Compilation No. 1 - ?· Compilation No. 1 . Compilation date: ... Division 2—Definition of ‘d Designated…

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  • Anti-Money Laundering and Counter-Terrorism Financing Rules 2017 made under section 229 of the

    Anti-Money Laundering and Counter-Terrorism Financing Act 2006

    Compilation No. 1

    Compilation date: July 2017

    Includes amendments up to:

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

  • i

    Contents Part 1 Introduction 1 Division 1 Name 1 Division 2 Introduction Authority 1 Division 3 Applicability of Australian Privacy Principles 1 Division 4Nomenclature 1

    Part 2Definitions 4 Division 1Key terms and concepts 4 Division 2Definition of d Designated business group 18 Division 3Anti-Money Laundering and Counter-Terrorism

    Financing Rules in Respect of Paragraph (e) of the Definition of c Correspondent banking relationship in Section 5 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 28

    Division 4 Approved third-party bill payment system 29 Division 5Definition of e Exempt legal practitioner service 30 Division 6Anti-Money Laundering and Counter-Terrorism

    Financing Rules persons specified as non-financiers Accounting and law practices 31

    Part 3Designated services specified persons 33 Division 1Non-ADI credit card issuers and acquirers reform

    specified specifying persons under Items 1, 2 and 3 of Table 1 in subsection 6(2) of the AML/CTF Act 33

    Part 4Customer identification 35 Division 1Chapter 4 Customer identification - general 35

  • ii

    Division 2 Applicable customer identification procedure with respect to i Individuals 37

    Division 3 Applicable customer identification procedure with respect to c Companies 40

    Division 4 Applicable customer identification procedure with respect to t Trustees 45

    Division 5 Applicable customer identification procedure with respect to p Partners 49

    Division 6 Applicable customer identification procedure with respect to a Associations 51

    Division 7 Applicable customer identification procedure with respect to r Registered co-operatives 54

    Division 8 Applicable customer identification procedure with respect to g Government bodies 56

    Division 9 Verification from documentation 57 Division 10Verification from reliable and independent

    electronic data 58 Division 11Agents of customers 59 Division 12Collection and Verification of Beneficial Owner

    information 61 Division 13Collection and Verification of Politically Exposed

    Person information 65 Division 14Exemptions from identifying relating to the

    identification of beneficial owners and politically exposed persons 66

    Division 15Chapter 6 Identity verification 69 Subdivision 1 Verification of the identify of customers ........................ 69 Subdivision 2 Verification of the identity of customers under

    section 35 ......................................................................................... 69

  • iii

    Subdivision 3 Verification of the identity of pre-commencement customers ......................................................................................... 70

    Subdivision 4 Verification of the identity of low risk service customers ......................................................................................... 70

    Division 16Chapter 7 Reliance on customer identification 71 Subdivision 1 Applicable customer identification procedures

    deemed to have been carried out by a reporting entity .................... 71 Subdivision 2 Licensed financial advisers .............................................. 71 Subdivision 3 Designated business groups ............................................. 72

    Division 17Chapter 30 Disclosure certificates 73 Division 18 Customer identification after the

    commencement of a designated service Special circumstances for the applicable customer identification procedure 76

    Part 5Customer due diligence 1 Division 1Ongoing customer due diligence 1 Division 2Correspondent banking due diligence 5

    Part 6AML/CTF Programs 7 Division 1Chapter 5 Special AML/CTF Programs 7

    Subdivision 1 Special anti-money laundering and counter-terrorism financial (AML/CTF) programs ......................................... 7

    Subdivision 2 Applicable customer identification procedures in relation to special AML/CTF programs ............................................. 7

    Division 2Chapter 8 Standard AML/CTF programs Part A 8 Subdivision 1 Part A of a standard anti-money laundering and

    counter-terrorism financing (AML/CTF) program ............................ 8 Subdivision 2 AML/CTF risk awareness training program .................... 10 Subdivision 3 Employee due diligence program .................................... 10 Subdivision 4 Oversight by boards and senior management................... 11 Subdivision 5 AML/CTF Compliance Officer ....................................... 11 Subdivision 6 Independent review .......................................................... 11 Subdivision 7 AUSTRAC feedback ....................................................... 11 Subdivision 8 Permanent establishments in a foreign country ................ 12 Subdivision 9 Reporting obligations ....................................................... 12

  • iv

    Division 3 Chapter 9 Joint AML/CTF programs Part A 13 Subdivision 1 Part A of a joint anti-money laundering and

    counter-terrorism financing (AML/CTF) program .......................... 13 Subdivision 2 AML/CTF risk awareness training program .................... 15 Subdivision 3 Employee due diligence program .................................... 16 Subdivision 4 Oversight by boards and senior management................... 16 Subdivision 5 AML/CTF Compliance Officer ....................................... 16 Subdivision 6 Independent review .......................................................... 16 Subdivision 7 AUSTRAC feedback ....................................................... 17 Subdivision 8 Permanent establishments in a foreign country ................ 17 Subdivision 9 Reporting obligations ....................................................... 17

    Part 7Reporting obligations 19 Division 1Compliance reports Reporting and Lodgment

    periods 19 Division 2Reportable details for international funds transfer

    instructions (items 1 and 2 in section 46) International Funds Transfer Instructions - Electronic 20

    Division 3Reportable details for international funds transfer instructions under a designated remittance arrangement (items 3 and 4 in section 46)International Funds Transfer Instructions Designated Remittance Arrangement 25

    Division 4Reportable details for Suspicious matter reports 35 Division 5Reportable details forThreshold transaction

    reports 44 Division 6 Anti-Money Laundering and Counter-

    Terrorism Financing Rules for Movements of Physical currency into or out of Australia 54

    Division 7 Anti-Money Laundering and Counter-Terrorism Financing Rules for Receipts of physical currency from outside Australia 58

  • v

    Division 8 Anti-Money Laundering and Counter-Terrorism Financing Rules for movements of Bearer negotiable instruments into or out of Australia 61

    Division 9 Notices about cross-border movement reporting obligations 65

    Division 10AML/CTF Rules relating to certain definitions under the AML/CTF Act Ordering and Beneficial Institutions, Financial Institutions and Non-Financiers Submission of International Funds Transfer Instruction reports specified entities 67

    Subdivision 1 Introduction ..................................................................... 67 Subdivision 2 KEB Australia Limited and Travelex GBP

    Australia Pty Limited ...................................................................... 67 Subdivision 3 PayPal Pte Ltd. and PayPal Inc. ....................................... 68

    Division 11Account-based money transfer systems 70

    Part 8Remittance Sector Register 84 Division 1Anti-Money Laundering and Counter-Terrorism

    Financing Rules for Registrable details for relating to the Register of Providers of Designated Remittance Services and the Remittance Sector Register 84

    Division 2Removing a Persons Name and registrable details from the Register of Providers of Designated Remittance Services 97

    Division 3Information for remittance registration applications Information to be included in an application for registration as a remittance network provider, a remittance affiliate of the registered remittance network provider or an independent remittance dealer 101

    Division 4Assessment of remittance registration applications Matters to be considered by the AUSTRAC CEO in considering applications for registration 125

  • vi

    Division 5 Correction of the Remittance Sector Register 127 Division 6Change in remittance registration details

    regarding the person 128 Division 7Suspension Matters to be considered by the

    AUSTRAC CEO when deciding to suspend a of remittance registrations 137

    Division 8Cancellation of Matters to be considered by the AUSTRAC CEO when deciding to cancel a remittance registrations 143

    Division 9Renewal of Registration 148 Division 10 Registered network providers reporting on

    behalf of Reporting obligations of remittance affiliates on the Register of Providers of Designated Remittance Services 158

    Division 11Registered network providers reporting for obligations of registered remittance affiliates on the Remittance Sector Register 160

    Part 9Reporting Entities Roll 161 Division 1Assessment of enrolment applications Information

    to be provided or in relation to an application for enrolment as a reporting entity 161