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.