Federal Register of Legislation - Australian Government

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Rules/Other as made
These Rules amend the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) which sets out the requirements that reporting entities must follow in regard to ‘ongoing customer due diligence’ in relation to section 36.
Administered by: Attorney-General's
Made 15 Aug 2011
Registered 22 Aug 2011
Tabled HR 24 Aug 2011
Tabled Senate 24 Aug 2011
Date of repeal 09 Apr 2013
Repealed by

Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2011 (No. 5)

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

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

 

Dated 15 August 2011

 

 

 

 

 

 

 

 

[Signed]

John Lance Schmidt

Chief Executive Officer
Australian Transaction Reports and Analysis Centre


 

1              Name of Instrument

This Instrument is the Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2011 (No. 5).

2              Commencement

 

This Instrument commences on the day after it is registered.

              

3             Amendment

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

  

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

 

 

1.        Chapter 15

 

Item 1.            Following Chapter 15 heading omit

 

(Rules commencing on 12 December 2008)

 

Item 2.                        For paragraph 15.1 substitute

 

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 paragraphs 36(1)(b), 84(2)(c) and 85(2)(c) 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.

 

Item 3.                        Subparagraph 15.9(2) – at the end of the subparagraph, omit

 

.

 

add

 

; or

 

 

 

Item 4.                        Following subparagraph 15.9(2) insert

 

(3)        the reporting entity is entering into or proposing to enter into a transaction and a party to the transaction is physically present in, or is a corporation incorporated in, a prescribed foreign country.

 

Item 5.                        For subparagraph 15.10 substitute

 

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 must undertake, in regard to the identified ML/TF risk or suspicion, one or more of the following as specified in subparagraphs 15.10(1) - (6):

 

(1)        seek information from the customer or from third party sources in order to undertake one or more of the following as specified in subparagraphs 15.10(1)(a) – (d):

 

(a)        clarify or update KYC information already collected from the customer;

 

(b)        obtain any further KYC information, including, where appropriate, taking reasonable measures to identify:

 

(i)         the source of the customer’s wealth;

 

(ii)        the source of the customer’s funds; and

 

(iii)       the ultimate beneficial ownership of the customer (if a non-individual);

 

(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)        undertake more detailed analysis of the customer’s KYC information, including, where appropriate, taking reasonable measures to identify:

 

(a)        the source of the customer’s wealth;

 

(b)        the source of the customer’s funds; and

 

(c)        the ultimate beneficial ownership of the customer (if a non-individual);

 

(3)        verify or re-verify KYC information in accordance with the customer identification program;

 

(4)        undertake more detailed analysis and monitoring of the customer’s transactions – both past and future, including, but not limited to:

 

(a)        the purpose or nature of specific transactions; or

 

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

 

(5)        seek senior management approval for:

 

(a)        establishing, or continuing with a business relationship with a customer;

 

(b)        whether a transaction on an account should be processed; or

 

(c)        whether the designated service should commence to be provided or continue to be provided to the customer;

 

(6)        any other action that meets the same standard as those specified in subparagraphs 15.10(1) – (5), relating to the identified ML/TF risk or suspicion;

 

as well as lodge a suspicious matter report, if required, in accordance with section 41 of the AML/CTF Act.

 

Item 6.                        For the heading to subparagraph 15.11 omit

 

Terms

 

Item 7.                        For subparagraph 15.11 substitute

 

15.11   In this Chapter:

 

(1)        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);

 

(2)        ‘ultimate beneficial ownership’ in respect of a company, means any individual who ultimately owns or controls (either directly or indirectly), through one or more shareholdings, more than 25% of the issued capital of the company.