        any charge relating to the designated service that is imposed on the registered guest, is levied to the room account of the registered guest; and

(5)        the provider of the designated service does not provide any other type of designated services described in subsections 6(2)-(5) of the AML/CTF Act, excepting the provision of the designated service specified in item 47 of table 1 in subsection 6(2) of the AML/CTF Act provided in accordance with the conditions of the Chapter 32 AML/CTF Rules relating to safe deposit boxes or similar facilities.

31.4     In this Chapter:

(1)        ‘registered guest’ means an individual who engages sleeping accommodation at the traveller accommodation, the period of which includes the time at which the designated service is provided;

(2)        ‘traveller accommodation’ means

                        (a)        backpacker; or

                        (b)        bed and breakfast; or

                        (c)        hotel; or

                        (d)       motel; or

                        (e)        resort; or

                        (f)        serviced apartment.

 

 

 

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.

 


 

CHAPTER 32     Exemption of certain types of transactions relating to safe deposit boxes or similar facilities

 

32.1     These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 247(3) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

32.2     Subject to paragraph 32.3, the AML/CTF Act does not apply to a designated service of the kind described in item 47 of table 1 in subsection 6(2) of the AML/CTF Act.

32.3     The exemption in paragraph 32.2 applies only if:

(1)        the designated service is provided in the course of carrying on a business of providing traveller accommodation; and

(2)        the customer of the designated service is a registered guest at the place of the traveller accommodation; and

(3)        the designated service is provided through the provision of a safe deposit box or similar facility located either:

(a)        in the room of the registered guest and controlled by the registered guest; or

(b)        outside the room of the registered guest but within the place of the traveller accommodation and controlled by the provider of the traveller accommodation.

32.4     In this Chapter:

(1)        ‘registered guest’ means an individual who engages sleeping accommodation at the traveller accommodation, the period of which includes, or is within 1 day of, the time at which the designated service is provided;

(2)        ‘traveller accommodation’ means

                        (a)        backpacker; or

                        (b)        bed and breakfast; or

                        (c)        hotel; or

                        (d)       motel; or

                        (e)        resort; or

                        (f)        serviced apartment.

 

           

 

 

 

 

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.

 


 

CHAPTER 33     Applicable customer identification procedure for purchases and sales of bullion valued at less than $5,000

 

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

33.2     Subject to paragraph 33.3 below, Division 4 of Part 2 of the AML/CTF Act does not apply to a designated service that:

(1)           is of a kind described in items 1 or 2 of table 2 in subsection 6(3) of the AML/CTF Act; and

(2)           the retail value of the bullion is less than $5,000 (Australian or the foreign equivalent).

33.3     The exemption in paragraph 33.2 does not apply where a reporting entity determines in accordance with its appropriate risk-based systems and controls that:

(1)           further KYC information should be collected about a customer                   for ongoing customer due diligence purposes; or

(2)           KYC information should be updated or verified about a                              customer for ongoing customer due diligence purposes.

 

33.4     In this Chapter:

         (1)           ‘KYC information’ has the meaning given by Chapter 1 of the                    Anti-Money Laundering and Counter-Terrorism Financing                                     Rules Instrument 2007 (No. 1).

 

 

 

 

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.


 

CHAPTER 34     Affixing of notices about cross-border movement reporting obligations

 

 

34.1     These Rules are made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for paragraphs 61(1)(b) and 61(2)(b) of that Act.

34.2     For section 61(1)(b), a written notice must be in the following form:

(1)        a self-standing sign; or

(2)        a digital/electronic sign; or

(3)        a sign in any other material form.

34.3     For section 61(1)(b), a written notice must contain the following content, with or without the inclusion of any other words:

Australian Government

Australian Transaction Reports and Analysis Centre

Are you carrying funds into or out of Australia?

By law you must now:

If asked by a Customs or police officer, report travellers cheques, cheques, money orders or any other bearer negotiable instrument of any amount

Always report AUD$10,000 cash or more (or foreign currency equivalent)

 

Please note there is no limit to the funds you can carry in and out of Australia

 

34.4     For the purposes of section 61(2)(b), a written notice may be affixed at:

 

(1)        any port, airport, wharf, or boarding station that is appointed (and, if applicable, the limits of which are fixed) under section 15 of the Customs Act 1901; and


 

(2)        a place to which section 234AA of the Customs Act 1901 applies that is not a place, or a part of a place, referred to in paragraph 34.4(1).

34.5     In this Chapter:

(1)        'self-standing sign' includes portable or temporary signage (however described);

(2)        'digital/electronic sign' includes a monitor or screen (however described) on which electronic images and/or words are capable of being displayed;

(3)        the definition of ‘writing’ in section 25 of the Acts Interpretation Act 1901 applies to the form of the written notice.

 

 

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.


CHAPTER 35     Exemption from applicable customer identification procedures for correspondent banking relationships

 

 

35.1     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).

35.2     Division 4 of Part 2 of the AML/CTF Act does not apply to a reporting entity which is a financial institution providing a designated service that:

                        (1)        is either:

               (a)     of a kind described in item 2 of table 1 in subsection            6(2) of the AML/CTF Act; or

               (b)     of a kind described in item 3 of table 1 in subsection            6(2) of the AML/CTF Act; and

            (2)        relates to a correspondent banking relationship; and

            (3)        occurs in one of the circumstances set out in section 100 of the        AML/CTF Act; and

            (4)        relates to signatories to the account who are employees of the          other financial institution.

 

 

 

 

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.



 

CHAPTER 36     Exemption of certain designated services within a corporate structure

 

 

36.1     These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 and subsection 247(3) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

 

36.2     Subject to paragraph 36.5, the AML/CTF Act does not apply to a designated service that is:

(1)        of a kind described in any item of table 1 in subsection 6(2) of the AML/CTF Act; and

(2)        provided to a customer that is related to the entity providing the service as described in paragraph 36.4.

36.3     Subject to paragraph 36.5, the AML/CTF Act does not apply to a designated service that is:

(1)        of a kind described in item 48 or item 49 of table 1 in subsection 6(2) of the AML/CTF Act;

(2)        provided to a lender; and

(3)        provided where the borrower is related to the entity providing the service as described in paragraph 36.4.

36.4     For the purposes of this Chapter a customer and an entity providing a designated service are related if, and only if:

(1)        the customer and the entity providing the service are related bodies corporate within the meaning of the Corporations Act 2001;

(2)        the customer is controlled by the entity providing the service;

(3)        the entity providing the service is controlled by the customer;

            or

(4)        a third entity controls both the customer and the entity providing the service.

36.5     The exemptions in paragraph 36.2 and paragraph 36.3 only apply if:

(1)        the customer is resident in Australia; or

(2)        if the customer is not resident in Australia, prior to providing the designated service, the entity providing the service has concluded on reasonable grounds that the money-laundering and terrorism financing risk of providing the service is the same as, or lower than, these risks would be in providing the same service to a substantially similar customer in Australia.

36.6     In this Chapter:

                     ‘control’ has the same meaning as in the Corporations Act 2001.

 

 

 

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.


 


 

CHAPTER 37     Exemption from threshold transaction reporting for certain designated services

 

37.1     These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 44(4) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

 

37.2     Section 43 of the AML/CTF Act does not apply to a designated service that involves a threshold transaction in circumstances where:

 

(1)        the designated service is provided by an ADI to a customer which is an ADI; or

 

(2)        the designated service is provided by the Reserve Bank of Australia to a customer which is the holder of an Exchange Settlement Account; or

 

(3)        the designated service is provided by the holder of an Exchange Settlement Account to a customer which is the holder of an Exchange Settlement Account; or

 

(4)        the designated service is of a kind described in:

 

(a)        item 51 of table 1 in subsection 6(2) in the AML/CTF Act; or

 

(b)        item 53 of table 1 in subsection 6(2) in the AML/CTF Act;

 

and relates wholly to a transaction between one ADI and another ADI.

 

37.3     In this Chapter:

 

(1)        ‘Exchange Settlement Account’ means an account held at the Reserve Bank of Australia which is used for the final settlement of obligations between Exchange Settlement Account holders.

 

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.


 

CHAPTER 38     Exemption from applicable customer identification procedures for the sale of shares for charitable purposes

 

38.1     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).

38.2     Division 4 of Part 2 of the AML/CTF Act does not apply to a designated service that:

(1)        is a disposal of the kind described in item 33 of table 1 in subsection 6(2) of the AML/CTF Act; and

(2)        the disposal occurs on a prescribed financial market; and

(3)        the value of the security does not exceed $500; and

(4)        the agent gives the proceeds of the disposal directly to a charitable fund or charitable institution that provides an undertaking to:

(a)        distribute, by cheque and/or electronic funds transfer, the proceeds of the disposal of the security to a deductible gift recipient before the end of the financial year in which it receives the proceeds; and

(b)        list on its public website within 14 business days, for a period of 12 months, the details of the distribution of the proceeds of the disposal of the security to the deductible gift recipient.

38.3     In this Chapter:

(1)        ‘deductible gift recipient’ has the meaning given by section 995.1 of the Income Tax Assessment Act 1997;

(2)        ‘prescribed financial market’ has the meaning given by section 9 of the Corporations Act 2001;

(3)        ‘charitable fund’ means a fund established in Australia for public charitable purposes pursuant to items 1.5 or 1.5B of section 50-5 of the Income Tax Assessment Act 1997;

(4)        ‘charitable institution’ means an establishment, organisation or association that is instituted and operated in Australia to advance or promote a charitable purpose pursuant to item 1.1 of section 50-5 of the Income Tax Assessment Act 1997.

 

 

 

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.


 


 

CHAPTER 39     Exemption from applicable customer identification procedures - premium funding loans for a general insurance policy

 

39.1     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).

 

39.2     Section 32 of the AML/CTF Act does not apply to a designated service that:

 

(1)        is of a kind described in item 6 of table 1 in subsection 6(2) of the AML/CTF Act and is a premium funding agreement; or

 

(2)        is of a kind described in item 7 of table 1 in subsection 6(2) of the AML/CTF Act and is in relation to a loan that is a premium funding agreement.

 

39.3     This Chapter is repealed on 30 June 2011.

 

39.4     In this Chapter:

 

(1)        'premium funding agreement' means an agreement under which—

 

(a)        a person agrees to make a loan to the customer to be applied

(i)         against an amount payable for premiums under a policy of insurance that is not a life policy or sinking fund policy; or

 

(ii)               against an amount payable in connection with such a policy of general insurance (including, but not limited to, fees for advice or services provided in connection with such a policy and taxes payable in connection with such a policy);

 

and

 

(b)        the person obtains from the customer, as security for payment of the loan, one or more of the following:

 

(i)         an assignment of the customer’s interest in the policy;

 

(ii)               an assignment of all amounts payable under the policy;

 

(iii)             a power of attorney providing at least a right to cancel the policy.

 

 

 

 

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.

 

 


 

 

CHAPTER 40     Definition of ‘exempt legal practitioner service’

 

 

40.1     These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for the definition of ‘exempt legal practitioner service’ in section 5 of that Act.

40.2     A service is taken to be an ‘exempt legal practitioner service’ if:

(1)        it is provided in the ordinary course of carrying on a law practice and is a custodial or depository service other than conduct that under section 766E(1) of the Corporations Act 2001 constitutes providing a custodial or depository service; or

(2)        it is provided in the ordinary course of carrying on a law practice and is a safe deposit box or similar facility other than in relation to physical currency.

40.3     In this Chapter:

‘law practice’ means a business carried out by either of the following:

(1)        a legal practitioner (however described) that supplies professional legal services; or

(2)        a partnership or company that uses legal practitioners (however described) to supply professional legal services.

 

 

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.

 


 

 

 

CHAPTER 41     Cashing out of superannuation fund low balance accounts

 

41.1     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).

41.2     Subject to paragraph 41.3, Division 4 of Part 2 of the AML/CTF Act does not apply to a designated service that is of a kind described in item 43(a) of table 1 in subsection 6(2) of the AML/CTF Act.

41.3     The exemption in paragraph 41.2 applies only if:

(1)        on the date the member applies for the interest in the superannuation fund to be cashed out, the value of the interest is not greater than $1,000;

(2)        no additional contributions are accepted from the member in relation to the interest;

(3)        the whole of the interest of the member in the superannuation fund is cashed out; and

(4)        the account in which the interest of the member in the superannuation fund was held is closed as soon as practicable after the cashing out of the interest of the member.

41.4     In this Chapter:

(1)        ‘member’ has the same meaning as the customer of the designated service in item 43 of table 1 in subsection 6(2) of the AML/CTF Act.

 

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.


 

 

CHAPTER 42     Commodity warehousing of grain

 

42.1     These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for subsection 247(3) of that Act.

42.2     The AML/CTF Act does not apply to a designated service that:

(1)        is of a kind described in item 6 of table 1 in subsection 6(2) of the AML/CTF Act; and

(a)        is provided to a customer who is a grain grower who delivers grain into a grain pool; and

(b)        the maximum loan amount is determined by the value of the grain at the time the customer delivers it into the grain pool; and

(c)        the loan amount does not exceed the value of the grain at the time the customer delivers it into the grain pool; and

(d)       loan repayments made by the customer are met from the grain pool payments made from the grain pool to which the grain has been delivered; or

(2)        is of a kind described in item 7 of table 1 in subsection 6(2) of the AML/CTF Act; and

(a)        the transactions are conducted by the customer in relation to a loan that is covered by sub-paragraph 42.2(1).

42.3     In this Chapter:

(1)        ‘grain’ means grains, oil seeds and pulses of all kinds, qualities and varieties including wheat, barley, oats, sorghum, maize and rice;

(2)        ‘grain pool’ means a grouping of grain into a pool based on classification for the purposes of sale. After all of the grain in a pool from a particular harvest has been sold and all distributions have been paid, that pool ceases to exist.

 

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.


 

CHAPTER 43     Friendly Society closed funds

 

43.1     These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 247(4) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

43.2     Subject to paragraph 43.3, the AML/CTF Act does not apply to a designated service that is of a kind described in:

(1)        item 37 of table 1 in subsection 6(2); or

(2)        item 38 of table 1 in subsection 6(2); or

(3)        item 39 of table 1 in subsection 6(2).

43.3     The exemption in paragraph 43.2 applies if:

(1)        the person providing the designated service is a friendly society; and

(2)        the designated service is provided in relation to an approved benefit fund and the approved benefit fund rules state that the approved benefit fund:

(a)        is closed to new members; and

(b)        new policies cannot be written to the approved benefit fund.

43.4     In this Chapter:

(1)        ‘approved benefit fund’ has the meaning given by section 16B of the Life Insurance Act 1995 (Cth);

(2)        ‘approved benefit fund rules’ has the meaning given by section 16B of the Life Insurance Act 1995 (Cth);

(3)        ‘friendly society’ has the meaning given by section 16C of the Life Insurance Act 1995 (Cth).

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.


 

CHAPTER 44     Removing a Person’s Name and Registrable Details from the Register of Providers of Designated Remittance Services

 

44.1     These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for the purposes of paragraph 75(4)(b) of that Act.

44.2     If the AUSTRAC CEO is of the opinion that the consequences of keeping a person’s name and registrable details on the Register of Providers of Designated Remittance Services (Register) constitute an unacceptable money laundering or terrorism financing risk, the AUSTRAC CEO may remove the person’s name and registrable details from the Register.

44.3     For the purposes of paragraph 44.2 and without limiting the matters that may be considered, the following must be considered by the AUSTRAC CEO when forming an opinion:

(1)        If the person is an individual, whether:

(a)        the person has been arrested, charged, prosecuted and/or convicted in relation to money laundering, financing of terrorism, an offence under the AML/CTF Act, or an offence under the Financial Transaction Reports Act 1988 (FTR Act);

(b)        a representative of the person has been arrested, charged, prosecuted and/or convicted in relation to money laundering, financing of terrorism, an offence under the AML/CTF Act, or an offence under the FTR Act;

(c)        a civil penalty order under the AML/CTF Act was made in relation to the person;

(d)       a civil penalty order under the AML/CTF Act was made in relation to a representative of the person;

(2)        If the person is a body corporate, whether:

 

(a)        the person has been charged, prosecuted and/or convicted in relation to money laundering, financing of terrorism, an offence under the AML/CTF Act, or an offence under the FTR Act;

 

(b)        a representative of the person has been arrested, charged, prosecuted and/or convicted in relation to money laundering, financing of terrorism, an offence under the AML/CTF Act, or an offence under the FTR Act;

 

(c)        a civil penalty order under the AML/CTF Act was made in relation to the person;

 

(d)       a civil penalty order under the AML/CTF Act was made in relation to a representative of the person;

 

(3)        If the person is a trust, whether:

 

(a)        a trustee has been arrested, charged, prosecuted and/or convicted in relation to money laundering, financing of terrorism, an offence under the AML/CTF Act, or an offence under the FTR Act;

 

(b)        a representative of the person has been arrested, charged, prosecuted and/or convicted in relation to money laundering, financing of terrorism, an offence under the AML/CTF Act, or an offence under the FTR Act;

 

(c)        a civil penalty order under the AML/CTF Act was made in relation to a trustee;

 

(d)       a civil penalty order under the AML/CTF Act was made in relation to a representative of the person;

 

(4)        If the person is a partnership, whether:

 

(a)        a partner has been arrested, charged, prosecuted and/or convicted in relation to money laundering, financing of terrorism, an offence under the AML/CTF Act, or an offence under the FTR Act;

 

(b)        a representative of the person has been arrested, charged, prosecuted and/or convicted in relation to money laundering, financing of terrorism, an offence under the AML/CTF Act, or an offence under the FTR Act;

 

(c)        a civil penalty order under the AML/CTF Act was made in relation to a partner;

 

(d)       a civil penalty order under the AML/CTF Act was made in relation to a representative of the person.

 

44.4                 (1)        If the AUSTRAC CEO removes a person’s name and

registrable details from the Register, the AUSTRAC CEO must within 7 days give the person written notice of the removal.

 

(2)        The notice must:

 

(a)        set out the grounds on which the opinion of the AUSTRAC CEO was formed; and

 

(b)        include a statement that the person may make written submissions in response to the notice within 28 days of the date of the notice; and

 

(c)        include a statement that any written submissions in response to the notice may be discussed by the AUSTRAC CEO with other persons as mentioned in sub-paragraph 44.4(3)(b).

 

(3)        If a submission is made in response to the notice, the AUSTRAC CEO:

 

(a)        must have regard to the submission; and

 

(b)        may discuss any matter contained in the submission with any persons the AUSTRAC CEO considers appropriate for the purpose of assessing the truth of the matter.

44.5     If a person who, pursuant to paragraph 44.2, has had their name and registrable details removed from the Register, applies to the AUSTRAC CEO to have their name and registrable details entered on the Register, the application must contain evidence to satisfy the AUSTRAC CEO that the provision of registrable designated remittance services by the person will not constitute an unacceptable money laundering or terrorism financing risk.

44.6     A reference in this Chapter to a person or a representative who has been convicted of an offence includes a reference to a person in respect of whom an order has been made under section 19B of the Crimes Act 1914, or under a corresponding provision of a law of a State, a Territory or a foreign country, in relation to the offence.

 

44.7     In this Chapter:

 

(1)        ‘person’ has the same meaning as in section 5 of the AML/CTF Act;

 

(2)        ‘representative’ means:

 

(a)        in the case of a body corporate; an employee, agent or officer of the body corporate with duties of such responsibility that his or her conduct may fairly be assumed to represent the body corporate's policy;

 

(b)        in the case of an individual, trust or partnership; an employee or agent of the individual, trust or partnership with duties of such responsibility that his or her conduct may fairly be assumed to represent the policy of the individual, trust or partnership.

 

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 99


CHAPTER 45     Debt Collection

 

45.1     These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 247(4) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

45.2     For subsection 247(4), each class of provision of the AML/CTF Act contained in the following table is specified as not applying to a designated service provided in the circumstances as set out in paragraph 45.3 below:

        

Class of Provision

Application

Part 2, Division 2

Whole division

Part 2, Division 3

Whole division

Part 2, Division 4

Whole division

Part 2, Division 5

Whole division

Part 2, Division 6

Whole division

Part 2, Division 7

Sections 37, 38

Part 3, Division 3

Section 43 only

Part 3, Division 4

Section 45 only

Part 3, Division 5

Whole division

Part 3, Division 6

Section 50 only

Part 5

Whole Part

Part 6

Whole Part

Part 7

Whole Part

Part 10

Sections 104, 105, 106, 109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119 only

 

45.3     The exemption in paragraph 45.2 only applies when a person, in the capacity of a debt collector, provides any of the following designated services as described in table 1 of subsection 6(2) of the AML/CTF Act:

(a)        item 6;

(b)        item 7;

(c)        item 8;

(d)       item 31;

(e)        item 32;

(f)        item 51;

(g)        item 53.

45.4     In this Chapter:

 

(1)        ‘debt’ means an amount of money owed, including an alleged debt, where:

(a)        the customer is in default under the terms and conditions of the account; or

(b)        the customer is in default under the terms and conditions of the account and the provider of money (account provider) has declined the provision of further credit to the customer under the account; or

(c)        the account provider has terminated, cancelled, written off or charged off debt, by reason of the customer's default or continuing default in repaying the money;

(2)        ‘alleged debt’ means a debt where the debt collector has reasonable grounds for believing that the debt remains due, payable and owing by the debtor;

 

(3)        ‘debt collector’ means a person who collects debt in the course of carrying on a business of collecting debt.

 

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.


CHAPTER 46     Special circumstances for the applicable customer identification procedure

 

 

46.1.      These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), for paragraphs 33(a) and 33(b) and subparagraph 34(1)(d)(i) of that Act.

 

46.2.    Under paragraph 33(a) and paragraph 33(b) of the AML/CTF Act, the services specified and relevant conditions are, in the capacity of an agent of a person, acquiring or disposing of a security or a derivative or a foreign exchange contract by a reporting entity on behalf of another person (customer) under item 33 of table 1 in subsection 6(2) of the AML/CTF Act where the transaction occurs on a prescribed financial market under the following conditions:

 

(1)        the reporting entity does not accept physical currency to fund the designated service; and

(2)        the reporting entity does not permit the customer to transfer, or otherwise part with, proceeds from a disposal of a security or derivative or a foreign exchange contract; and

(3)        the reporting entity does not re-sell, transfer, or otherwise part with (including to another reporting entity for the purpose of providing the item 33 designated service to that customer), a security or derivative or a foreign exchange contract on behalf of the customer which has been acquired on behalf of the customer; and

(4)        the reporting entity does not allow the customer to be re-credited with or obtain a refund of the purchase price; and

(5)        the designated service does not involve the acquisition of an interest in a managed investment scheme to which section 1019B of the Corporations Act 2001 applies; and

(6)        the reporting entity cannot reasonably undertake the applicable customer identification procedure before the commencement of the provision of the designated service; and

(7)        the transaction must be performed rapidly due to financial market conditions relevant to the transaction; and

(8)        the reporting entity must put in place appropriate risk-based systems and controls to determine whether and in what circumstances to provide the designated service to a customer before the applicable customer identification procedure is carried out, including in relation to the number, types and/or amount of transactions.

 

46.3.    For the purposes of paragraph 46.2 of these Rules and subparagraph 34(1)(d)(i) of the AML/CTF Act, the period is the earlier of the following:

 

(1)        the day on which the reporting entity carries out the applicable customer identification procedure; or

(2)        the end of the period of 5 business days after the day on which the reporting entity commenced to provide the designated service to the customer.

 

46.4.    In this Chapter:

 

(1)        ‘derivative’ has the meaning given by section 5 of the AML/CTF Act;

(2)        ‘security’ has the meaning given by section 5 of the AML/CTF Act;

(3)        ‘prescribed financial market’ has the meaning given by section 9 of the Corporations Act 2001.

 

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.


CHAPTER 47     Risk-only life policy interests in a superannuation fund

 

 

47.1.    These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 247(3) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

 

47.2.    Subject to paragraph 47.3, the AML/CTF Act does not apply to a designated service that:

 

(1)        is of a kind described in item 42(a) of table 1 in subsection 6(2) of the        AML/CTF Act; or

(2)        is of a kind described in item 43(a) of table 1 in subsection 6(2) of the        AML/CTF Act.

 

47.3.    The exemption in paragraph 47.2 applies only if:

 

(1)        the provision of the designated service relates to an actual or potential interest in, or entitlement under, a Risk-only life policy of a member of a superannuation fund (“Risk-only life policy interest”) (regardless of whether the member has any other interests, benefits, entitlements, balances or accounts in the superannuation fund) where the Risk-only life policy:

 

(a)        has been acquired by the trustee of the superannuation fund from a life insurer on behalf of the member of the superannuation fund; and

 

(b)        is held by the trustee of the superannuation fund as the policy holder; and

(2)        the Risk-only life policy interest of the member referred to in subparagraph 47.3(1) does not include an investment component or an accumulated balance or account; and

(3)        in respect to a designated service which falls within subparagraph 47.2(2) of these Rules, on the occurrence of an event specified in the Risk-only life policy, the trustee of the superannuation fund cashes out the whole or part of the Risk-only life policy interest referred to in subparagraph 47.3(1) in relation to that occurrence to the member of the superannuation fund (regardless of whether or not the trustee of the superannuation fund exercises its discretion to cash out other interests, benefits, entitlements, balances or accounts the member may have in the superannuation fund).

 

 

47.4.    In this Chapter:

 

(1)        ‘member’ has the same meaning as the customer of the designated service in items 42 or 43 (as applicable) of table 1 in subsection 6(2) of the AML/CTF Act;

(2)        ‘Risk-only life policy’ is a life policy which falls outside the definition of ‘life policy’ in section 5 of the AML/CTF Act and, in particular, is a life policy in respect of which:

(a)        a single lump sum amount is, or instalment amounts are, payable to the trustee of the superannuation fund as policy holder, on the occurrence of an event specified in the policy relating to the death or disability of the member of the superannuation fund, and

(b)        there is no prescribed minimum surrender value (other than that which may be provided for in the policy documentation and promotional material) or no investment component.

For the purposes of this definition, the question of whether a policy has a prescribed minimum surrender value is to be determined in accordance with the prudential standards made under section 230A of the Life Insurance Act 1995 as in force from time to time.

 

 

 

 

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.

 


CHAPTER 48     Exemption of salary packaging administration services from the AML/CTF Act

 

 

48.1.    These Anti-Money Laundering and Counter-Terrorism Financing Rules      (Rules) are made under section 229 for subsection 247(3) of the Anti-            Money Laundering and Counter-Terrorism Financing Act 2006             (AML/CTF Act).

 

48.2.    Subject to paragraph 48.3, the AML/CTF Act does not apply to a designated         service that:

 

(1)        is of a kind described in items 6, 7, 31, 32 and 48 of table 1 in subsection 6(2) of the AML/CTF Act.

48.3.    The exemption in paragraph 48.2 only applies if the reporting entity:

 

(1)        is carrying on a business of providing administrative services relevant to salary packaging for an employer client, and

(2)        does not undertake transactions which involve the receipt or payment of physical currency in regard to the designated services described in           items 31 and 32 of table 1 in subsection 6(2) of the AML/CTF Act.

48.4.    In this Chapter:

 

‘salary packaging’ refers to an arrangement between an employer and an employee, whereby the employee agrees to forgo part of their future entitlement to salary or wages in return for the employer providing them with benefits of a similar cost.

 

 

 

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.


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

Note 1

The Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) (in force under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006) as shown in this compilation is amended as indicated in the Tables below.

Table of Instruments

Title

Date of
FRLI registration

Date of
commencement

Application, saving or
transitional provisions

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Instrument 2007 (No. 1)

13 Apr 2007 (see F2007L01000)

Ss. 1–3 and Schedule 1: 12 June 2007
Schedule 2: 12 Dec 2007

 

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2007 (No. 1)

28 June 2007 (see F2007L01959)

29 June 2007

as amended by

 

 

 

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2007 (No. 2)

24 July 2007 (see F2007L02318)

25 July 2007

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2007 (No. 3)

26 Oct 2007 (see F2007L04255)

27 Oct 2007

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2007 (No. 4)

18 Dec 2007 (see F2007L04878)

Schedule 1: 12 Dec 2007
Schedule 2: 12 Dec 2008

as amended by

 

 

 

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2008 (No. 7)

10 Dec 2008 (see F2008L04629)

11 Dec 2008

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2007 (No. 5)

20 Dec 2007 (see F2007L04925)

Ss. 1–3 and Schedule 1: 21 Dec 2007
Schedule 2: 12 Dec 2008 (see s. 2 (b) )
Schedule 3: (see s. 2 (c) and Note 2))

as amended by

 

 

 

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2008 (No. 1)

29 Apr 2008 (see F2008L01170)

30 Apr 2008

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2008 (No. 7)

10 Dec 2008 (see F2008L04629)

11 Dec 2008

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2009 (No. 3)

9 Jul 2009 (see F2009L02693)

10 Jul 2009

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2008 (No. 1)

29 Apr 2008 (see F2008L01170)

30 Apr 2008

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2008 (No. 2)

2 May 2008 (see F2008L01285)

3 May 2008

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2008 (No. 3)

15 May 2008 (see F2008L01373)

16 May 2008

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2008 (No. 4)

12 Aug 2008 (see F2008L03047)

13 Aug 2008

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2008 (No. 5)

12 Aug 2008 (see F2008L03048)

13 Aug 2008

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2008 (No. 6)

9 Oct 2008 (see F2008L03746)

10 Oct 2008

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2008 (No. 7)

10 Dec 2008 (see F2008L04629)

11 Dec 2008

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2008 (No. 8)

6 Jan 2009 (see F2009L00007)

7 Jan 2009

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

24 Mar 2009 (see F2009L01136)

25 Mar 2009

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2009 (No. 2)

30 Mar 2009 (see F2009L01198)

31 Mar 2009

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2009 (No. 3)

9 Jul 2009 (see F2009L02693)

10 Jul 2009

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2009 (No. 4)

24 Aug 2009 (see F2009L03234)

25 Aug 2009

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2009 (No. 5)

1 December 2009 (see F2009L04377)

2 December 2009

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2010 (No. 1)

15 April 2010

(see F2010L00964)

16 April 2010

 

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2010 (No. 2)

15 September 2010

(see F2010L02476)

16 September 2010

 

Table of Amendments

ad. = added or inserted      am. = amended      rep. = repealed      rs. = repealed and substituted

Provision affected

How affected

S. 2.........................................

rs. Amdt, 2008 (No. 1)

Note to s. 2............................

rep. Amdt, 2008 (No. 7)

S. 3.........................................

rep. Amdt, 2008 (No. 1)

Schedule 1

 

Heading to Schedule 1.......

rep. Amdt, 2007 (No. 5)

Schedule 2

 

Heading to Schedule 2.......

rep. Amdt, 2007 (No. 5)

Schedule 2............................

am. Amdt, 2007 (No. 5) (as am. by Amdt, 2008 (No. 1))

Schedule 3

 

Heading to Schedule 3.......

rep. Amdt, 2007 (No. 5)

Schedule 3............................

am. Amdt, 2007 (No. 5) (as am. by Amdt, 2008 (No. 1))

Chapter 1

 

Chapter 1..............................

am. Amdt, 2009 (No. 3) and (No. 4)

Chapter 2

 

Chapter 2..............................

rs. Amdt, 2009 (No. 3)

 

am. Amdt, 2010 (No.1)

Chapter 3

 

Chapter 3..............................

am. Amdt, 2008 (No. 7)

Chapter 7

 

Chapter 7..............................

am. Amdt, 2007 (No. 4)

Chapter 11

 

Chapter 11............................

ad. Amdt, 2007 (No. 1)

 

am. Amdt, 2008 (No. 8)

 

am. Amdt, 2009 (No. 5)

Chapter 12

 

Chapter 12............................

ad. Amdt, 2007 (No. 1) (as am. by Amdt, 2007 (No. 2))

Chapter 13

 

Chapter 13............................

ad. Amdt, 2007 (No. 1) (as am. by Amdt, 2007 (No. 2))

Chapter 14

 

Chapter 14............................

ad. Amdt, 2007 (No. 3)

 

am. Amdt, 2008 (No. 6)

Chapter 15

 

Heading to Chapt. 15..........

am. Amdt, 2007 (No. 5)

Chapter 15............................

ad. Amdt, 2007 (No. 4) (as am. by Amdt, 2008 (No. 7))

Chapter 16

 

Heading to Chapt. 16..........

am. Amdt, 2007 (No. 5)

Chapter 16............................

ad. Amdt, 2007 (No. 4) (as am. by Amdt, 2008 (No. 7))

Chapter 17

 

Heading to Chapt. 17..........

am. Amdt, 2007 (No. 5)

Chapter 17............................

ad. Amdt, 2007 (No. 4) (as am. by Amdt, 2008 (No. 7))

Chapter 18

 

Heading to Chapt. 18..........

am. Amdt, 2007 (No. 5)

Chapter 18............................

ad. Amdt, 2007 (No. 4) (as am. by Amdt, 2008 (No. 7))

Chapter 19

 

Chapter 19............................

ad. Amdt, 2007 (No. 5) (as am. by Amdt, 2008 (No. 1), 2008 (No. 7) and 2009 (No. 3))

 

am. Amdt, 2009 (No.3)

Chapter 20

 

Chapter 20............................

ad. Amdt, 2008 (No. 1)

Chapter 21

 

Chapter 21............................

ad. Amdt, 2008 (No. 2)

Chapter 22

 

Chapter 22............................

ad. Amdt, 2008 (No. 3)

Chapter 23

 

Chapter 23............................

ad. Amdt, 2008 (No. 5)

Chapter 24

 

Chapter 24............................ .............................................

ad. Amdt, 2008 (No. 7)

Chapter 25

 

Chapter 25............................

ad. Amdt, 2008 (No. 7)

Chapter 26

 

Chapter 26............................

ad. Amdt, 2008 (No. 7)

Chapter 27

 

Chapter 27............................

ad. Amdt, 2008 (No. 7)

Chapter 28

 

Chapter 28............................

ad. Amdt, 2009 (No.1)

Chapter 29

 

Chapter 29............................

ad. Amdt, 2009 (No.2)

Chapter 30

 

Chapter 30............................

ad. Amdt, 2009 (No.2)

Chapter 31

 

Chapter 31............................

ad. Amdt, 2009 (No.2)

Chapter 32

 

Chapter 32............................

ad. Amdt, 2009 (No.2)

Chapter 33

 

Chapter 33............................

ad. Amdt, 2009 (No.2)

Chapter 34

 

Chapter 34............................

ad. Amdt, 2009 (No.2)

Chapter 35

 

Chapter 35............................

ad. Amdt, 2009 (No.3)

Chapter 36

 

Chapter 36............................

ad. Amdt, 2009 (No.4)

Chapter 37

 

Chapter 37............................

ad. Amdt, 2009 (No.4)

Chapter 38

 

Chapter 38............................

ad. Amdt, 2009 (No.4)

Chapter 39

 

Chapter 39............................

ad. Amdt, 2009 (No.4)

Chapter 40

 

Chapter 40............................

ad. Amdt, 2009 (No.5)


 

Chapter 41

 

Chapter 41............................

ad. Amdt, 2009 (No.5)

Chapter 42

 

Chapter 42............................

ad. Amdt, 2009 (No.5)

Chapter 43

 

Chapter 43............................

ad. Amdt, 2009 (No.5)

Chapter 44

 

Chapter 44............................

ad. Amdt, 2010 (No.1)

Chapter 45

 

Chapter 45............................

ad. Amdt, 2010 (No.1)

Chapter 46

 

Chapter 46............................

ad. Amdt, 2010 (No.2)

Chapter 47

 

Chapter 47............................

ad. Amdt, 2010 (No.2)

Chapter 48

 

Chapter 48............................

ad. Amdt, 2010 (No.2)

 

Note 2

Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment Instrument 2010 (No. 3).

The following amendments commence on 1 October 2011:

 

Schedule 3               Amendment of Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1).

 

            (a)        Repeal Chapter 19

 

            (b)        After Chapter 18

 

                        insert

 

Chapter 19         Reportable details for threshold transactions

 

19.1        This Chapter commences on 1 October 2011.

               Note: For obligations and liabilities under the Rules in Chapter 19 as in force on 30 September 2011, see section 8 of the Acts Interpretation Act 1901.

19.2        These Rules are made under section 229 of the Anti‑Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for paragraph 43(3)(b) of that Act.

19.3        Subject to paragraph 19.4, a report under subsection 43(2) of the AML/CTF Act must contain the following details about a threshold transaction:

(1)        if the customer of the designated service is an individual:

(a)        the customer’s full name;

(b)        any other name used by the customer, if known;

(c)        any business name(s) under which the customer operates, if known;

(d)       the customer’s date of birth;

(e)        the customer’s full address (not being a post box address);

(f)        the postal address of the customer if different from that in 19.3(1)(e), if known;

(g)        the customer’s telephone number, if known;

(h)        the ABN of the customer, if known;

(i)         if the person conducting the threshold transaction is not the customer, the details of the person specified in subparagraph 19.3(15)(a) and if applicable, 19.3(15)(b) and 19.3(15)(c), of these Rules;

(2)        if the customer who is conducting the transaction is a signatory to the account but not the account holder, only the following details are required:

(a)        full name;

(b)        any other name used by the signatory, if known;

(c)        date of birth;

(d)       full address (not being a post box address);

(e)        the postal address of the signatory if different from that in 19.3(2)(d);

(f)        telephone number, if known;

Note: Where 19.3(2) applies, the details of the customer who is the account holder must be supplied under subparagraphs 19.3(1) or 19.3(3).

(3)        if the customer of the designated service is not an individual:

(a)        the name of the customer and any business name(s) under which the customer operates;

(b)        a description of the legal form of the customer and any business structure it is a part of, for the purposes of its main business activities, if known (for example: partnership, trust or company);

(c)        the full address of the customer’s principal place of business (not being a post box address), if applicable;

(d)       the postal address of the customer if different from that in 19.3(3)(c), if known;

(e)        the ACN, ARBN and/or ABN of the customer, if known;

(f)        the customer’s telephone number, if known;

(g)        the details of the person conducting the threshold transaction specified in subparagraph 19.3(15)(a) and if applicable, 19.3(15)(b) and 19.3(15)(c), of these Rules;

(4)        the occupation, business or principal activity of the customer or the relevant industry or occupation code(s) that applies to the customer’s business or occupation, if known, such as (without limitation):

(a)        the Australian Bureau of Statistics in the Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006 (as amended); or

(b)        the relevant industry code that applies to the customer’s business as published by the Australian Bureau of Statistics in the Australian Standard Classification of Occupations (ASCO) (as amended from time to time);

(5)        the date of the threshold transaction;

(6)        a description of the designated service provided or commenced to be provided by the reporting entity to the customer which involves the threshold transaction;

(7)        where applicable, the total of each of the following amounts, and the sum of these amounts, provided to or received from the customer relating to the threshold transaction:

(a)        money, including the total of each component thereof, and the type and total of each currency where a component is physical currency;

(b)        international funds transfers;

(c)        subject to 19.3(7)(f), cheques;

(d)       subject to 19.3(7)(f), bank cheques;

(e)        subject to 19.3(7)(f), bank drafts;

(f)        if the amount of 19.3(7)(c), (d) or (e) cannot be ascertained individually, the sum of those amounts;

(g)        traveller’s cheques;

(h)        money or postal orders;

(i)         hire purchase or finance lease payments;

(j)         negotiable debt instruments;

(k)        benefit payments or payouts;

(l)         contributions or premiums;

(m)       derivatives or futures;

(n)        securities;

(o)        bullion;

(p)        stored value cards (including whether the card was issued or topped up);

(q)        gambling chips or tokens;

(r)        electronic gaming machine payouts;

(s)        winning tickets from wagering;

(t)        buying into a game (for a gambling service);

(u)        placing a bet; and

(v)        any other value;

(8)        all of the following details, as applicable to the threshold transaction:

(a)        where the threshold transaction involves physical currency:

(i)         the total amount in Australian dollars;

(ii)        if the amount involves foreign currency, a description and amount of the currency;

(iii)       the name(s) of the recipient(s);

(iv)       the full address(es) of the recipient(s) (not being a post box address), if known;

(v)        the date(s) of birth of the recipient(s), if known;

(vi)       a description of the purpose of the transfer(s);

(vii)      if the purpose of the transfer(s) is to:

(a)    enable a cheque to be provided to the customer using all or part of the physical currency transferred by the customer; or

(b)    enable the customer to receive physical currency in exchange for all or part of a cheque produced by the customer to the reporting entity;

                        the following details:

(c)    the name of the drawer;

(d)    the name of the drawee; and

(e)    the amount of the cheque;

(b)        where the threshold transaction involves e-currency:

      (i)         the denomination of the e-currency and the amount of                     the e-currency;

(ii)        the equivalent total amount of e-currency in Australian         dollars, if known;

(iii)       a description of the e‑currency including details of the backing asset or thing, if known;

(iv)       the name(s) of the recipient(s);

(v)        the full address(es) of the recipient(s) (not being a post box address), if known;

(vi)       the date(s) of birth of the recipient(s), if known;

(vii)      a description of the purpose of the transfer(s);

(viii)     if the purpose of the transfer(s) is to:

(a)      enable a cheque to be provided to the customer using all or part of the e-currency transferred by the customer; or

(b)      enable the customer to receive e-currency in exchange for all or part of a cheque produced by the customer to the reporting entity;

                        the following details:

(c)     the name of the drawer;

(d)     the name of the drawee; and

(e)     the amount of the cheque;

(c)        where the threshold transaction is of a kind specified in the regulations involving money:

(i)         the total amount in Australian dollars;

(ii)        if the amount involves foreign currency, a description and amount of the currency;

(iii)       a description of the type of specified transaction;

(iv)       the name(s) of the recipient(s);

(v)        the full address(es) of the recipient(s) (not being a post box address), if known;

(vi)       the date(s) of birth of the recipient(s), if known;

(vii)      a description of the purpose of the transfer(s);

(viii)     if the purpose of the transfer(s) is to:

(a)      enable a cheque to be provided to the customer using all or part of the money transferred by the customer; or

(b)      enable the customer to receive money in exchange for all or part of a cheque produced by the customer to the reporting entity;

                        the following details:

(c)     the name of the drawer;

(d)     the name of the drawee; and

(e)     the amount of the cheque;

(d)       where the threshold transaction is of a kind specified in the regulations involving the transfer of property:

(i)         a description of the type of specified transaction;

(ii)        the value of the transferred property in Australian dollars;

(iii)       if value of the transferred property involves foreign currency, a description and amount of the currency;

(iv)       the name(s) of the recipient(s);

(v)        the full address(es) of the recipient(s) (not being a post box address), if known;

(vi)       the date(s) of birth of the recipient(s), if known;

(vii)      a description of the purpose of the transfer(s);

(viii)     if the purpose of the transfer(s) is to:

(a)      enable a cheque to be provided to the customer using all or part of the property transferred by the customer; or

(b)      enable the customer to receive property in exchange for all or part of a cheque produced by the customer to the reporting entity;

the following details:

(c)     the name of the drawer;

(d)     the name of the drawee; and

(e)     the amount of the cheque;

(9)     a description of any account opened by the reporting entity that involves the threshold transaction including the account’s identifying number;

(10)   the name and if applicable, identifying number of the reporting entity;

(11)   the name and if applicable, identifying number of the reporting entity at which the threshold transaction was conducted;

(12)   the address of the reporting entity at which the threshold transaction was conducted;

 

(13)   any identifying or transaction number assigned to the threshold transaction;

 

(14)   a description of the reliable and independent documentation and/or electronic data source(s) relied upon to verify the identity of the customer, if applicable;

 

            Individual conducting the threshold transaction is not the customer

 

            (15)   subject to 19.3(17), all of the following details, where applicable, of            the threshold transaction conducted by an individual who is not the             customer:        

 

                        (a)        if the person conducting the threshold transaction is an                                            individual:

 

                                    (i)         the individual’s full name;

 

                                    (ii)        any other name used by the person, if known;

 

                                    (iii)       the individual’s date of birth, if known;

 

                                    (iv)       the individual’s full address (not being a post box                                                     address), if known;

 

                                    (v)        the postal address of the individual if different from that                                         in 19.3(15)(a)(iv), if known;

 

                                    (vi)       the individual’s telephone number, if known;

 

                                    (vii)      a description of evidence of agency authorisation of the                                           individual, if any and known;

 

            (viii)     unless 19.3(15)(b)(ii) or 19.3(15)(c)(iv) applies, the   person’s occupation or principal activity, if known;

 

            (b)        if the individual is an employee acting on behalf of the                                 customer, the following details in addition to those specified in                 subparagraph 19.3(15)(a):

 

                                    (i)         a statement of whether the person is conducting the                                                             transaction as an employee of the customer;

 

                                    (ii)        the individual’s title, role or position held with the                                                    customer, if known;

 

            (c)        if the individual is acting on behalf of a non-individual entity                      that is not the customer, the following details in addition to                                    those specified in subparagraph 19.3(15)(a):

 

                                    (i)         the full name of the entity or business name under                                                    which the entity operates, if known;

 

                                    (ii)        the full address of the non-individual entity (not being a                                          post box address), if known;

 

                                    (iii)       a description of evidence of agency authorisation of the                               non-individual entity to act on behalf of the customer, if                                     any and known;

 

                                    (iv)       the individual’s title, role or position held with the non-                                           individual entity, if known;

 

                                    (v)        the ACN, ARBN and/or ABN of the non-individual                                                            entity, if known;

 

                                    (vi)       a statement of whether the person who is conducting the                                         transaction is acting on behalf of the non-individual                                                             entity;

                                   

            (16)      a description of the reliable and independent documentation and/or                        reliable and independent electronic data relied upon to verify the                                    identity of the individual referred to in subparagraph 19.3(15), if                                applicable;

 

            Information required in certain circumstances

 

            (17)      (a)        where a threshold transaction occurs in the circumstances                             specified in subparagraph 19.3(15) but

 

            (i)         the transaction involves a deposit service carried out in         non-face to face circumstances by the individual: or

 

                        (ii)        the transaction relates to the provision of the designated                              service described in item 51 or item 53 of table 1 in                                      subsection 6(2) of the AML/CTF Act by the individual;                                     then:

 

(b)        the provision of the following details, in addition to the details in 19.3(1)-(14), only:

 

                                    (i)         a statement that the circumstances in 19.3(17)(a)(i) or                                               (ii) apply.

 

Note:   Where a reporting entity is unable to ascertain whether the circumstances in 19.3(17)(a)(i) or (ii) apply, the reporting entity can assume that the transaction was carried out by the customer.

19.4     If the threshold transaction arises under a designated service that is of a kind described in item 3 of table 1 in subsection 6(2) of the AML/CTF Act, the reference to ‘customer’ in subparagraphs 19.3(2) to 19.3(14) inclusive will be taken, in the first instance, to refer only to the holder of the account and the signatory (if any) conducting the transaction in relation to the account, provided that:

(1)        if there are other signatories to the account, the AUSTRAC CEO may require the reporting entity to give to the AUSTRAC CEO, in the form of a supplement to the subsection 43(2) report, the same information that was submitted for the signatory conducting the transaction set out in subparagraphs 19.3(2)(a) to (f) in respect of the other signatories; and

(2)        nothing in paragraph 19.4 prevents a person (including the AUSTRAC CEO) from exercising his or her power under the AML/CTF Act (including under section 49) to obtain further information or documents, including information or documents about the other signatories (if any) to the account.

19.5     A report under subsection 43(2) of the AML/CTF Act must contain the following details about the person completing the report:

(1)        Full name;

(2)        Job title or position;

(3)        Telephone number; and

(4)        Email address.

19.6     In this Chapter:

(1)        ‘Non-face to face circumstances’ includes the use of an automated teller machine or night or express deposit facility.

 

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.

 

As at 27 January 2011, the amendments are not incorporated in this compilation.