Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (Cth)
Contents
[
The Parliament of Australia enacts:
This Act is the
Anti‑Money Laundering and Counter‑Terrorism Financing Amendment Act 2024 .
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | 10 December 2024 |
Schedules 1, 2 and 3 | 31 March 2026. | 31 March 2026 |
Schedule 4 | 1 July 2026. | 1 July 2026 |
Schedule 5, item 1 | 31 March 2026. | 31 March 2026 |
Schedule 5, item 2 | 31 March 2025. | 31 March 2025 |
Schedule 5, Part 1, Division 2 | 31 March 2026. | 31 March 2026 |
Schedule 5, Part 2 | The later of:
However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. | |
Schedule 6, Part 1 | 31 March 2026. | 31 March 2026 |
Schedule 6, Part 2 | The later of:
However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. | 31 March 2026 (paragraph (a) applies) |
Schedule 7 | 1 July 2026. | 1 July 2026 |
Schedule 8 | 31 March 2026. | 31 March 2026 |
Schedule 9, Parts 1 to 3 | The 28th day after this Act receives the Royal Assent. | 7 January 2025 |
Schedule 9, Part 4 | The later of:
However, the provisions do not commence at all if the provisions covered by table item 3B commence before the event mentioned in paragraph (b) occurs. | |
Schedule 10 | 31 March 2026. | 31 March 2026 |
Schedules 11 and 12 | The 28th day after this Act receives the Royal Assent. | 7 January 2025 |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Omit:
• A reporting entity is a financial institution, or other person, who provides designated services. (Designated services are listed in section 6.)
substitute:
• A reporting entity is a person who provides designated services. (Designated services are listed in section 6.). Lead entities of certain business groups (known as reporting groups) are also reporting entities.
• A reporting entity must have and comply with an AML/CTF program.
Omit:
• Reporting entities must have and comply with anti‑money laundering and counter‑terrorism financing programs.
Insert:
AML/CTF compliance officer for a reporting entity means the individual designated as the AML/CTF compliance officer for the reporting entity under subsection 26J(1).
AML/CTF policies of a reporting entity:
(a) means the policies, procedures, systems and controls of the reporting entity developed under section 26F; and
(b) if the policies, procedures, systems and controls of the reporting entity are updated—includes the policies, procedures, systems and controls as updated.
AML/CTF program : see section 26B.
4
Section 5 (definition of anti‑money laundering and counter‑terrorism financing program ) Repeal the definition.
Insert:
business group : see subsection 10A(3).
control has the meaning given by section 11.
Repeal the definition.
7
Section 5 (definition of designated business group ) Repeal the definition.
Insert:
governing body of a reporting entity means:
(a) if the reporting entity is an individual—the individual; or
(b) otherwise—the individual, or group of individuals, with primary responsibility for the governance and executive decisions of the reporting entity.
9
Section 5 (definition of joint anti‑money laundering and counter‑terrorism financing program ) Repeal the definition.
Insert:
lead entity of a reporting group: see subsection 10A(5).
member of a reporting group or a business group: see subsection 10A(4).
ML/TF risk assessment of a reporting entity:
(a) means the risk assessment undertaken by the reporting entity under section 26C; and
(b) if the assessment is updated under section 26D—includes the risk assessment as updated.
11
Section 5 (definition of money laundering and terrorism financing risk assessment ) Repeal the definition.
Insert:
proliferation financing means conduct that amounts to:
(a) an offence against the
Charter of the United Nations Act 1945 , or regulations made under that Act, that is prescribed by regulations made under this Act for the purposes of this paragraph; or(b) an offence against the
Autonomous Sanctions Act 2011 , or a contravention of regulations made under that Act, that involves sanctions addressing the proliferation of weapons of mass destruction; or(c) an offence against the
Autonomous Sanctions Act 2011 , or a contravention of regulations made under that Act, that is prescribed by regulations made under this Act for the purposes of this paragraph; or(d) the provision of assets (including funds) or financial services, or other dealing with assets, in contravention of a law of the Commonwealth that:
(i) implements an international agreement, convention or treaty relating to the proliferation of weapons of mass destruction; and
(ii) is prescribed by the regulations for the purposes of this paragraph; or
(e) an offence against a law of a State or Territory that corresponds to an offence referred to in paragraph (a), (b), (c) or (d); or
(f) an offence against a law of a foreign country or a part of a foreign country that corresponds to an offence referred to in paragraph (a), (b), (c), (d) or (e); or
(g) an offence against a law of the Commonwealth, a State or a Territory that is prescribed by the regulations for the purposes of this paragraph.
Repeal the definition, substitute:
reporting entity means:
(a) a person who provides a designated service; or
(b) the lead entity of a reporting group.
Insert:
reporting group : see subsection 10A(1).
senior manager of a reporting entity means an individual who makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of the reporting entity.
Omit “section 15”, substitute “section 94A”.
16
Section 5 (definition of special anti‑money laundering and counter‑terrorism financing program ) Repeal the definition.
17
Section 5 (definition of standard anti‑money laundering and counter‑terrorism financing program ) Repeal the definition.
Insert:
Designated services provided within business groups
(6A) Despite anything in this section, a service is not a
designated service if:
(a) any of the following apply:
(i) a member of a business group provides the service to another member of the business group;
(ii) the service is of a kind described in item 48 of table 1 and the guarantor and borrower are members of the same business group;
(iii) the service is of a kind described in item 49 of table 1 and the guarantor and borrower are members of the same business group;
(iv) the service is of a kind specified in the AML/CTF Rules; and
(b) the service is not of a kind specified in the AML/CTF Rules; and
(c) the requirements (if any) specified in the AML/CTF Rules are met.
Note 1: Item 48 of table 1 covers guaranteeing a loan, where the guarantee is given in the course of carrying on a business of guaranteeing loans.
Note 2: Item 49 of table 1 covers making a payment, in the capacity of guarantor of a loan, to the lender, where the guarantee was given in the course of carrying on a business of guaranteeing loans.
Repeal the section, substitute:
Reporting group
(1) A
reporting group is:
(a) a business group, where:
(i) at least one person in the group provides a designated service; and
(ii) each member of the group satisfies such conditions (if any) as are specified in the AML/CTF Rules; and
(iii) the group is not of a kind that, under the AML/CTF Rules, is ineligible to be a reporting group to which this paragraph applies; and
(iv) the conditions (if any) relating to changes in membership, dissolution, administration or operation of the group that are specified in the AML/CTF Rules are satisfied; or
(b) a group of 2 or more persons, where:
(i) each member of the group has elected, in writing, to be a member of the group, and the election is in force; and
(ii) each election was made in accordance with the AML/CTF Rules; and
(iii) no member of the group is a member of another group to which this paragraph applies; and
(iv) each member of the group satisfies such conditions (if any) as are specified in the AML/CTF Rules; and
(v) the group is not of a kind that, under the AML/CTF Rules, is ineligible to be a reporting group; and
(vi) the conditions (if any) relating to changes in membership, dissolution, administration or operation of the group that are specified in the AML/CTF Rules are satisfied.
(1A) Subject to subsection (2A), a person may be a member of a group to which paragraph (1)(b) applies even if the person is a member of a group to which paragraph (1)(a) applies.
(1B) The requirement in subparagraph (1)(b)(i) to make a written election does not apply in relation to a member of a group in the circumstances specified in the AML/CTF Rules.
(2) Subparagraph (1)(b)(iii) does not apply in the circumstances specified in the AML/CTF Rules.
(2A) If a person is a member of more than one reporting group, the AML/CTF Rules may specify circumstances in which that person is taken, for the purposes of this Act, to be a member of only one of those reporting groups.
Business groups
(3) A
business group is a group of 2 or more persons, where either of the following paragraphs applies:
(a) one person in the group controls each other person in the group;
(b) the group meets the requirements (if any) specified in the AML/CTF Rules.
Members of reporting groups and business groups
(4) Each person in a reporting group or a business group is a
member of that group.
Lead entity of a reporting group
(5) The
lead entity of a reporting group means the person in the group that is specified in the AML/CTF Rules as the lead entity for the reporting group.Note: The lead entity of a reporting group is a reporting entity, see the definition of
reporting entity in section 5.
(1)
Control , of a body corporate, is:
(a) having the capacity to cast, or control the casting of, more than one half of the maximum number of votes that might be cast at a general meeting of the body corporate; or
(b) directly or indirectly holding more than one half of the issued share capital of the body corporate (not including any part of the issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital, and not including mutual capital instruments within the meaning of section 167AD of the
Corporations Act 2001 ); or(c) having the capacity to control the composition of the body corporate’s board or governing body; or
(d) having the capacity to determine the outcome of decisions about the body corporate’s financial and operating policies, taking into account:
(i) the practical influence that can be exerted (rather than the rights that can be enforced); and
(ii) any practice or pattern of behaviour affecting the body corporate’s financial or operating policies (whether or not it involves a breach of an agreement or a breach of trust).
(2)
Control , of a person other than a body corporate, is:
(a) having the capacity to control the composition of the person’s board or governing body (if any); or
(b) having the capacity to determine the outcome of decisions about the person’s financial and operating policies, taking into account:
(i) the practical influence that can be exerted (rather than the rights that can be enforced); and
(ii) any practice or pattern of behaviour affecting the person’s financial or operating policies (whether or not it involves a breach of an agreement or a breach of trust).
Omit “passes the control test in relation to”, substitute “controls”.
Omit “passes the control test in relation to”, substitute “controls”.
Repeal the section.
Omit “regulations” (wherever occurring), substitute “AML/CTF Rules”.
Insert:
The following is a simplified outline of this Part:
• A reporting entity must have and comply with an AML/CTF program. An AML/CTF program comprises the reporting entity’s ML/TF risk assessment and AML/CTF policies.
• The ML/TF risk assessment is an assessment of the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services.
• The AML/CTF policies must appropriately manage and mitigate those risks and ensure the reporting entity complies with this Act and instruments under this Act.
• The AML/CTF program must be appropriate to the nature, size and complexity of the reporting entity’s business. For a lead entity of a reporting group, it must be appropriate to the nature, size and complexity of the business of each reporting entity in the reporting group.
• The governing body of the reporting entity has responsibilities relating to the AML/CTF program, including relating to overseeing and ensuring the reporting entity complies with the AML/CTF policies, this Act and instruments under this Act.
• The reporting entity must have an AML/CTF compliance officer. The AML/CTF compliance officer has various functions, including to oversee and coordinate the effective operation of, and compliance with, the AML/CTF policies.
An
AML/CTF program of a reporting entity comprises:
(a) the reporting entity’s ML/TF risk assessment; and
(b) the reporting entity’s AML/CTF policies.
26C Reporting entities must undertake an ML/TF risk assessment
(1) A reporting entity must undertake an assessment (an
ML/TF risk assessment ) that identifies and assesses the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services.(2) The steps taken by a reporting entity in relation to undertaking the reporting entity’s ML/TF risk assessment must be appropriate to the nature, size and complexity of the reporting entity’s business.
Note: See also section 26U (business of a lead entity of a reporting group).
Additional obligations that apply to reporting entities that provide designated services at or through permanent establishments in Australia
(3) If the reporting entity provides designated services at or through a permanent establishment of the reporting entity in Australia, the reporting entity must have regard to the following matters in undertaking an ML/TF risk assessment:
(a) the kinds of designated services provided, or proposed to be provided, by the reporting entity, including any new or emerging technologies relating to those services;
(b) the kinds of customers to whom the reporting entity’s designated services are or will be provided;
(c) the delivery channels by which the reporting entity’s designated services are or will be provided, including any new or emerging technologies relating to those delivery channels;
(d) the countries with which the reporting entity deals, or will deal, in providing its designated services;
(e) information communicated either directly or indirectly by AUSTRAC to the reporting entity that identifies or assesses the risks associated with the reporting entity’s provision of its designated services;
(f) the matters (if any) specified in the AML/CTF Rules.
(4) Subsection (3) does not limit subsection (1).
26D Reporting entities must review and update ML/TF risk assessment
Review of ML/TF risk assessment
(1) A reporting entity must review its ML/TF risk assessment for the purpose of identifying and assessing any new or changed risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services:
(a) if any of the following occur:
(i) there is a significant change to any of the matters mentioned in subsection 26C(3);
(ii) AUSTRAC communicates to the reporting entity information that identifies or assesses risks associated with the reporting entity’s provision of its designated services;
(iii) circumstances specified in the AML/CTF Rules; and
(b) in any event—at least once every 3 years.
(2) The review must be undertaken:
(a) for a significant change that is within the control of the reporting entity—before the significant change occurs; or
(b) for a significant change that is not within the control of the reporting entity—as soon as practicable after the significant change occurs; or
(c) for information communicated for the purposes of subparagraph (1)(a)(ii)—as soon as practicable after the information is communicated to the reporting entity; or
(d) for circumstances specified in the AML/CTF Rules—at the time, or within the period, specified in the AML/CTF Rules.
(3) The review must be appropriate to the nature, size and complexity of the reporting entity’s business.
Note: See also section 26U (business of a lead entity of a reporting group).
Updating ML/TF risk assessment
(4) A reporting entity must update its ML/TF risk assessment to address any issues identified by a review:
(a) for a significant change that is within the control of the reporting entity—before the significant change occurs; or
(b) in any other case—as soon as practicable after the review is completed.
26E Reporting entities must have up‑to‑date ML/TF risk assessment before providing designated services
(1) A reporting entity must not commence to provide a designated service to a customer if the reporting entity does not comply with section 26C or 26D in relation to the designated service.
(2) Subsection (1) is a civil penalty provision.
(3) A reporting entity that contravenes subsection (1) commits a separate contravention of that subsection in respect of each designated service that the reporting entity provides to a customer at or through a permanent establishment of the reporting entity in Australia.
(4) A reporting entity that contravenes subsection (1) commits a separate contravention of that subsection on each day that the reporting entity provides designated services at or through a permanent establishment of the reporting entity in a foreign country.
26F Reporting entities must develop and maintain AML/CTF policies
(1) A reporting entity must develop and maintain policies, procedures, systems and controls (
AML/CTF policies ) that:
(a) appropriately manage and mitigate the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services; and
(b) ensure the reporting entity complies with the obligations imposed by this Act, the regulations and the AML/CTF Rules on the reporting entity; and
(c) are appropriate to the nature, size and complexity of the reporting entity’s business; and
(d) comply with any requirements specified in the AML/CTF Rules.
Note: See also section 26U (business of a lead entity of a reporting group).
Additional obligations that apply to reporting entities that provide designated services at or through permanent establishments in Australia
(2) Subsections (3) and (4) apply if the reporting entity provides a designated service at or through a permanent establishment of the reporting entity in Australia.
(3) Without limiting paragraph (1)(a), the AML/CTF policies of a reporting entity must deal with the following:
(a) identifying significant changes to any of the matters mentioned in subsection 26C(3);
(b) carrying out customer due diligence in accordance with Part 2;
(c) reviewing and updating the AML/CTF policies in the following circumstances:
(i) in response to a review of the reporting entity’s ML/TF risk assessment under section 26D;
(ii) circumstances specified in the AML/CTF Rules;
(d) reviewing the AML/CTF policies of the reporting entity at the intervals or with the frequency specified in the AML/CTF Rules (and in any event at least once every 3 years);
(e) any other matters specified in the AML/CTF Rules.
(4) Without limiting paragraph (1)(b), the AML/CTF policies of a reporting entity must deal with the following:
(a) if the reporting entity is not an individual—ensuring its governing body is sufficiently informed of the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services;
(b) designating an AML/CTF compliance officer for the reporting entity;
(c) designating one or more senior managers of the reporting entity as responsible for approving:
(i) the AML/CTF policies of the reporting entity; and
(ii) the ML/TF risk assessment of the reporting entity;
(d) undertaking due diligence in relation to persons who are, or will be, employed or otherwise engaged by the reporting entity and who perform, or will perform, functions relevant to the reporting entity’s obligations under this Act;
(e) providing training to persons who are employed or otherwise engaged by the reporting entity and who perform, or will perform, functions relevant to the reporting entity’s obligations under this Act in relation to:
(i) the risk of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services; and
(ii) the obligations imposed by this Act, the regulations and the AML/CTF Rules on the reporting entity;
(f) the conduct of independent evaluations of the reporting entity’s AML/CTF program, including the frequency with which such evaluations must be conducted, which must:
(i) be appropriate to the nature, size and complexity of the reporting entity’s business; and
(ii) be at least once every 3 years;
(g) any other matters specified in the AML/CTF Rules.
Note: See also section 26U (business of a lead entity of a reporting group).
Additional obligations that apply to lead entities of reporting groups
(5) Without limiting paragraph (1)(a), if a reporting entity is the lead entity of a reporting group, the AML/CTF policies of the reporting entity must deal with the following:
(a) ensuring the appropriate sharing of information between members of the reporting group for the following purposes:
(i) carrying out customer due diligence under Part 2;
(ii) appropriately identifying, assessing, managing and mitigating the risks of money laundering, financing of terrorism and proliferation financing that each reporting entity that is a member of the reporting group may reasonably face in providing its designated services;
(b) any other matters specified in the AML/CTF Rules.
(6) Without limiting paragraph (1)(b), if a reporting entity is the lead entity of a reporting group, the AML/CTF policies of the reporting entity must deal with the following:
(a) ensuring the sharing of information between members of the reporting group that is necessary for the members of the reporting group who are reporting entities to comply with:
(i) their obligations imposed by this Act, the regulations and the AML/CTF Rules; and
(ii) the AML/CTF policies of the lead entity;
(b) if any member of the reporting group discharges an obligation imposed on another member of the reporting group by this Act, the regulations or the AML/CTF Rules:
(i) which members of the reporting group may discharge which obligations of which other member; and
(ii) ensuring that each member of the reporting group that is a reporting entity makes, or has access to, records to demonstrate any discharge by another member of the reporting group of any such obligations imposed on the reporting entity;
(c) ensuring the confidentiality and appropriate use of any information shared between members of the reporting group, including to prevent any contravention of subsection 123(1) by any member of the reporting group;
(d) any other matters specified in the AML/CTF Rules.
Note: For other rules about how this Part applies in relation to reporting groups, see sections 26U and 236B.
AML/CTF Rules
(7) The AML/CTF Rules may do either or both of the following:
(a) specify requirements that must be complied with in relation to a matter mentioned in subsection (3), (4), (5) or (6);
(b) set out circumstances in which the AML/CTF policies of a reporting entity are taken to comply with a matter mentioned in those subsections.
Reporting entities must develop and maintain AML/CTF policies before providing designated services
(8) A reporting entity must not commence to provide a designated service to a customer if the reporting entity does not comply with subsection (1).
Civil penalty
(8A) Subsection (8) is a civil penalty provision.
(9) A reporting entity that contravenes subsection (8) commits a separate contravention of that subsection in respect of each designated service that the reporting entity provides to a customer at or through a permanent establishment of the reporting entity in Australia.
(10) A reporting entity that contravenes subsection (8) commits a separate contravention of that subsection on each day that the reporting entity provides designated services at or through a permanent establishment of the reporting entity in a foreign country.
Exception
(11) Despite subsection (1), a reporting entity is not required to develop or maintain policies, procedures, systems and controls that specifically deal with the risk of proliferation financing if:
(a) the reporting entity reasonably assesses, under section 26C or 26D, the risk of proliferation financing that the reporting entity may reasonably face as low; and
(b) the reporting entity reasonably assesses that its risk of proliferation financing can be appropriately managed and mitigated by its policies, procedures, systems and controls that manage and mitigate the risks of money laundering or financing of terrorism.
(12) A person who wishes to rely on subsection (11) bears a legal burden in relation to that matter.
26G Reporting entities must comply with AML/CTF policies
(1) A reporting entity must comply with the AML/CTF policies of the reporting entity.
(2) If:
(a) a reporting entity is a member of a reporting group; and
(b) the reporting entity is not the lead entity of the reporting group;
the reporting entity must also comply with the AML/CTF policies of the lead entity of the reporting group that apply to the reporting entity.
Note: The lead entity of the reporting group must comply with its own AML/CTF policies under subsection (1).
(3) Subsections (1) and (2) are civil penalty provisions.
Division 4 — AML/CTF responsibilities of governing bodies
(1) The governing body of a reporting entity must:
(a) exercise appropriate ongoing oversight of:
(i) the reporting entity’s identification and assessment of risk for the purposes of its ML/TF risk assessment; and
(ii) the reporting entity’s compliance with its AML/CTF policies, the Act, the regulations and the AML/CTF Rules; and
(b) take reasonable steps to ensure that the reporting entity:
(i) is appropriately identifying, assessing, managing and mitigating the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services; and
(ii) is otherwise complying with its AML/CTF policies, the Act, the regulations and the AML/CTF Rules.
(2) A reporting entity contravenes this subsection if the governing body of the reporting entity contravenes subsection (1).
(3) Subsection (2) is a civil penalty provision.
26J Reporting entities must designate an individual as the AML/CTF compliance officer for the reporting entity
(1) The reporting entity must designate an individual as the compliance officer (the
AML/CTF compliance officer ) for the reporting entity.
AML/CTF compliance officers must have sufficient authority etc.
(2) A reporting entity must ensure that the individual designated as the AML/CTF compliance officer for the reporting entity:
(a) is a person employed or otherwise engaged by the reporting entity at management level; and
(b) has sufficient authority, independence and access to resources and information to ensure the individual can perform the functions of an AML/CTF compliance officer effectively.
AML/CTF compliance officers must meet certain requirements
(3) An individual is not eligible to be designated as the AML/CTF compliance officer for a reporting entity unless the individual:
(a) if the reporting entity provides its designated services at or through a permanent establishment of the reporting entity in Australia—is a resident of Australia; and
(b) is a fit and proper person; and
(c) meets the requirements (if any) specified in the AML/CTF Rules.
(4) The AML/CTF Rules may specify matters to which a reporting entity must have regard in determining whether an individual is a fit and proper person for the purposes of paragraph (3)(b).
Civil penalties
(5) Subsection (2) is a civil penalty provision.
(6) A reporting entity contravenes this subsection if:
(a) the reporting entity designates an individual as its AML/CTF compliance officer; and
(b) the individual is not eligible under subsection (3) to be designated as the AML/CTF compliance officer for the reporting entity.
(7) Subsection (6) is a civil penalty provision.
26K Reporting entities must have an AML/CTF compliance officer
(1) If:
(a) a reporting entity commences to provide a designated service; and
(b) an individual is not designated as the AML/CTF compliance officer for the reporting entity;
the reporting entity must, no later than 28 days after the day on which the reporting entity commences to provide the designated service, designate an individual as the AML/CTF compliance officer for the reporting entity.
(2) If:
(a) a reporting entity commences to provide a designated service; and
(b) the individual designated as the AML/CTF compliance officer for the reporting entity ceases to be eligible under subsection 26J(3) to be so designated;
the reporting entity must, no later than 28 days after the day on which the individual ceases to be eligible, designate another individual as the AML/CTF compliance officer for the reporting entity.
(3) If:
(a) a reporting entity is required under subsection (1) or (2) to designate an individual as the AML/CTF compliance officer for the reporting entity by a particular time; and
(b) the reporting entity does not do so by that time;
then the obligation to comply with the requirement continues until:
(c) the reporting entity designates an individual as the AML/CTF compliance officer for the reporting entity; or
(d) the reporting entity ceases to be a reporting entity;
whichever occurs first.
(4) A reporting entity that contravenes subsection (1) or (2) by failing to designate an individual as the AML/CTF compliance officer for the reporting entity by a particular time (the
deadline ) is taken to commit a separate contravention of that subsection on each day that occurs during the period:
(a) beginning on the day on which the deadline occurs; and
(b) ending on the day on which the reporting entity’s obligation to comply with the requirement ends (see subsection (3)).
(5) To avoid doubt, a reporting entity does not contravene subsection (1) or (2) more than once on any particular day, even if the reporting entity commences to provide a designated service more than once on a particular day or during a particular period.
(6) Subsections (1) and (2) are civil penalty provisions.
The functions of the AML/CTF compliance officer for a reporting entity are:
(a) to oversee and coordinate the reporting entity’s day‑to‑day compliance with this Act, the regulations and the AML/CTF Rules; and
(b) to oversee and coordinate the effective operation of and compliance with the reporting entity’s AML/CTF policies; and
(c) to communicate, on behalf of the reporting entity, with AUSTRAC; and
(d) to do anything incidental to or conducive to the performance of any of the above functions; and
(e) any other functions specified in the AML/CTF Rules.
26M Reporting entities must notify AUSTRAC of entity’s AML/CTF compliance officer
(1) A reporting entity must notify AUSTRAC of the individual who is designated as the reporting entity’s AML/CTF compliance officer within 14 days after the individual is designated as the AML/CTF compliance officer for the reporting entity.
(2) A notice under subsection (1):
(a) must be in the approved form; and
(b) must contain such information, and be accompanied by such documents, as is required by the approved form.
(3) Subsection (1) is a civil penalty provision.
Division 6 — AML/CTF program documentation and approvals
(1) A reporting entity must document the following, within the period (if any) specified in the AML/CTF Rules:
(a) its AML/CTF program;
(b) any other matter relating to the AML/CTF program of the reporting entity specified in the AML/CTF Rules.
(2) A reporting entity must comply with subsection (1).
(3) Subsection (2) is a civil penalty provision.
(4) If a reporting entity is the responsible entity of a registered scheme (within the meaning of the
Corporations Act 2001 ), the reporting entity’s AML/CTF program may be documented in the same document as the registered scheme’s compliance plan under that Act.
(1) A reporting entity’s ML/TF risk assessment and AML/CTF policies, including any updates to either, must be approved by a senior manager of the reporting entity.
(2) Any updates to a reporting entity’s ML/TF risk assessment must be notified, in writing, to the governing body of the reporting entity as soon as practicable after the update is made.
(3) A reporting entity must comply with a requirement under this section.
(4) Subsection (3) is a civil penalty provision.
(1) The AUSTRAC CEO may, by written notice, request a reporting entity to produce one or more of the documents required by subsection 26N(1) within the period specified in the notice.
(2) A reporting entity must comply with a notice given under subsection (1).
(3) Subsection (2) is a civil penalty provision.
26R AUSTRAC CEO may require reporting entity to undertake ML/TF risk assessment etc.
Scope
(1) This section applies if the AUSTRAC CEO is satisfied that:
(a) a reporting entity does not have an AML/CTF program; or
(b) the AML/CTF program of a reporting entity is not up to date; or
(c) the AML/CTF program of a reporting entity does not appropriately identify, assess, manage or mitigate the risk of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services.
Requirement
(2) The AUSTRAC CEO may, by written notice given to the reporting entity, require the reporting entity to:
(a) do one or more of the following:
(i) undertake and document an ML/TF risk assessment of the reporting entity;
(ii) review and update the ML/TF risk assessment of the reporting entity;
(iii) develop and document AML/CTF policies of the reporting entity;
(iv) review and update the AML/CTF policies of the reporting entity; and
(b) provide a copy of the documentation within:
(i) the period specified in the notice; or
(ii) if the AUSTRAC CEO allows a longer period—that longer period.
(3) A person commits an offence if:
(a) the person is subject to a requirement under subsection (2); and
(b) the person engages in conduct; and
(c) the person’s conduct breaches the requirement.
Penalty: Imprisonment for 6 months or 30 penalty units, or both.
Civil penalty
(4) A reporting entity must comply with a requirement under subsection (2).
(5) Subsection (4) is a civil penalty provision.
26S Registered remittance affiliates of a registered remittance network provider
(1) A reporting entity that is a registered remittance network provider must make available an AML/CTF program to its registered remittance affiliates.
(2) Subsection (1) is a civil penalty provision.
(3) To avoid doubt, subsection (1) does not prevent any of the registered remittance affiliates from:
(a) undertaking a risk assessment for the remittance affiliate; or
(b) developing AML/CTF policies for the remittance affiliate.
(4) If a senior manager of a remittance affiliate of a registered remittance network provider approves the registered remittance network provider’s:
(a) ML/TF risk assessment; and
(b) AML/CTF policies;
the remittance affiliate is taken to have complied with the remittance affiliate’s obligations under section 26C and 26F in respect of the remittance affiliate’s designated services to which the registered remittance network provider’s AML/CTF program applies.
26T Application of Part to holders of Australian financial services licences
(1) This section applies if all of the designated services provided by a reporting entity are covered by item 54 of table 1 in section 6.
Note: Item 54 of table 1 in section 6 covers a holder of an Australian financial services licence who arranges for a person to receive a designated service.
(2) Paragraph 26F(1)(a) applies in relation to the reporting entity as if it instead required policies, procedures, systems and controls that:
(a) relate to undertaking initial customer due diligence in accordance with section 28; and
(b) are appropriate to the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services.
(3) The following provisions of this Part do not apply to the reporting entity:
(a) paragraphs 26F(1)(b) and (3)(a) to (d) and subsection 26F(4);
(b) section 26H;
(c) subsection 26P(2);
(d) Division 5.
26U Business of a lead entity of a reporting group In applying this Part in relation to a reporting entity that is the lead entity of a reporting group, a reference to the nature, size and complexity of the reporting entity’s business is taken to be a reference to the nature, size and complexity of the business of the lead entity and each other reporting entity that is a member of the reporting group.
Note: For other rules about how this Part applies in relation to a lead entity of a reporting group, see section 236B.
(1) This Part does not apply to a designated service that is of a kind specified in the AML/CTF Rules.
(2) The AML/CTF Rules may provide that a specified provision of this Part does not apply to a designated service that is of a kind specified in the AML/CTF Rules.
(3) This Part does not apply to a designated service that is provided in circumstances specified in the AML/CTF Rules.
(4) The AML/CTF Rules may provide that a specified provision of this Part does not apply to a designated service that is provided in circumstances specified in the AML/CTF Rules.
Repeal the subsection.
Omit “money laundering or financing of terrorism”, substitute “money laundering, financing of terrorism or proliferation financing”.
Repeal the subsection.
Repeal the subsections.
Omit:
• Providers of designated services must be entered on the Reporting Entities Roll.
substitute:
• Reporting entities must be entered on the Reporting Entities Roll.
Repeal the Part.
Insert:
(1) A
shell bank is a corporation that:
(a) is incorporated in a foreign country; and
(b) is authorised to carry on banking business in its country of incorporation; and
(c) does not have a physical presence in its country of incorporation; and
(d) is not an affiliate of another corporation that:
(i) is incorporated in a particular country; and
(ii) is authorised to carry on banking business in its country of incorporation; and
(iii) has a physical presence in its country of incorporation.
When a corporation has a physical presence in a country
(2) For the purposes of determining what is a shell bank, a corporation has a
physical presence in a country if, and only if:
(a) the corporation carries on banking business at a place in that country; and
(b) at least one full‑time employee of the corporation performs banking‑related duties at that place.
When a corporation is affiliated with another corporation
(3) For the purposes of determining what is a shell bank, a corporation is
affiliated with another corporation if, and only if:
(a) the corporation is a subsidiary of the other corporation; or
(b) at least one individual controls both corporations; or
(c) under the regulations, both corporations are taken to be under common control.
Omit:
• A reporting entity must retain a copy of its anti‑money laundering and counter‑terrorism financing program.
substitute:
• A reporting entity must retain records relating to its AML/CTF program.
Repeal the subsection.
Repeal the subsection.
Repeal the Division, substitute:
Division 5 — AML/CTF program record‑keeping requirements
(1) A reporting entity must keep records that:
(a) are reasonably necessary to demonstrate compliance with the reporting entity’s obligations under Part 1A; and
(b) are in the English language, or in a form in which the records are readily accessible and readily convertible into writing in the English language.
(2) Subsection (1) is a civil penalty provision.
(3) A person who is or was a reporting entity must retain the records referred to in subsection (1) throughout the period:
(a) beginning at the time the record was made; and
(b) ending 7 years after the record is no longer relevant to the reporting entity’s compliance with its obligations under Part 1A.
(4) Subsection (3) is a civil penalty provision.
Repeal the paragraph, substitute:
(a) the person is or has been:
(i) a reporting entity; or
(ii) an officer, employee or agent of a reporting entity; or
(iii) a member of a reporting group; or
(iv) an officer, employee or agent of a member of a reporting group; or
(v) required by a notice under subsection 49(1) to give information or produce documents; or
(vi) required by notice under subsection 49B(2) to give information or produce documents; and
After “section”, insert “26R,”.
Omit “, 162 or 165”, substitute “or 162”.
Repeal the subsection, substitute:
(1) This section applies if the AUSTRAC CEO has reasonable grounds to suspect that a reporting entity has not taken, or is not taking, appropriate action to identify, assess, manage or mitigate the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services at or through a permanent establishment of the reporting entity in Australia.
Repeal the paragraph, substitute:
(b) arrange for the external auditor to carry out an external audit of the reporting entity’s capacity and endeavours to identify, assess, manage or mitigate the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services at or through a permanent establishment of the reporting entity in Australia; and
Repeal the subsection, substitute:
(4) The matters that may be specified under paragraph (3)(a) may include either or both of the following:
(a) an assessment of the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services at or through a permanent establishment of the reporting entity in Australia;
(b) an assessment of what the reporting entity will need to do, or continue to do, to appropriately identify, assess, manage or mitigate the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing its designated services at or through a permanent establishment of the reporting entity in Australia.
Omit “belongs to a designated business group”, substitute “is a member of a reporting group”.
Omit “designated business group”, substitute “reporting group”.
Omit “belongs to a designated business group”, substitute “is a member of a reporting group”.
Omit “designated business group”, substitute “reporting group”.
Repeal the Division.
46
Subsection 184(4) (before paragraph (b) of the definition of designated infringement notice provision ) Insert:
(aa) subsection 26K(1) or (2) (which deal with reporting entities’ obligation to designate an AML/CTF compliance officer);
(ab) subsection 26M(1) (which deals with notifications about AML/CTF compliance officers);
(ac) subsection 26N(2) (which deals with AML/CTF program documentation);
(ad) subsection 26P(3) (which deals with AML/CTF program approvals);
(ae) subsection 26Q(2) (which deals with requests for AML/CTF program documentation);
47
Subsection 184(4) (paragraph (g) of the definition of designated infringement notice provision ) Repeal the paragraph, substitute:
(g) subsection 116(1) or (3) (which deal with retaining records relating to AML/CTF programs);
Omit “designated business group”, substitute “reporting group”.
After:
• In proceedings for a contravention of this Act or the regulations, it is a defence if the defendant proves that the defendant took reasonable precautions, and exercised due diligence, to avoid the contravention.
insert:
• There is a defence to a contravention of certain civil penalty provisions relating to the law of a foreign country preventing compliance.
• Provision is made in relation to how this Act applies to reporting groups.
Insert:
236A Defence of law of foreign country preventing compliance
(1) A reporting entity does not contravene a civil penalty provision in Part 1A or 2 if:
(a) the reporting entity provides a designated service at or through a permanent establishment in a foreign country; and
(b) a law of the foreign country that applies in the place where the permanent establishment is located prevents the reporting entity from complying with that civil penalty provision; and
(c) before the conduct alleged to constitute the contravention occurs, the reporting entity has given written notice, in the approved form, to the AUSTRAC CEO of those facts; and
(d) at the time the conduct alleged to constitute the contravention occurs, the reporting entity is taking reasonable steps to ensure that the reporting entity is appropriately identifying, assessing, managing and mitigating any additional risk of money laundering, terrorism financing or proliferation financing associated with being prevented from complying with that civil penalty provision.
(2) A person who wishes to rely on subsection (1) bears a legal burden in relation to that matter.
Designated services of reporting group taken to be provided by lead entity for certain purposes
(1) Subsection (2) applies if a reporting entity (the
ordinary member ) that is a member of a reporting group but is not the lead entity of the reporting group proposes to provide, commences to provide, or provides, a designated service.(2) For the purposes of Parts 1A, 2, 3A and 10, and Division 9 of Part 15, the lead entity is also taken to have proposed to provide, commenced to provide, or provided, as the case requires, the designated service in the same circumstances as those in which the service is proposed to be provided, is commenced to have been provided, or is provided, by the ordinary member.
Note: In relation to the application of Part 1A to reporting groups, see also section 26U (business of a lead entity of a reporting group).
(3) For the purposes of subsection (2), the same circumstances include:
(a) that a permanent establishment of the ordinary member is taken to be a permanent establishment of the lead entity; and
(b) that the lead entity is taken to provide the designated service in the same capacity as the ordinary member; and
(c) that the lead entity is taken to have received any information communicated either directly or indirectly by AUSTRAC to the ordinary member that identifies or assesses the risks associated with the ordinary member’s provision of the designated service; and
(d) a circumstance specified by the AML/CTF Rules.
(4) Subsection (3) does not limit subsection (2).
Discharge of obligations by members of a reporting group
(5) If:
(a) a reporting entity is a member of a reporting group; and
(b) an obligation is imposed on the reporting entity by a provision of this Act, the regulations or the AML/CTF Rules; and
(c) such other conditions (if any) as are specified in the AML/CTF Rules are satisfied; and
(d) the obligation is not of a kind, or does not arise in circumstances, specified in the AML/CTF Rules;
the obligation may be discharged by any other member of the reporting group.
Note: The member who discharges the obligation need not be a reporting entity.
Contraventions of civil penalty provisions by members of reporting groups
(6) A civil penalty provision that would otherwise be contravened only by a reporting entity that is:
(a) a member of a reporting group; and
(b) not the lead entity of the reporting group;
is taken to have been contravened by both the reporting entity and the lead entity.
Omit:
• A reporting entity must carry out a procedure to verify a customer’s identity before providing a designated service to the customer. However, in special cases, the procedure may be carried out after the provision of the designated service.
substitute:
• A reporting entity must undertake initial customer due diligence before providing a designated service to the customer. However, in special cases, initial customer due diligence may be carried out after the provision of the designated service.
Omit:
• Certain pre‑commencement customers are subject to modified identification procedures.
substitute:
• Certain pre‑commencement customers are subject to modified customer due diligence.
Omit:
• Certain low‑risk services are subject to modified identification procedures.
substitute:
• Simplified customer due diligence may be undertaken in certain low risk circumstances as part of initial and ongoing customer due diligence.
4
Section 5 (definition of applicable customer identification procedure ) Repeal the definition.
Insert:
beneficial owner of a person (other than an individual) means an individual who:
(a) ultimately owns (either directly or indirectly) 25% or more of the person; or
(b) controls (directly or indirectly) the person.
business relationship means a relationship between a reporting entity and a customer involving the provision of a designated service or designated services that has, or could reasonably be expected to have, an element of duration.
child : without limiting who is a child of another person for the purposes of this Act, each of the following is thechild of a person:
(a) a stepchild or an adopted child of the person;
(b) someone who would be the stepchild of the person except that the person is not legally married to the person’s partner;
(c) someone who is a child of the person within the meaning of the
Family Law Act 1975 .
de facto partner has the same meaning as in theActs Interpretation Act 1901 .
domestic politically exposed person means:
(a) an individual who holds an office or position (whether or not in or for the Commonwealth) specified in the AML/CTF Rules; or
(b) an individual who is a member of the legislature of the Commonwealth or of a State or Territory; or
(c) a family member of an individual covered by paragraph (a) or (b); or
(d) an individual who is known (having regard to information that is public or readily available) to have:
(i) joint beneficial ownership of a body corporate or legal arrangement with an individual covered by paragraph (a) or (b); or
(ii) sole beneficial ownership of a body corporate or legal arrangement on behalf or for the benefit of an individual covered by paragraph (a) or (b); or
(iii) any other close business relations with an individual covered by paragraph (a) or (b).
family member of an individual who is covered by:
(a) paragraph (a) or (b) of the definition of
domestic politically exposed person in this section; or(b) paragraph (a) of the definition of
foreign politically exposed person in this section; or(c) paragraph (a) of the definition of
international organisation politically exposed person in this section;includes:
(d) a spouse, de facto partner, or other person who is equivalent to a spouse or de facto partner under any applicable law of a foreign country, of the individual; and
(e) a child of the individual; and
(f) a spouse or de facto partner, or other person who is equivalent to a spouse or de facto partner under any applicable law of a foreign country, of a child of the individual; and
(g) a parent of the individual.
foreign politically exposed person means:
(a) an individual who holds a prominent office or position or public function in or for the legislature, executive or judiciary of a foreign country, including an individual who holds any of the following offices or positions:
(i) head of state or head of government;
(ii) member of the executive council of government;
(iii) member of a legislature;
(iv) minister, deputy minister or equivalent office or position;
(v) judge of a supreme court, constitutional court or other court of general jurisdiction or last resort;
(vi) ambassador, high commissioner or charge d’affaires;
(vii) high ranking military officer;
(viii) head or board member of a government body;
(ix) head or board member of a state‑owned company or a state‑owned bank;
(x) member of a governing body of a political party represented in a legislature;
(xi) an office or position prescribed in the AML/CTF Rules; or
(b) a family member of an individual covered by paragraph (a); or
(c) an individual who is known (having regard to information that is public or readily available) to have:
(i) joint beneficial ownership of a body corporate or legal arrangement with an individual covered by paragraph (a); or
(ii) sole beneficial ownership of a body corporate or legal arrangement on behalf or for the benefit of an individual covered by paragraph (a); or
(iii) any other close business relations with an individual covered by paragraph (a).
Note:
Foreign country has an extended meaning—see the definition offoreign country in this section.
international organisation politically exposed person means:
(a) an individual who is entrusted with a prominent public function, position or office of a public international organisation, including a head, deputy head or board member in a public international organisation;
(b) a family member of an individual covered by (a);
(c) an individual who is known (having regard to information that is public or readily available) to have:
(i) joint beneficial ownership of a body corporate or legal arrangement with an individual covered by paragraph (a); or
(ii) sole beneficial ownership of a body corporate or legal arrangement on behalf or for the benefit of an individual covered by paragraph (a); or
(iii) any other close business relations with an individual covered by paragraph (a).
KYC information (short for know your customer information) about a customer of a reporting entity means information about the customer that:
(a) provides reasonable grounds for the reporting entity to establish the matters mentioned in subsection 28(2); or
(b) enables the reporting entity to identify or assess the ML/TF risk of the customer.
ML/TF risk , of a customer, means the risks of money laundering, financing of terrorism and proliferation financing that a reporting entity may reasonably face in providing its designated service, or designated services, to the customer.
nested services relationship means a relationship that involves the provision of a designated service by a reporting entity that is a remitter, virtual asset service provider or financial institution to a customer that is a remitter, virtual asset service provider or financial institution where:
(a) the reporting entity provides the designated service at or through a permanent establishment in one country; and
(b) the customer uses the designated service to provide services to its own customers at or through a permanent establishment in another country; and
(c) the relationship is not a correspondent banking relationship.
occasional transaction means the provision of a designated service by a reporting entity to a customer other than as part of a business relationship.
parent : without limiting who is a parent of another person for the purposes of this Act, a person is theparent of another person if the other person is the person’s child because of the definition ofchild in this section.
person designated for targeted financial sanctions means:
(a) a designated person or entity (within the meaning of regulations made under the
Charter of the United Nations Act 1945 ); or(b) a designated person or entity (within the meaning of regulations made under the
Autonomous Sanctions Act 2011 ).
politically exposed person means:
(a) a domestic politically exposed person; or
(b) a foreign politically exposed person; or
(c) an international organisation politically exposed person.
pre‑commencement customer : see subsection 36(1).
public international organisation has the same meaning as in section 70.1 of theCriminal Code.
spouse of a person includes a de facto partner of the person within the meaning of theActs Interpretation Act 1901 .
Repeal the heading, substitute:
Repeal the Divisions, substitute:
The following is a simplified outline of this Part:
• A reporting entity must undertake initial customer due diligence before providing a designated service to a customer. However, in special cases, initial customer due diligence may be carried out after the provision of the designated service.
• A reporting entity must undertake ongoing customer due diligence in relation to the provision by the reporting entity of designated services.
• Simplified customer due diligence may be undertaken in certain low risk circumstances as part of initial and ongoing customer due diligence.
• Enhanced customer due diligence must be undertaken in certain circumstances as part of initial and ongoing customer due diligence.
• Certain pre‑commencement customers are subject to modified customer due diligence.
• Exemptions from initial customer due diligence, and ongoing customer due diligence, apply in certain circumstances.
(1) A reporting entity must not commence to provide a designated service to a customer if the reporting entity has not established on reasonable grounds each of the matters in subsection (2) in relation to the customer.
Note 1: See also section 31 (simplified customer due diligence).
Note 2: See also section 32 (enhanced customer due diligence).
Note 3: See section 36 for rules that apply to pre‑commencement customers.
(2) The matters are as follows:
(a) the identity of the customer;
(b) the identity of any person on whose behalf the customer is receiving the designated service;
(c) the identity of any person acting on behalf of the customer and their authority to act;
(d) if the customer is not an individual—the identity of any beneficial owners of the customer;
(e) whether the customer, any beneficial owner of the customer, any person on whose behalf the customer is receiving the designated service, or any person acting on behalf of the customer is:
(i) a politically exposed person; or
(ii) a person designated for targeted financial sanctions;
(f) the nature and purpose of the business relationship or occasional transaction;
(g) any other matter relating to the customer that is specified in the AML/CTF Rules.
(3) Without limiting subsection (1), a reporting entity must do the following for the purposes of establishing on reasonable grounds the matters in subsection (2):
(a) if the customer is an individual—take reasonable steps to establish that the customer is the person the customer claims to be;
(b) identify the ML/TF risk of the customer, based on KYC information about the customer that is reasonably available to the reporting entity before commencing to provide the designated service;
(c) collect KYC information about the customer that is appropriate to the ML/TF risk of the customer;
(d) verify, using reliable and independent data, such of the KYC information referred to in paragraph (c) as is appropriate to the ML/TF risk of the customer.
(4) If a reporting entity provides its designated services at or through a permanent establishment of the reporting entity in Australia, a reporting entity must take into account the following matters when identifying the ML/TF risk of the customer for the purposes of paragraph (3)(b):
(a) the reporting entity’s ML/TF risk assessment;
(b) the kind of customer to whom the designated services will be provided;
(c) the kinds of designated services provided, or proposed to be provided, by the reporting entity to the customer;
(d) the delivery channels by which the reporting entity’s designated services are or will be provided to the customer;
(e) the countries with which the reporting entity deals, or will deal, in providing its designated services to the customer;
(f) the matters (if any) specified in the AML/CTF Rules.
(5) Subsection (4) does not limit the matters a reporting entity may take into account for the purposes of paragraph (3)(b).
(6) The AML/CTF Rules may do either or both of the following:
(a) specify requirements that must be complied with for the purposes of establishing on reasonable grounds the matters in subsection (2);
(b) set out circumstances in which a reporting entity is taken to comply with a matter mentioned in that subsection.
(7) Without limiting paragraph (2)(g) or (4)(f) or subsection (6), AML/CTF Rules made for the purposes of any of those provisions may make different provision in relation to different classes of customers, including:
(a) customers in relation to whom simplified due diligence measures may be taken in accordance with section 31; and
(b) customers in relation to whom enhanced customer due diligence measures must be undertaken in accordance with section 32.
Note: This subsection also does not limit subsection 13(3) of the
Legislation Act 2003 or subsection 33(3AB) of theActs Interpretation Act 1901 : see section 249.(8) Subsection (1) is a civil penalty provision.
(9) A reporting entity that contravenes subsection (1) in relation to a customer commits a separate contravention of that subsection in respect of each designated service that the reporting entity provides to the customer at or through a permanent establishment of the reporting entity in Australia.
(10) A reporting entity that contravenes subsection (1) in relation to a customer commits a separate contravention of that subsection on each day that the reporting entity provides designated services to the customer at or through a permanent establishment of the reporting entity in a foreign country.
Despite subsection 28(1), a reporting entity may commence to provide a designated service to a customer before the reporting entity complies with that subsection if:
(a) circumstances specified in the AML/CTF Rules apply; and
(b) the reporting entity determines on reasonable grounds that commencing to provide the designated service to the customer before subsection 28(1) is complied with in relation to the customer is essential to avoid interrupting the ordinary course of business; and
(c) the reporting entity has AML/CTF policies to comply with subsection 28(1) in relation to the customer:
(i) as soon as reasonably practicable after commencing to provide the designated service to the customer; and
(ii) within the period (if any) specified in the AML/CTF Rules; and
(d) the reporting entity determines on reasonable grounds that any additional risk of money laundering, terrorism financing or proliferation financing associated with complying with subsection 28(1) in relation to the customer after commencing to provide the designated service to the customer is low; and
(e) the reporting entity implements AML/CTF policies to mitigate and manage the associated risks; and
(f) the reporting entity complies with the requirements (if any) specified in the AML/CTF Rules.
(1) A reporting entity must monitor its customers in relation to the provision of its designated services to appropriately identify, assess, manage and mitigate the risks of money laundering, financing of terrorism and proliferation financing that the reporting entity may reasonably face in providing designated services.
Note 1: See also section 31 (simplified customer due diligence).
Note 2: See also section 32 (enhanced customer due diligence).
Note 3: See section 36 for rules that apply to pre‑commencement customers.
(2) Without limiting subsection (1), if the reporting entity provides its designated services at or through a permanent establishment of the reporting entity in Australia, the reporting entity must:
(a) monitor for unusual transactions and behaviours of customers that may give rise to a suspicious matter reporting obligation; and
(b) if the reporting entity has a business relationship with a customer—review and, where appropriate, update the reporting entity’s identification and assessment of the ML/TF risk of the customer in the following circumstances:
(i) if there is a significant change to any of the matters mentioned in subsection 28(4);
(ii) if there are unusual transactions and behaviours in relation to the customer that may give rise to a suspicious matter reporting obligation;
(iii) circumstances specified in the AML/CTF Rules; and
(c) if the reporting entity has a business relationship with a customer—review and, where appropriate, update and reverify KYC information relating to the customer at a frequency appropriate to the ML/TF risk of the customer, and if either of the following occur:
(i) the reporting entity has doubts about the adequacy or veracity of the KYC information relating to the customer;
(ii) circumstances specified in the AML/CTF Rules; and
(d) if the reporting entity has a business relationship with a customer that is a pre‑commencement customer—monitor for significant changes in the nature and purpose of the business relationship that may result in the ML/TF risk of the customer being medium or high; and
(e) comply with any other requirements specified in the AML/CTF Rules.
Note: For
suspicious matter reporting obligation , see section 41.(3) The AML/CTF Rules may do either or both of the following:
(a) specify requirements that must be complied with in relation to the matters mentioned in subsection (2);
(b) set out circumstances in which a reporting entity is taken to comply with a matter mentioned in that subsection.
(4) Without limiting subparagraph (2)(b)(iii) or (2)(c)(ii), paragraph (2)(e) or subsection (3), AML/CTF Rules made for the purposes of any of those provisions may make different provision in relation to different classes of customers, including:
(a) customers in relation to whom simplified due diligence measures may be taken in accordance with section 31; and
(b) customers in relation to whom enhanced customer due diligence measures must be undertaken in accordance with section 32.
Note: This subsection also does not limit subsection 13(3) of the
Legislation Act 2003 or subsection 33(3AB) of theActs Interpretation Act 1901 : see section 249.(5) For the purposes of this section,
unusual transactions and behaviours of a customer include the following:
(a) unusually large or complex transactions relating to the customer;
(b) transactions and behaviours that are part of an unusual pattern of transactions and behaviours relating to the customer;
(c) transactions and behaviours that have no apparent economic or lawful purpose;
(d) transactions and behaviours that are inconsistent with what the reporting entity reasonably knows about any of the following:
(i) the customer;
(ii) the nature and purpose of the business relationship;
(iii) the ML/TF risk of the customer;
(iv) where relevant, the customer’s source of funds or source of wealth.
(6) Subsection (1) is a civil penalty provision.
(7) A reporting entity that contravenes subsection (1) in relation to a customer commits a separate contravention of that subsection in respect of each designated service that the reporting entity provides to the customer at or through a permanent establishment of the reporting entity in Australia.
(8) A reporting entity that contravenes subsection (1) in relation to a customer commits a separate contravention of that subsection on each day that the reporting entity provides designated services to the customer at or through a permanent establishment of the reporting entity in a foreign country.
Registered remittance affiliates
(9) If an obligation is imposed by subsection (1) on a reporting entity in its capacity as a registered remittance affiliate of a registered remittance network provider, the obligation may be discharged by the registered remittance network provider.
Exemption
(10) This section does not apply to a designated service covered by item 54 of table 1 in section 6.
Note: Item 54 of table 1 in section 6 covers a holder of an Australian financial services licence who arranges for a person to receive a designated service.
In complying with the obligation imposed on a reporting entity under subsection 28(1) or 30(1) in relation to a customer, the reporting entity may apply simplified customer due diligence measures if:
(a) the ML/TF risk of the customer is low; and
(b) section 32 does not apply to the customer; and
(c) the reporting entity complies with the requirements specified in the AML/CTF Rules.
In complying with the obligation imposed on a reporting entity under subsection 28(1) or 30(1) in relation to a customer, the reporting entity must apply enhanced customer due diligence measures appropriate to the ML/TF risk of the customer if one or more of the following apply to the customer:
(a) the ML/TF risk of the customer is high;
(b) if:
(i) a suspicious matter reporting obligation arises for the reporting entity in relation to the customer; and
(ii) the reporting entity proposes to continue to provide a designated service or designated services to the customer;
(c) the customer, any beneficial owner of the customer, any person on whose behalf the customer is receiving the designated service, or any person acting on behalf of the customer, is a foreign politically exposed person;
(d) the customer, any beneficial owner of the customer, any person on whose behalf the customer is receiving the designated service, or any person acting on behalf of the customer, is:
(i) an individual who is physically present in a high risk jurisdiction for which the international body known as the Financial Action Task Force has called for enhanced due diligence to be applied; or
(ii) a body corporate or legal arrangement that was formed in a high risk jurisdiction for which the international body known as the Financial Action Task Force has called for enhanced due diligence to be applied;
(e) the designated service provided or proposed to be provided to the customer is provided or proposed to be provided as part of a nested services relationship;
(f) the customer is of a kind specified in the AML/CTF Rules.
Note: For
suspicious matter reporting obligation , see section 41.
Repeal the Division, substitute:
(1) A customer of a reporting entity is a
pre‑commencement customer if:
(a) the reporting entity commenced before 12 December 2007 to provide a designated service covered by an item of table 1, 2 or 3 in section 6 of this Act to the customer; or
(b) the business relationship between the reporting entity and the customer involved the provision of only any of the following designated services in section 6 of this Act as at the start of 1 July 2026:
(i) designated services covered by item 2 of table 2 in section 6;
(ii) designated services covered by table 5 in section 6;
(iii) designated services covered by table 6 in section 6.
(2) A pre‑commencement customer of a reporting entity ceases to be a pre‑commencement customer when the reporting entity complies with subsection 28(1) in relation to the customer.
(3) Subsection 28(1) and paragraph 30(2)(b) do not apply in relation to a customer that is a pre‑commencement customer.
(4) However, subsection 28(1) applies in relation to a customer that is a pre‑commencement customer if:
(a) a suspicious matter reporting obligation arises for the reporting entity in relation to the customer; or
(b) there is a significant change in the nature and purpose of the business relationship with the customer which results in the ML/TF risk of the customer being medium or high.
Note: For
suspicious matter reporting obligation , see section 41.
Omit “
Applicable customer identification procedures ”, substitute “Collection and verification of KYC information ”.
Omit “the carrying out by a reporting entity of an applicable customer identification procedure or an identity verification procedure”, substitute “a reporting entity complying with paragraphs 28(3)(c) and (d)”.
Omit “carrying out the applicable customer identification procedures”, substitute “complying with paragraphs 28(3)(c) and (d)”.
Omit “carrying out applicable customer identification procedures or identity verification procedures”, substitute “complying with paragraphs 28(3)(c) and (d)”.
Omit “carrying out the applicable customer identification procedure or an identity verification procedure”, substitute “complying with paragraphs 28(3)(c) and (d)”.
Omit “
applicable customer identification procedures ”, substitute “collection and verification of KYC information ”.
Omit “applicable customer identification procedures”, substitute “the collection and verification of KYC information relating to a customer in accordance with paragraphs 28(3)(c) and (d)”.
Omit “carried out the applicable customer identification procedure”, substitute “complied with paragraphs 28(3)(c) and (d)”.
Omit “
applicable customer identification procedures ”, substitute “collection and verification of KYC information ”.
Omit “carried out an applicable customer identification procedure”, substitute “complied with paragraph 28(3)(c) or (d)”.
Omit “carried out the applicable customer identification procedure”, substitute “complied with paragraph 28(3)(c) or (d)”.
Omit “Division 6”, substitute “Divisions 3 and 4”.
Omit “applicable customer identification procedures it carries out or that it is taken to have carried out”, substitute “customer due diligence”.
Omit “applicable customer identification procedures”, substitute “the collection and verification of KYC information about a customer”.
Omit “
the carrying out of identification procedures ”, substitute “customer due diligence and other procedures ”.
Repeal the sections, substitute:
(1) This section applies to a reporting entity if the reporting entity complies with section 28 (undertaking initial customer due diligence) or 30 (undertaking ongoing customer due diligence) in relation to a customer to whom the reporting entity provides a designated service, or proposed or proposes to provide a designated service.
(2) The reporting entity must retain, until the end of the 7 year period that begins when the business relationship ends or the reporting entity completes the provision of the occasional transaction, records that:
(a) are reasonably necessary to demonstrate compliance with the reporting entity’s obligations under Part 2; and
(b) are in the English language, or in a form in which the records are readily accessible and readily convertible into writing in the English language.
(3) Without limiting paragraph (2)(a), the records must include:
(a) sufficient and accurate records which demonstrate the type and content of the data collected by the reporting entity in relation to the customer for the purposes of complying with section 28 or 30; and
(b) records of any analysis, identification or assessment of ML/TF risk, or decision making, undertaken by the reporting entity in relation to the customer for the purposes of complying with section 28 or 30.
(4) Subsection (2) is a civil penalty provision.
Omit “
identification procedures ”, substitute “initial customer due diligence ”.
Omit “carried out an applicable customer identification procedure”, substitute “complied with paragraph 28(3)(c) or (d)”.
Omit “an applicable customer identification procedure”, substitute “customer due diligence under Part 2”.
Omit “an applicable customer identification procedure”, substitute “customer due diligence”.
Repeal the paragraph, substitute:
(b) the customer due diligence is under section 28 (undertaking initial customer due diligence) or 30 (undertaking ongoing customer due diligence).
Omit “applicable customer identification procedure is under this Act”, substitute “customer due diligence is under section 28 or 30”.
Omit “an applicable customer identification procedure”, substitute “customer due diligence”.
Repeal the paragraph, substitute:
(c) the customer due diligence is under section 28 or 30.
Omit “applicable customer identification procedure is under this Act”, substitute “customer due diligence is under section 28 or 30”.
34
Subsection 184(4) (paragraph (a) of the definition of designated infringement notice provision ) Repeal the paragraph.
35
Subsection 184(4) (before paragraph (fl) of the definition of designated infringement notice provision )
25
Section 5 (paragraphs (e) and (f) of the definition of loan ) Omit “(within the meaning of the
Competition and Consumer Act 2010 )’.
At the end of the definition, add:
; and (d) a digital representation of value:
(i) that is issued by or under the authority of a government body; and
(ii) that is intended to function as money.
Example: Central bank digital currency.
26A
Section 5 (after paragraph (b) of the definition of qualified accountant ) Insert:
(ba) the Institute of Public Accountants; or
Repeal the definition, substitute:
security : see subsections 7A(1) and (2).
Repeal the definition.
Insert:
(1)
Security has the same meaning as in Chapter 7 of theCorporations Act 2001 .(2) Despite subsection (1), the AML/CTF Rules may provide:
(a) that a specified thing is a
security ; or(b) that a specified thing is not a
security .(3)
Derivative has the same meaning as in Chapter 7 of theCorporations Act 2001 .(4) Despite subsection (3), the AML/CTF Rules may provide:
(a) that a specified thing is a
derivative ; or(b) that a specified thing is not a
derivative .
Omit “and (2) do not apply to the disclosure of information by a reporting entity”, substitute “, (2) and (2A) do not apply to the disclosure of information by a person”.
Repeal the definition, substitute:
account includes:
(a) an account which has a nil balance; and
(b) an account in relation to which no transactions have been allowed.
Insert:
Australian Border Force has the same meaning as in theAustralian Border Force Act 2015 .
credit card acquirer means a person who:
(a) is a participant of a designated payment system under the
Payment Systems (Regulation) Act 1998 ; and(b) pays, or accepts liability to pay, a merchant (either directly or through another person) for goods or services obtained, or to be obtained, by another person from the merchant in a credit card transaction.
credit card issuer means a person who:
(a) is a participant of a designated payment system under the
Payment Systems (Regulation) Act 1998 ; and(b) issues a credit card to a customer; and
(c) either:
(i) receives payment from the customer for amounts owed by the customer, under the terms governing the credit card, for credit card transactions; or
(ii) pays, or accepts liability to pay, a credit card acquirer (either directly or through another person) for amounts paid or payable by the acquirer to a merchant for the customer’s credit card transactions.
deductible gift recipient has the same meaning as in theIncome Tax Assessment Act 1997 .
departing Australia superannuation payment has the same meaning as in theIncome Tax Assessment Act 1997 .
exchange settlement account means an account provided by the Reserve Bank of Australia that is used for the final settlement of obligations between holders of such accounts.
extension notice : see subsection 39B(7).
keep open notice : see subsection 39B(1).
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 :
(a) means a designated service covered by an item of table 3 in section 6 of this 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(b) includes an excluded wagering service (within the meaning of that Act), but does not include a telephone betting service (within the meaning of that Act).
representative office , of a foreign bank, is an office of the foreign bank in Australia in respect of which the foreign bank has written consent to establish the representative office in Australia for the purposes of section 67 of theBanking Act 1959 .
senior member of an agency: see subsection 39B(3).
serious offence : see subsection 39B(2).
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.
3
Subsection 6(2) (table item 1, column headed “Provision of a designated service”, paragraph (e)) Repeal the paragraph, substitute:
(e) a credit card issuer; or
(f) a credit card acquirer; or
(g) a person specified in the AML/CTF Rules
4
Subsection 6(2) (table item 2, column headed “Provision of a designated service”, paragraph (e)) Repeal the paragraph, substitute:
(e) a credit card issuer; or
(f) a credit card acquirer; or
(g) a person specified in the AML/CTF Rules
5
Subsection 6(2) (table item 3, column headed “Provision of a designated service”, paragraph (e)) Repeal the paragraph, substitute:
(e) a credit card issuer; or
(f) a credit card acquirer; or
(g) a person specified in the AML/CTF Rules
6
Subsection 6(2) (table item 47, column headed “Provision of a designated service”, paragraph (b)) Repeal the paragraph, substitute:
(b) the service is not provided in the course of carrying on a business that provides short‑term accommodation for travellers; and
(c) the service is not specified in the AML/CTF Rules
Add:
(1) This section applies if:
(a) a reporting entity receives a keep open notice in relation to a customer; and
(b) the keep open notice is in force.
(2) Despite any other provision of this Part or Part 1A, section 28, 30 or 26G does not apply to the reporting entity in respect of the provision of a designated service to the customer to the extent that the reporting entity reasonably believes that compliance with that section would or could reasonably be expected to alert the customer to the existence of a criminal investigation.
Note 1: A suspicious matter reporting obligation does not arise for a reporting entity in relation to a customer upon the receipt of a keep open notice. However, a suspicious matter reporting obligation may otherwise arise for the reporting entity in relation to the customer in accordance with section 41.
Note 2: A keep open notice does not compel a reporting entity to continue to provide a designated service to a customer.
(3) For the purposes of subsection (2), it is immaterial whether the reporting entity knows of the existence or otherwise of a criminal investigation.
(4) If subsection (2) applies in relation to the provision by a reporting entity of a designated service to a customer, section 139 (providing a designated service using a false customer name or customer anonymity) does not apply in relation to the provision by the reporting entity of that designated service to the customer.
Note: A defendant bears an evidential burden in relation to the matter in subsection (4) (see subsection 13.3(3) of the
Criminal Code ).
(1) A senior member of an agency mentioned in subsection (4) may issue a notice (a
keep open notice ) to a reporting entity if the senior member reasonably believes that the provision of a designated service by the reporting entity to a customer would assist in the investigation by the agency of a serious offence.(2) A
serious offence is:
(a) an offence against a law of the Commonwealth, or a law of a State or Territory, that is punishable by imprisonment for 2 years or more; or
(b) an offence against a law of a foreign country that involves an act or omission that, if it had occurred in Australia, would have constituted an offence covered by paragraph (a).
(3) A
senior member of an agency is:
(a) the head of an agency mentioned in subsection (4); or
(b) a statutory office holder of an agency mentioned in subsection (4); or
(c) an officer or employee of an agency mentioned in subsection (4) that:
(i) is an SES employee or acting SES employee in the agency; or
(ii) holds or is acting in a position in the agency that is equivalent to or higher than a position occupied by an SES employee; or
(iii) holds or is acting in a position that is prescribed by the AML/CTF Rules for the purposes of this paragraph.
(4) The agencies are as follows:
(a) the Australian Border Force;
(b) the Australian Crime Commission;
(c) the Australian Federal Police;
(d) the National Anti‑Corruption Commission;
(e) the New South Wales Crime Commission
; (f) the police force or police service of a State or the Northern Territory;
(g) a Commonwealth, State or Territory agency prescribed by the AML/CTF Rules.
(5) A keep open notice must:
(a) be in the form prescribed by the AML/CTF Rules for the purposes of this paragraph; and
(b) contain such information, and be accompanied by such documents, as is required by the AML/CTF Rules.
(6) Subject to subsections (7) and (8), a keep open notice is in force for the period:
(a) starting on the day specified in the notice; and
(b) ending on the earlier of:
(i) the day that is 6 months after the day specified in the notice; and
(ii) if the investigation to which the notice relates has ended—the day the agency that issued the notice notifies the reporting entity and the AUSTRAC CEO that the relevant investigation has ended.
(7) A senior member of an agency that issued a keep open notice to a reporting entity may, by notice (an
extension notice ) to the reporting entity in the form prescribed by the AML/CTF Rules for the purposes of this subsection, extend the period for which the keep open notice remains in force for a further period of 6 months if:
(a) the extension notice is issued to the reporting entity before the expiry of the keep open notice; and
(b) subject to subsection (8), the keep open notice has not previously been extended more than once under this subsection; and
(c) the senior member of the agency reasonably believes that the continued provision of a designated service by the reporting entity to the customer would assist in the investigation by the agency of a serious offence.
(8) Paragraph (7)(b) does not apply in relation to an extension notice if:
(a) the keep open notice has previously been extended at least twice under subsection (7); and
(b) a senior member of the agency that issued the keep open notice applies to the AUSTRAC CEO in the form prescribed by the AML/CTF Rules for the purposes of this paragraph; and
(c) the AUSTRAC CEO is satisfied that the continued provision of a designated service by the reporting entity to the customer would assist in the investigation by the agency of a serious offence; and
(d) the AUSTRAC CEO gives notice, in writing, to the agency that paragraph (7)(b) does not apply in relation to the extension notice.
(9) The AUSTRAC CEO may give a notice under paragraph (8)(d) more than once in relation to a particular keep open notice.
(1) This section applies if a senior member of an agency mentioned in subsection 39B(4) issues to a reporting entity:
(a) a keep open notice under subsection 39B(1); or
(b) an extension notice under subsection 39B(7).
(2) The senior member of the agency must send a copy of the keep open notice or extension notice to the AUSTRAC CEO at the same time the notice is issued to the reporting entity.
(3) The AUSTRAC CEO may revoke:
(a) a keep open notice issued under subsection 39B(1); or
(b) an extension notice under subsection 39B(7);
if the AUSTRAC CEO is satisfied that the notice does not comply with the requirements of this Act or the AML/CTF Rules.
(4) If the AUSTRAC CEO revokes a notice under subsection (3), the AUSTRAC CEO must notify:
(a) the agency that issued the notice; and
(b) the reporting entity to whom the notice was issued.
(1) This section applies if a suspicious matter reporting obligation arises for a reporting entity in relation to a customer.
Note: For
suspicious matter reporting obligation , see section 41.(2) Despite any other provision of this Part or Part 1A, section 28, 30, or 26G does not apply to the reporting entity in respect of the provision of a designated service to the customer to the extent that the reporting entity reasonably believes that compliance with that section would or could reasonably be expected to alert the customer to the reporting entity’s suspicion.
Section 28 (undertaking initial customer due diligence) does not apply to a reporting entity in respect of the provision of a designated service to a customer if:
(a) the designated service is specified in column 1 of an item of the following table; and
(b) the conditions (if any) specified in column 2 of the item are satisfied; and
(c) the reporting entity does not have an enhanced due diligence obligation in relation to the customer under section 32.
1 | item 2 or 3 of table 1 in section 6 |
(b) the designated service:
|
2 | paragraph (a) of item 17 of table 1 in section 6 |
(c) the cheque contains details of the payee; and
|
3 | paragraph (a) of item 17 of table 1 in section 6 |
|
4 | item 25 or 26 of table 1 in section 6 | the sum of the face value of the traveller’s cheque or traveller’s cheques issued, cashed or redeemed in any one transaction is less than $1,000 |
5 | item 25 or 26 of table 1 in section 6 |
|
6 | item 33 of table 1 in section 6 | (a) the designated service is a disposal; and
|
7 | paragraph (a) of item 43 of table 1 in section 6 |
|
8 | item 43 or 45 of table 1 in section 6 |
|
9 | item 50 of table 1 or item 14 of table 3 in section 6 |
(c) the value of the currency is less than $1,000 |
10 | item 50 of table 1 or item 14 of table 3 in section 6 |
(b) either or both of the following apply:
(c) the value of the currency is less than $1,000 |
11 | item 1 of table 2 in section 6 | the retail value of the bullion is less than $5,000 |
12 | item 1, 2, 4, 6, 7, 8 or 9 of table 3 in section 6 | (a) the reporting entity is a casino; and
|
13 | item 1, 2, 4, 6, 7, 8 or 9 of table 3 in section 6 | (a) the reporting entity is a casino; and
|
14 | item 1 or 2 of table 3 in section 6 | the reporting entity providing the designated service is an on‑course bookmaker or a totalisator agency board |
15 | item 4, 7 or 8 of table 3 in section 6 |
|
16 | item 5 or 6 of table 3 in section 6 |
|
17 | item 8, 9 or 10 of table 3 in section 6 |
|
(1) Divisions 1 to 6 do not apply to a designated service covered by item 31 of table 1 in section 6.
Note: Item 31 of table 1 in section 6 deals with an intermediary institution passing on a transfer message in a value transfer chain.
(2) A reporting entity must monitor its customers, in relation to the provision of a designated service covered by item 31 of table 1 in section 6 at or through a permanent establishment of the reporting entity in Australia, to identify unusual transactions and behaviours of the customers (within the meaning of section 30) that may give rise to a suspicious matter reporting obligation.
Note: For
suspicious matter reporting obligation , see section 41.(3) Subsection (2) is a civil penalty provision.
(4) A reporting entity that contravenes subsection (2) commits a separate contravention of that subsection in respect of each designated service that the reporting entity provides to a customer.
Add:
(7) Section 43 does not apply to a designated service that is:
(a) provided by a reporting entity that is an ADI; and
(b) provided to a customer that is an ADI.
(8) Section 43 does not apply to a designated service that is:
(a) provided by a reporting entity that is the holder of an exchange settlement account; and
(b) provided to a customer that is the holder of an exchange settlement account; and
(c) provided using the exchange settlement accounts held by the reporting entity and the customer.
Repeal the section.
Repeal the section, substitute:
Retention of records
(1) If a reporting entity commences to provide, or provides, a designated service to a customer, the reporting entity must retain sufficient records to allow the reconstruction of individual transactions relating to the provision of the designated service to the customer.
(2) A record under subsection (1) must comply with any requirements specified by the AML/CTF Rules.
Period for which records must be retained
(3) A person who is or was a reporting entity must retain a record referred to in subsection (1) for a period of 7 years beginning on the day the record is made.
Civil penalty
(4) Subsections (1) and (3) are civil penalty provisions.
AML/CTF Rules
(5) The AML/CTF Rules may specify kinds of records to which this section does not apply.
Insert:
The following is a simplified outline of this Part:
• This Part provides that certain provisions of this Act do not apply to certain persons, or in certain circumstances.
The following provisions of this Act do not apply to the Reserve Bank of Australia:
(a) Part 1A;
(b) Divisions 2 to 7 (other than section 39) of Part 2;
(c) Divisions 3 to 6 (other than section 49) of Part 3;
(d) Parts 4, 5 and 8;
(e) Divisions 3 to 6 of Part 10;
(f) section 236B.
Scope
(1) This section applies to a reporting entity if:
(a) the reporting entity and any related entity (within the meaning of the
Corporations Act 2001 ) that is a reporting entity have a total entitlement under licences issued by one or more States or Territories to operate no more than 15 gaming machines; and(b) the reporting entity and any related entity (within the meaning of the
Corporations Act 2001 ) that is a reporting entity only provide one or more designated services covered by any of the following:
(i) item 5 of table 3 in section 6;
(ii) item 6 of table 3 in section 6;
(iii) item 8 of table 3 in section 6;
(iv) item 9 of table 3 in section 6;
(v) item 10 of table 3 in section 6; and
(c) the provision of any designated services referred to in subparagraph (b)(ii), (iii) or (iv) involves a game played on a gaming machine.
Exemption
(2) The following provisions of the Act do not apply to the reporting entity:
(a) Part 1A;
(b) Divisions 2 to 6 of Part 2;
(c) sections 37 and 38 of Division 7 of Part 2;
(d) section 43;
(e) section 45;
(f) Division 5 of Part 3;
(g) Part 5;
(h) Division 1 of Part 10;
(i) sections 109 and 110;
(j) Divisions 3 to 7 of Part 10;
(k) section 236B.
Schedule 11 — Repeal of the Financial Transaction Reports Act 1988
Repeal the Act.
2
Section 5 (paragraph (g) of the definition of AUSTRAC entrusted person ) Omit “repealed section 40A of the”, substitute “section 40A of the repealed”.
3
Section 5 (note to the definition of AUSTRAC entrusted person ) Before “
Financial ”, insert “repealed”.
4
Section 5 (paragraph (d) of the definition of AUSTRAC information ) After “
1988 ”, insert “, as in force immediately before its repeal”.
After “CEO under section 41, 43 or 45”, insert “of this Act, or a reporting entity communicated information to the AUSTRAC CEO under subsection 16(1) or (1A) of the repealed
Financial Transaction Reports Act 1988 ”.
After “45”, insert “of this Act, or subsection 16(1) or (1A) of the repealed
Financial Transaction Reports Act 1988 ,”.
Before “
Financial ”, insert “repealed”.
Add:
(1) This section applies to a reporting entity if, immediately before this section commences, the reporting entity is retaining a record or a copy of a record, for the purposes of Part III of the
Financial Transaction Reports Act 1988 , in relation to a customer to whom the reporting entity has provided, or is providing, a designated service.(2) The reporting entity must continue to retain the record, or a copy of the record, until the end of the first 7‑year period throughout the whole of which the reporting entity did not provide any designated services to the customer.
Civil penalty
(3) Subsection (2) is a civil penalty provision.
Designated business groups
(4) If:
(a) a reporting entity is a member of a designated business group; and
(b) such other conditions (if any) as are specified in the AML/CTF Rules are satisfied;
the obligation imposed on the reporting entity by subsection (2) may be discharged by any other member of the group.
Before “
Financial ”, insert “repealed”.
Before “
Financial ”, insert “repealed”.
Add “of this Act or subsection 16(1) or (1A) of the repealed
Financial Transaction Reports Act 1988 ”.
Omit “section 41; and”, substitute “section 41 of this Act or subsection 16(1) or (1A) of the repealed
Financial Transaction Reports Act 1988 ;”.
Add:
(v) information given under subsection 16(4) of the repealed
Financial Transaction Reports Act 1988 ; and
After “subsection 41(2)”, insert “of this Act or subsection 16(1) or (1A) of the repealed
Financial Transaction Reports Act 1988 ”.
After “subsection 41(2)”, insert “of this Act or subsection 16(1) or (1A) of the repealed
Financial Transaction Reports Act 1988 ”.
After “subsection 41(2)”, insert “of this Act or subsection 16(1) or (1A) of the repealed
Financial Transaction Reports Act 1988 ”.
After “section 41”, insert “of this Act or subsection 16(1) or (1A) of the repealed
Financial Transaction Reports Act 1988 ”.
Add “of this Act or subsection 16(1) or (1A) of the repealed
Financial Transaction Reports Act 1988 ”.
Before “
Financial ”, insert “repealed”.
Before “
Financial ”, insert “repealed”.
Before “
Financial ”, insert “repealed”.
Before “
Financial ”, insert “repealed”.
23
Subsection 184(4) (before paragraph (g) of the definition of designated infringement notice provision ) Insert:
(fl) subsection 114B(2) (which deals with retaining certain records made or obtained under the repealed
Financial Transaction Reports Act 1988 );
Before “
Financial ”, insert “repealed”.
Before “
Financial ”, insert “repealed”.
Repeal the section.
Repeal the item.
Omit “5,”.
Repeal the subsection.
Omit “5,”.
31
Paragraphs 400.9(2)(a) and (d) of the Criminal Code Before “
Financial ”, insert “repealed”.
Before “
Financial ”, insert “repealed”.
Before “
Financial ”, insert “repealed”.
34
Section 338 (paragraphs (c), (d) and (e) of the definition of serious offence ) Before “
Financial ”, insert “repealed”.
35
Subsection 6(1) (paragraph (c) of the definition of relevant offence ) Before “
Financial ”, insert “repealed”.
Despite the repeal of the
Financial Transaction Reports Act 1988 by this Schedule, section 16 of that Act (as in force immediately before the commencement of this item) continues to apply on and after that commencement, as if that section had not been repealed, in relation to a communication of information of a kind referred to in paragraph (5A)(a), (b) or (c) or (5AA)(a) or (b) of that section.
(1) The Minister may, by legislative instrument, make rules prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments or repeals made by this Act.
(2) Without limiting subitem (1), rules made under this item before the end of the period of 4 years starting on the day this Schedule commences may provide that provisions of this Act, the
Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 , or any other Act or instrument, have effect with any modifications prescribed by the rules. Those provisions then have effect as if they were so modified.(3) To avoid doubt, the rules may not do the following:
(a) create an offence or civil penalty;
(b) provide powers of:
(i) arrest or detention; or
(ii) entry, search or seizure;
(c) impose a tax;
(d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;
(e) directly amend the text of this Act.
(4) This Act (other than subitem (3)) does not limit the rules that may be made under this item.
[
(109/24) |
0
0
0