Anti-Money Laundering and Counter-Terrorism Financing (Class Exemptions and Other Matters) Rules 2007

Anti‑Money Laundering and Counter‑Terrorism Financing (Class Exemptions and Other Matters) Rules 2007

made under section 229 of the

Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006

Compilation No. 77

Compilation date: 31 March 2026

Includes amendments: Anti‑Money Laundering and Counter‑Terrorism Financing Rules Amendment (Consequential Amendments) Instrument 2025 (F2025L01025) and Anti‑Money Laundering and Counter‑Terrorism Financing (Class Exemptions and Other Matters) Amendment Rules 2026 (F2026L00354)

Prepared by the Office of Parliamentary Counsel, Canberra

About this compilation

This compilation

This is a compilation of the Anti‑Money Laundering and Counter‑Terrorism Financing (Class Exemptions and Other Matters) Rules 2007 that shows the text of the law as amended and in force on 31/03/2026 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

1 Name of Instrument [see Note 1]

CHAPTER 1 

Part 1.1 Introduction

Part 1.2 Key terms and concepts

Chapter 2 Matters relating to professional services

2.1 Circumstances covered by subsection 6(5C) of the AML/CTF Act

Chapter 3 Exemption from initial customer due diligence—withdrawals from automatic teller machines

3.1 Exemption

3.2 Repeal

Chapter 4 Exemption from initial customer due diligence—transfer of value to self‑hosted virtual asset wallet

4.1 Exemption

4.2 Repeal

Chapter 5 Exemption from initial customer due diligence—transfer of value using gift card issued by reporting entity

5.1 Exemption

5.2 Repeal

Chapter 6 Gift card issued by person not providing designated services

6.1  Person who is not an ordering institution

6.2 Person who is not a beneficiary institution

6.3 Repeal

Chapter 7 Services provided by barristers to Australian government bodies

7.1 AML/CTF Act does not apply to services in certain circumstances

7.2 Repeal

Chapter 8 Clearing and settlement facilities

8.1 AML/CTF Act does not apply to incidental services provided by operator of facility

8.2 Repeal

Chapter 9 Legal assistance

9.1 AML/CTF Act does not apply to incidental services provided by community legal centre or legal aid

9.2 AML/CTF Act does not apply to services provided by duty lawyer etc.

9.3 Repeal

CHAPTER 21 Issuing or selling a security or derivative

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

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

CHAPTER 39 Exemption from initial customer due diligence - premium funding loans for a general insurance policy

CHAPTER 42 Commodity warehousing of grain

CHAPTER 43 Friendly Society closed funds

CHAPTER 45 Debt Collection

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

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

CHAPTER 49 International Uniform Give-Up Agreements

CHAPTER 67 Warrants

Notes to the Anti-Money Laundering and Counter-Terrorism Financing (Class Exemptions and Other Matters) Rules 2007

1 Name of Instrument [see Note 1]

  This Instrument is the Anti‑Money Laundering and Counter‑Terrorism Financing (Class Exemptions and Other Matters) Rules 2007.

CHAPTER 1 

Part 1.1 Introduction

1.1.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (AML/CTF Rules) are made pursuant to section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). Section 229 of the AML/CTF Act empowers the AUSTRAC CEO to make rules prescribing matters required or permitted by the AML/CTF Act to be prescribed by AML/CTF Rules. This Chapter commences on 1 June 2014.

Part 1.2 Key terms and concepts

Note: A number of expressions used in these Rules are defined in the AML/CTF Act, including the following:

(a) designated service;

(b) reporting entity;

(c) managed investment scheme.

1.2.1 In these Rules:

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

domestic transfer of value: a transfer of value is a domestic transfer of value if the value to be transferred is in Australia and, as a result of the transfer, the value will be in Australia.

gift card means a stored value card that is a gift card within the meaning of Schedule 2 to the Competition and Consumer Act 2010 (the Australian Consumer Law).

Chapter 2 Matters relating to professional services

2.1  Circumstances covered by subsection 6(5C) of the AML/CTF Act

  For the purposes of paragraph 6(5C)(f) of the AML/CTF Act, a specified circumstance is that any of the following things mentioned in item 3 of table 6 in section 6 of the Act are being received, held, controlled or managed as part of the provision by a real estate agent of the service of managing rental income and expenses through a trust account:

 (a) money;

 (b) accounts;

 (c) other property.

Note: Subsection 6(5C) of the AML/CTF Act sets out circumstances in which a service is not covered by item 3 of table 6 in section 6.

Chapter 3 Exemption from initial customer due diligence—withdrawals from automatic teller machines

3.1  Exemption

  For the purposes of subsection 39(3) of the AML/CTF Act, section 28 of that Act does not apply to a designated service if all of the following apply:

 (a) the service is covered by item 30 of table 1 in section 6 of that Act;

 (b) the provision of the service is an occasional transaction;

 (c) the instruction for transfer of value was for the withdrawal of money from an account held with a financial institution;

 (d) the instruction was given by the use of an ATM;

 (e) the value will be made available to the payee as physical currency;

 (f) the total value transferred as a result of the designated service, and any other services covered by item 30 of table 1 in section 6 of the AML/CTF Act that are linked or appear to be linked, is less than $10,000.

3.2  Repeal

  This Chapter is repealed on 31 March 2036.

Chapter 4 Exemption from initial customer due diligence—transfer of value to self‑hosted virtual asset wallet

4.1  Exemption

  For the purposes of subsection 39(3) of the AML/CTF Act, section 28 of that Act does not apply to a designated service if all of the following apply:

 (a) the service is covered by item 30 of table 1 in section 6 of that Act;

 (b) the provision of the service is an occasional transaction;

 (c) the instruction for transfer of value was for the withdrawal of virtual assets held by the reporting entity, in an account provided to the payer or otherwise on deposit for the payer (including in a virtual asset wallet);

 (d) the value will be made available to the payee by depositing virtual assets into a self‑hosted virtual asset wallet controlled by the payee;

 (e) the total value transferred as a result of the designated service, and any other services covered by item 30 of table 1 in section 6 of the AML/CTF Act that are linked or appear to be linked, is less than $1,000.

4.2  Repeal

  This Chapter is repealed on 31 March 2036.

Chapter 5 Exemption from initial customer due diligence—transfer of value using gift card issued by reporting entity

5.1  Exemption

  For the purposes of subsection 39(3) of the AML/CTF Act, section 28 of that Act does not apply to a designated service if all of the following apply:

 (a) the service is covered by item 29 of table 1 in section 6 of the Act;

 (b) the provision of the service is an occasional transaction;

 (c) the instruction for transfer of value is given by use of a gift card;

 (d) the gift card was issued by a reporting entity;

 (e) issuing the gift card was not a designated service;

 (f) the monetary value stored in connection with the gift card cannot be increased (other than because of a reversal of a payment made using the card or the correction of an error);

 (g) no part of the monetary value stored in connection with the gift card may be withdrawn in cash;

 (h) the value to be transferred is money;

 (i) if the gift card was issued on or after 31 March 2029—the transfer of value is a domestic transfer of value;

 (j) if the gift card was issued on or after 30 September 2027—the ordering institution has reasonable grounds to believe that the person responsible for administering the scheme in which the gift card can be used has taken reasonable steps to mitigate and manage the risk that the card will be used as an instrument of money laundering, financing of terrorism or other crimes.

Note: Subsection 63A(4) of the Act sets out circumstances in which a person is not an ordering institution.

5.2  Repeal

  This Chapter is repealed on 31 March 2031.

Chapter 6 Gift card issued by person not providing designated services

6.1  Person who is not an ordering institution

  For the purposes of paragraph 63A(4)(b) of the AML/CTF Act, a person is not an ordering institution if all of the following apply:

 (a) the person accepts an instruction for the transfer of value that is given by use of a gift card;

 (b) the gift card was issued by the person in the course of carrying on a business that does not otherwise involve the provision of designated services;

 (c) issuing the gift card was not a designated service;

 (d) the monetary value stored in connection with the gift card cannot be increased (other than because of a reversal of a payment made using the card or the correction of an error);

 (e) no part of the monetary value stored in connection with the gift card may be withdrawn in cash;

 (f) if the gift card was issued on or after 31 March 2029—the transfer of value is a domestic transfer of value;

 (g) if the gift card was issued on or after 30 September 2027—the person has taken reasonable steps to mitigate and manage the risk that the gift card will be used as an instrument of money laundering, financing of terrorism or other crimes.

Note: For rules determining whether a person is an ordering institution, see section 8‑1 of the Anti‑Money Laundering and Counter‑Terrorism Financing Rules 2025.

6.2  Person who is not a beneficiary institution

  For the purposes of paragraph 63A(8)(b) of the AML/CTF Act, a person is not a beneficiary institution if all the following apply:

 (a) the person makes value available as a result of an instruction that was given by use of a gift card;

 (b) the gift card was issued by the person in the course of carrying on a business that does not otherwise involve the provision of designated services;

 (c) issuing the gift card was not a designated service;

 (d) the monetary value stored in connection with the gift card cannot be increased (other than because of a reversal of a payment made using the card or the correction of an error);

 (e) no part of the monetary value stored in connection with the gift card may be withdrawn in cash;

 (f) if the gift card was issued on or after 31 March 2029—the transfer of value is a domestic transfer of value;

 (g) if the gift card was issued on or after 30 September 2027—the person has taken reasonable steps to mitigate and manage the risk that the gift card will be used as an instrument of money laundering, financing of terrorism or other crimes.

Note: For rules determining whether a person is a beneficiary institution, see section 8‑2 of the Anti‑Money Laundering and Counter‑Terrorism Financing Rules 2025.

6.3  Repeal

  This Chapter is repealed on 31 March 2031.

Chapter 7 Services provided by barristers to Australian government bodies

7.1  AML/CTF Act does not apply to services in certain circumstances

  For the purposes of subsection 247(3) of the AML/CTF Act, that Act does not apply to a designated service if:

 (a) the service is covered by an item of table 6 in section 6 of that Act; and

 (b) the service is provided by a person in the course of legal practice as a barrister; and

 (c) the service is provided to an Australian government body.

7.2  Repeal

  This Chapter is repealed on 31 March 2036.

Chapter 8 Clearing and settlement facilities

8.1  AML/CTF Act does not apply to incidental services provided by operator of facility

  For the purposes of subsection 247(3) of the AML/CTF Act, that Act does not apply to a designated service if:

 (a) the service is covered by an item of table 6 in section 6 of the Act; and

 (b) the service is provided by:

 (i) the operator of a clearing and settlement facility, within the meaning of the Corporations Act 2001; or

 (ii) a member of a business group that includes the operator of a clearing and settlement facility; and

 (c) the provision of the service is incidental to the operation of the clearing and settlement facility in this jurisdiction, within the meaning of the Corporations Act 2001.

8.2  Repeal

  This Chapter is repealed on 31 March 2031.

Chapter 9 Legal assistance

9.1  AML/CTF Act does not apply to incidental services provided by community legal centre or legal aid

  For the purposes of subsection 247(3) of the AML/CTF Act, that Act does not apply to a designated service if:

 (a) the service is covered by item 1, 3 or 4 of table 6 in section 6 of the Act; and

 (b) the service is incidental to the provision of professional legal services that are not designated services; and

 (c) the service is:

 (i) provided by a person who is accredited under the National Accreditation Scheme of Community Legal Centres Australia; or

 (ii) provided by an Aboriginal and Torres Strait Islander Legal Service or Family Violence Prevention and Legal Service that receives funding under the National Access to Justice Partnership agreement between the Commonwealth and the States and Territories; or

 (iii) provided by or paid for by a legal aid commission (including funding payment for the service through a grant of legal aid).

9.2  AML/CTF Act does not apply to services provided by duty lawyer etc.

  For the purposes of subsection 247(3) of the AML/CTF Act, that Act does not apply to a designated service if:

 (a) the service is covered by an item of table 6 in section 6 of that Act; and

 (b) the service is provided to a client by a person in the course of practice as a duty lawyer or advocate at a court or tribunal, or because of a referral for legal assistance by a court or tribunal.

9.3  Repeal

  This Chapter is repealed on 31 March 2033.

CHAPTER 21 Issuing or selling a security or derivative

Anti-Money Laundering and Counter-Terrorism Financing Rules for issuing or selling a security or derivative

21.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for paragraph (d) of item 35 of table 1 in subsection 6(2) and subsection 247(3) of that Act.

21.2 For paragraph (d) of item 35 of table 1 in subsection 6(2) of the AML/CTF Act, the condition applies that the service is not a disposal of a security or derivative through an agent who is doing so in the course of carrying on a business of disposing of securities or derivatives in the capacity of agent, within the terms of item 33 of table 1 in subsection 6(2) of that Act.

21.3  For subsection 247(3) of the AML/CTF Act, the following designated services provided in any of the following circumstances are specified:

(1)  a person issuing or selling a security or derivative to another person (transaction) under item 35 of table 1 in subsection 6(2) of the AML/CTF Act and the transaction occurs:

(a) on a declared financial market; or

(aa) on a specified financial market; or

(b) on a financial market in a foreign jurisdiction where:

(i) the financial market uses a proprietary system to facilitate the transaction; and

(ii) as a result of the use of that proprietary system, it is not reasonably practicable to conduct initial customer due diligence on the customer in that jurisdiction; or

(2) an issue of an interest in a managed investment scheme (including an option to acquire an interest in a managed investment scheme) where the managed investment scheme is quoted on a declared financial market, in the following circumstances:

(a) the issue is in accordance with relevant requirements in the Corporations Act 2001 pursuant to a dividend or distribution plan (also known as a distribution reinvestment plan); and

(b) the interest is to be quoted on a declared financial market; or

(3) an issue of an interest in a managed investment scheme (including an option to acquire an interest in a managed investment scheme) where the managed investment scheme is quoted or to be quoted on a declared financial market, in the following circumstances:

(a) the issue is in accordance with relevant requirements in the Corporations Act 2001 pursuant to fundraising (including an initial public offering and a rights issue); and

(b) the interest is to be quoted on a declared financial market.

(4) an issue (but not sale, transfer or redemption) of an interest in a registered managed investment scheme (except for an interest which forms part of a stapled security) covered by item 35 of table 1 in subsection 6(2) of the AML/CTF Act (item 35 designated service) by a reporting entity (first reporting entity) in the following circumstances:

(a) the processing and settlement of the issue of the interest in the registered managed investment scheme occurs through a MIS service operated:

(i) only by:

(A) a declared financial market; or

(B) the operator of a financial market in respect of which an Australian market licence exemption has been made; or

(ii) only by both of the persons specified in subparagraphs 21.3(4)(a)(i)(A) and (B);

(b) the interest in the registered managed investment scheme is not quoted on a financial market; and

(c) the customer of the item 35 designated service has also been provided or will be provided with a designated service covered by item 33 of table 1 in subsection 6(2) of the AML/CTF Act by another reporting entity (second reporting entity); and

(d) the second reporting entity:

(i) is a participant;

(ii) has carried out initial customer due diligence in respect to the customer; and

(iii) has confirmed, through the MIS service, to the first reporting entity, that initial customer due diligence has been carried out for that customer by the second reporting entity; and

(e) prior to the first reporting entity issuing the interest in the registered managed investment scheme to the customer, the first reporting entity has received, through the MIS service, confirmation from the second reporting entity that initial customer due diligence has been carried out in respect to the customer.

21.4 In this Chapter:

(1) ‘Australian market licence exemption’ means an exemption from the financial market licensing provisions in Part 7.2 of the Corporations Act 2001 granted pursuant to section 791C of that Act;

(1A) ‘declared financial market’ has the meaning given by section 9 of the Corporations Act 2001;

(2) ‘dividend or distribution plan’ has the meaning given by Chapter 19 of the ASX Listing Rules issued, as in force on 1 December 2019, by ASX Limited trading as the Australian Securities Exchange;

(3) ‘initial public offering’ in the context of an interest in a managed investment scheme is an offering of that interest by a reporting entity, for the first time, to an applicant who subscribes for that interest, before the interest is quoted on a declared financial market;

(4) ‘interest’ in a managed investment scheme includes a stapled security whereby one or more financial products are transferred together;

(6) ‘MIS service’ means an electronic facility which:

(a) is solely used to receive, process and settle issues, sales, transfers and redemptions of interests in managed investment schemes (and associated receipts and payments); and

(b) for an issue of a new interest in a managed investment scheme – requires initial customer due diligence in relation to a customer to be carried out by the second reporting entity; and

(c) requires the second reporting entity to, through the MIS service, advise the first reporting entity when initial customer due diligence has been carried out in relation to the customer to whom the interest is to be issued prior to the issue of that interest;

(7) ‘participant’ has the meaning given by the Corporations Act 2001;

(9) ‘registered managed investment scheme’ means a managed investment scheme that is registered under section 601EB of the Corporations Act 2001;

(10) ‘proprietary system’ means a system or systems for the electronic trading, clearing and settlement of transactions relating to securities or derivatives;

(11) ‘rights issue’ has the meaning given by section 9A of the Corporations Act 2001;

(12) ‘specified financial market’ means

(a) the Australian Securities Exchange Limited (ACN 000 943 377); or

(b) FEX Global Pty Ltd (ACN 124 127 224).

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to http://www.oaic.gov.au or call 1300 363 992.

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

22.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 247(3) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

22.2 Subject to paragraph 22.3, the AML/CTF Act does not apply to a designated service that:

(1) is of a kind described in item 35 of table 1 in section 6 of the AML/CTF Act; and

(2) relates to the over-the-counter derivatives market in Australia in respect of one or more of the following commodities or products:

(a) electricity; or

(b) gas; or

(c) environmental products; or

(d) coal, oil, diesel or other form of fuel used in the generation of electricity by either:

(i) the provider of the designated service; or

(ii)  the customer; or

(e) interest rate derivative products; or

(f) weather index or scale products relating to precipitation, temperature, wind, humidity or solar exposure; or

(g) foreign exchange derivative products; or

(h) oil derivative products linked to gas supply contracts.

22.3 The exemption in paragraph 22.2 only applies if:

(1) the person who provides the designated service:

(a) is registered as a Registered Participant under the National Electricity Rules; or

(b) is a Generator who under Rule 2.9.3 of the National Electricity Rules is exempt from registration; or

(c) is registered as a Rule Participant under the Electricity System and Market Rules; or

(d) in a registrable capacity set out in Rule 135A, is registered as a Registered Participant under Rule 135AE of the National Gas Rules; or

(e) in a registrable capacity set out in Rule 135ABA, is registered as a Registered Participant under Rule 135AE of the National Gas Rules; and

(f) one of the following applies:

(i) the person holds an Australian financial services licence that authorises that person to provide the designated service; or

(ii) the person acts through an agent that holds an Australian financial services licence which authorises that agent to provide the designated service on behalf of the person, or is appointed as an authorised representative under section 916A of the Corporations Act 2001 to provide the designated service on behalf of the person; or

(iii) the person is, by regulation made under section 134 of the Electricity Industry Act 2004 (WA), exempt from the requirement to hold an Australian financial services licence which authorises that person to provide the designated service; and

(2) the person who is the customer of the designated service:

(a) is registered as a Registered Participant under the National Electricity Rules; or

(b) is a Generator who under Rule 2.9.3 of the National Electricity Rules is exempt from registration; or

(c) is registered as a Rule Participant under the Electricity System and Market Rules; or

(d) in a registrable capacity set out in Rule 135A, is registered as a Registered Participant under Rule 135AE of the National Gas Rules; or

(e) in a registrable capacity set out in Rule 135ABA, is registered as a Registered Participant under Rule 135AE of the National Gas Rules; or

(f) is acting on behalf of a person specified in subparagraphs 22.3(2)(a)-(e).

22.4 Subject to paragraph 22.5, the AML/CTF Act does not apply to a designated service that:

(1) is of a kind described in item 33 of table 1 in section 6 of the AML/CTF Act; and

(2) relates to the over-the-counter derivatives market in Australia in respect of one or more of the following commodities or products:

(a) electricity; or

(b) gas; or

(c) environmental products; or

(d) coal, oil, diesel or other form of fuel used in the generation of electricity by either:

(i) the provider of the designated service; or

(ii) the customer; or

(e) interest rate derivative products; or

(f) weather index or scale products relating to precipitation, temperature, wind, humidity or solar exposure; or

(g)  foreign exchange derivative products; or

(h) oil derivative products linked to gas supply contracts.

22.5 The exemption in paragraph 22.4 only applies if:

(1) the person who provides the designated service:

(a) is acting in the capacity of an agent of a person who is registered as a Registered Participant under the National Electricity Rules; or

(b) is acting in the capacity of an agent of a person who is a Generator who under Rule 2.9.3 of the National Electricity Rules is exempt from registration; or

(c) is acting in the capacity of an agent of a person who is registered as a Rule Participant under the Electricity System and Market Rules; or

(d) is acting in the capacity of an agent of a person who in a registrable capacity set out in Rule 135A, and is registered as a Registered Participant under Rule 135AE of the National Gas Rules; or

(e) is acting in the capacity of an agent of a person in a registrable capacity set out in Rule 135ABA, and is registered as a Registered Participant under Rule 135AE of the National Gas Rules; and

(f) one of the following applies:

(i) the person holds an Australian financial services licence that authorises that person to provide the designated service; or

(ii) the person is appointed as an authorised representative under section 916A of the Corporations Act 2001 to provide the designated service; or

(iii) the person is, by regulation made under section 134 of the Electricity Industry Act 2004 (WA), exempt from the requirement to hold an Australian financial services licence that authorises that person to provide the designated service; and

(2) the person who is the customer of the designated service:

(a) is registered as a Registered Participant under the National Electricity Rules; or

(b) is a Generator who under Rule 2.9.3 of the National Electricity Rules is exempt from registration; or

(c) is registered as a Rule Participant under the Electricity System and Market Rules; or

(d) in a registrable capacity set out in Rule 135A, is registered as a Registered Participant under Rule 135AE of the National Gas Rules; or

(e) in a registrable capacity set out in Rule 135ABA, is registered as a Registered Participant under Rule 135AE of the National Gas Rules; or

(f) is acting in the capacity of an agent of a person specified in subparagraphs 22.5(2)(a)-(e).

22.6 In this Chapter:

(2) ‘environmental products’ are transferable instruments created or recognised under Commonwealth, State or Territory laws which are intended to enhance environmental sustainability, reduce greenhouse gas emissions, increase the generation of electricity from renewable sources or encourage the efficient use of energy and including any emissions trading or other scheme;

(3) ‘National Electricity Rules’ refers to the Rules made pursuant to the National Electricity Law set out in the Schedule to the National Electricity (South Australia) Act 1996 (SA);

(4) ‘National Gas Rules’ refers to the Rules made pursuant to the National Gas Law set out in the Schedule to the National Gas (South Australia) Act 2008;

(5) ‘Electricity System and Market Rules’ refers to the market rules made under the Electricity Industry (Electricity System and Market) Regulations 2004 (WA).

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to OAIC or call 1300 363 992.

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

31.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 247(3) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

31.2 Subject to paragraph 31.3, the AML/CTF Act does not apply to the provision of a designated service of the kind described in item 50 of table 1 in subsection 6(2) of the AML/CTF Act.

31.3 The exemption in paragraph 31.2 applies only if:

(1) the designated service is provided in the course of carrying on a business that provides short‑term accommodation for travellers; and

(2) the customer of the designated service is a registered guest at the short‑term accommodation for travellers; and

(3) the currency exchanged must not exceed:

(a) $500 (Australian or the foreign equivalent) per registered guest per day; and

(b) $1,000 (Australian or the foreign equivalent) per room account per day; and

(4) any charge relating to the designated service that is imposed on the registered guest, is levied to the room account of the registered guest; and

(5) the provider of the designated service does not provide any other kind of designated services.

31.4 In this Chapter:

(1) ‘registered guest’ means an individual who engages sleeping accommodation at the short‑term accommodation for travellers, the period of which includes the time at which the designated service is provided.

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to http://www.oaic.gov.au or call 1300 363 992.

CHAPTER 39 Exemption from initial customer due diligence - premium funding loans for a general insurance policy

39.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 39(4) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

39.2 Section 28 of the AML/CTF Act does not apply to a designated service that:

(1) is of a kind described in item 6 of table 1 in subsection 6(2) of the AML/CTF Act and is a premium funding agreement; or

(2) is of a kind described in item 7 of table 1 in subsection 6(2) of the AML/CTF Act and is in relation to a loan that is a premium funding agreement.

39.3 In this Chapter:

(1) 'premium funding agreement' means an agreement under which—

(a)  a person agrees to make a loan to the customer to be applied
 

(i) against an amount payable for premiums under a policy of insurance that is not a life policy or sinking fund policy; or

1.                against an amount payable in connection with such a policy of general insurance (including, but not limited to, fees for advice or services provided in connection with such a policy and taxes payable in connection with such a policy); and

(b) the person obtains from the customer, as security for payment of the loan, one or more of the following:

(i)  an assignment of the customer’s interest in the policy;

1.                an assignment of all amounts payable under the policy;

1.             a power of attorney providing at least a right to cancel the policy.

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to http://www.oaic.gov.au or call 1300 363 992.

CHAPTER 42 Commodity warehousing of grain

42.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for subsection 247(3) of that Act.

42.2 The AML/CTF Act does not apply to a designated service that:

(1) is of a kind described in item 6 of table 1 in subsection 6(2) of the AML/CTF Act; and

(a) is provided to a customer who is a grain grower who delivers grain into a grain pool; and

(b) the maximum loan amount is determined by the value of the grain at the time the customer delivers it into the grain pool; and

(c) the loan amount does not exceed the value of the grain at the time the customer delivers it into the grain pool; and

(d) loan repayments made by the customer are met from the grain pool payments made from the grain pool to which the grain has been delivered; or

(2) is of a kind described in item 7 of table 1 in subsection 6(2) of the AML/CTF Act; and

(a) the transactions are conducted by the customer in relation to a loan that is covered by sub-paragraph 42.2(1).

42.3 In this Chapter:

(1) ‘grain’ means grains, oil seeds and pulses of all kinds, qualities and varieties including wheat, barley, oats, sorghum, maize and rice;

(2) ‘grain pool’ means a grouping of grain into a pool based on classification for the purposes of sale. After all of the grain in a pool from a particular harvest has been sold and all distributions have been paid, that pool ceases to exist.

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to http://www.oaic.gov.au or call 1300 363 992.

CHAPTER 43 Friendly Society closed funds

43.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 247(3) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

43.2 Subject to paragraph 43.3, the AML/CTF Act does not apply to a designated service that is of a kind described in:

(1) item 37 of table 1 in subsection 6(2); or

(2) item 38 of table 1 in subsection 6(2); or

(3) item 39 of table 1 in subsection 6(2).

43.3 The exemption in paragraph 43.2 applies if:

(1) the person providing the designated service is a friendly society; and

(2) the designated service is provided in relation to an approved benefit fund and the approved benefit fund rules state that the approved benefit fund:

(a) is closed to new members; and

(b) new policies cannot be written to the approved benefit fund.

43.4 In this Chapter:

(1) ‘approved benefit fund’ has the meaning given by section 16B of the Life Insurance Act 1995 (Cth);

(2) ‘approved benefit fund rules’ has the meaning given by section 16B of the Life Insurance Act 1995 (Cth);

(3) ‘friendly society’ has the meaning given by section 16C of the Life Insurance Act 1995 (Cth).

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to http://www.oaic.gov.au or call 1300 363 992.

CHAPTER 45 Debt Collection

45.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 247(4) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

45.2 For the purposes of subsection 247(4) of the AML/CTF Act, the following provisions of the AML/CTF Act do not apply to a designated service covered by item 6, 7 or 8 of table 1 in subsection 6(2) of the AML/CTF Act in circumstances where the service is provided by a person in the capacity of a debt collector:

 (1) Division 2 of Part 1A;

 (2) Divisions 2 to 4 of Part 2;

 (3) section 43;

 (4) section 111.

45.4 In this Chapter:

(1) ‘debt’ means an amount of money owed, including an alleged debt, where:

(a) the customer is in default under the terms and conditions of the account; or

(b) the customer is in default under the terms and conditions of the account and the provider of money (account provider) has declined the provision of further credit to the customer under the account; or

(c) the account provider has terminated, cancelled, written off or charged off debt, by reason of the customer's default or continuing default in repaying the money;

(2) ‘alleged debt’ means a debt where the debt collector has reasonable grounds for believing that the debt remains due, payable and owing by the debtor;

(3) ‘debt collector’ means a person who collects debt in the course of carrying on a business of collecting debt.

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to http://www.oaic.gov.au or call 1300 363 992.

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

47.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 247(3) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

47.2 Subject to paragraph 47.3, the AML/CTF Act does not apply to a designated service that:

(1) is of a kind described in item 42(a) of table 1 in subsection 6(2) of the               AML/CTF Act; or

(2) is of a kind described in item 43(a) of table 1 in subsection 6(2) of the               AML/CTF Act.

47.3 The exemption in paragraph 47.2 applies only if:

(1) the provision of the designated service relates to an actual or potential interest in, or entitlement under, a Risk-only life policy of a member of a superannuation fund (“Risk-only life policy interest”) (regardless of whether the member has any other interests, benefits, entitlements, balances or accounts in the superannuation fund) where the Risk-only life policy:

(a) has been acquired by the trustee of the superannuation fund from a life insurer on behalf of the member of the superannuation fund; and

(b) is held by the trustee of the superannuation fund as the policy holder; and

(2) the Risk-only life policy interest of the member referred to in subparagraph 47.3(1) does not include an investment component or an accumulated balance or account; and

(3) in respect to a designated service which falls within subparagraph 47.2(2) of these Rules, on the occurrence of an event specified in the Risk-only life policy, the trustee of the superannuation fund cashes out the whole or part of the Risk-only life policy interest referred to in subparagraph 47.3(1) in relation to that occurrence to the member of the superannuation fund (regardless of whether or not the trustee of the superannuation fund exercises its discretion to cash out other interests, benefits, entitlements, balances or accounts the member may have in the superannuation fund).

47.4 In this Chapter:

(1) ‘member’ has the same meaning as the customer of the designated service in items 42 or 43 (as applicable) of table 1 in subsection 6(2) of the AML/CTF Act;

(2) ‘Risk-only life policy’ is a life policy which falls outside the definition of ‘life policy’ in section 5 of the AML/CTF Act and, in particular, is a life policy in respect of which:

(a) a single lump sum amount is, or instalment amounts are, payable to the trustee of the superannuation fund as policy holder, on the occurrence of an event specified in the policy relating to the death or disability of the member of the superannuation fund, and

(b) there is no prescribed minimum surrender value (other than that which may be provided for in the policy documentation and promotional material) or no investment component.

For the purposes of this definition, the question of whether a policy has a prescribed minimum surrender value is to be determined in accordance with the prudential standards made under section 230A of the Life Insurance Act 1995 as in force from time to time.

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to http://www.oaic.gov.au or call 1300 363 992.

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

48.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules  (Rules) are made under section 229 for subsection 247(3) of the Anti-              Money Laundering and Counter-Terrorism Financing Act 2006               (AML/CTF Act).

48.2 Subject to paragraph 48.3, the AML/CTF Act does not apply to a designated               service that:

(1)  is of a kind described in item 6, 7 or 48 of table 1 in subsection 6(2) of the AML/CTF Act.

48.3 The exemption in paragraph 48.2 only applies if the reporting entity is carrying on a business of providing administrative services relevant to salary packaging for an employer client.

48.4  In this Chapter:

 (2) ‘salary packaging’ refers to an arrangement between an employer and an employee, whereby the employee agrees to forgo part of their future entitlement to salary or wages in return for the employer providing them with benefits of a similar cost.

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to http://www.oaic.gov.au or call 1300 363 992.

CHAPTER 49 International Uniform Give-Up Agreements

49.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 39(4) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

49.2 Section 28 of the AML/CTF Act does not apply to a designated service that:

(1) is of a kind described in item 33 of table 1 in subsection 6(2) of the AML/CTF Act; and

(2) is provided by the reporting entity to a customer in the circumstances specified in paragraph 49.3.

49.3  The specified circumstances for the purposes of paragraph 49.2 are that the reporting entity:

(1)  provides the designated service to the customer pursuant to the terms and conditions of an International Uniform Give-Up Agreement;

(2)  is admitted as a Participant under the Operating Rules of a Licensed Market;

(3)  does not receive, hold or transfer money or property of the customer (other than applicable fees to the reporting entity) in connection with the provision of the designated service; and

(4)  the person to whom the reporting entity refers a transaction or transactions for clearing under the International Uniform Give-Up Agreement is:

(a)  admitted as a Participant under the Operating Rules of a Licensed CS facility; or

(b)  regulated by anti-money laundering and counter-terrorism financing laws in, or comparable to, those in Australia.

49.4  In this Chapter:

(1) ‘Participant’ has the same meaning as in the Corporations Act 2001;

(2) ‘Licensed Market’ has the same meaning as in the Corporations Act 2001;

(3) ‘Licensed CS facility’ has the same meaning as in the Corporations Act 2001;

(4) ‘International Uniform Give-Up Agreement’ means a contract based on the terms and conditions in the template agreement developed by the US Futures Industry Association (FIA), the Futures and Options Association (FOA) and the London International Financial Futures and Options Exchange (LIFFE) pursuant to which a person (the customer) instructs the reporting entity to execute an order or orders, but settlement or clearance of which is or are conducted by another entity to whom the reporting entity ‘gives up’ or otherwise refers the order or orders.

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to http://www.oaic.gov.au or call 1300 363 992.

CHAPTER 67 Warrants

67.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 39(4) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

67.2 Section 28 of the AML/CTF Act does not apply to a warrant issuer providing a designated service in relation to a warrant that is of a kind described in item 46 of table 1 in subsection 6(2) of the AML/CTF Act in the circumstances specified in subparagraph 67.7(1).

67.3 Section 28 of the AML/CTF Act does not apply to a warrant issuer providing a designated service in relation to a warrant that is of a kind described in item 46 of table 1 in subsection 6(2) of the AML/CTF Act in the circumstances specified in subparagraph 67.7(2).

67.4 Section 28 of the AML/CTF Act does not apply to a warrant issuer providing a designated service in relation to a warrant that:

(1) is of a kind described in item 35 of table 1 in subsection 6(2) of the AML/CTF Act; or

(2) is of a kind described in item 46 of table 1 in subsection 6(2) of the AML/CTF Act

in the circumstances specified in subparagraph 67.7(3).

67.5 Section 28 of the AML/CTF Act does not apply to a warrant issuer providing a designated service that relates to a warrant that is of a kind described in item 46 of table 1 in subsection 6(2) of the AML/CTF Act in the circumstances specified in subparagraph 67.7(4).

67.6  Section 28 of the AML/CTF Act does not apply to a warrant issuer providing a designated service that relates to a warrant that:

1.                is of a kind described in item 35 of table 1 in subsection 6(2) of the AML/CTF Act; or
2.                is of a kind described in item 46 of table 1 in subsection 6(2) of the AML/CTF Act;

in the circumstances specified in subparagraph 67.7(5).

67.7 The specified circumstances for the purposes of paragraphs 67.2, 67.3, 67.4, 67.5 and 67.6 are that the designated service is provided by a warrant issuer in relation to a warrant; and

(1) a customer acquires a warrant on-market or off-market through the completion of a transfer; or

(2) after the circumstances in subparagraph 67.7(1) occur, as a result of a corporate action in relation to the underlying asset, the warrant issuer sells the underlying asset; or

(3) after the circumstances in subparagraph 67.7(1) occur, as a result of a corporate action in relation to the underlying asset, the warrant issuer issues a new warrant to the warrant holder; or

(4)  after the circumstances in subparagraph 67.7(1) occur, the service is provided as a result of the roll-over or re-set of a warrant, when the warrant issuer sells the underlying asset; or

(5)  after the circumstances in subparagraph 67.7(1) occur, the service is provided as a result of the expiry of a warrant, when the warrant issuer issues a new warrant to the warrant holder.

67.8 In this Chapter:

(1) ‘corporate action’ includes an assignment, conveyance, sale, or transfer of the whole or part of a business in relation to the underlying asset;

(2) ‘off-market’ means where customers purchase warrants on their own behalf, rather than from warrant issuers, outside a declared financial market;

(3) ‘declared financial market’ has the meaning given by section 9 of the Corporations Act 2001;

(4) ‘warrant’ has the meaning set out in Regulation 1.0.02 of the Corporations Regulations 2001, when issued by a bank, government or other institution;

(5) ‘warrant holder’ means the customer of the warrant issuer;

(6) ‘warrant issuer’ means a person approved by a declared financial market to issue warrants.

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to http://www.oaic.gov.au or call 1300 363 992.

Notes to the Anti-Money Laundering and Counter-Terrorism Financing (Class Exemptions and Other Matters) Rules 2007

Note 1

The Anti-Money Laundering and Counter-Terrorism Financing (Class Exemptions and Other Matters) Rules 2007 (in force under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006) as shown in this compilation is amended as indicated in the Tables below.

Table of Instruments

Table of Amendments