• AML/CTF Rules - Australia - Definitions

Definitions

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

1.2.1 In these Rules: accredited translator means:

(1) a person currently accredited by the National Accreditation Authority for Translators and Interpreters Ltd. (NAATI) at the level of Professional Translator, or above, to translate from a language other than English into English; or

(2) a person who currently holds an accreditation that is consistent with the standard specified in (1). the AML/CTF Act means the Anti Money Laundering and Counter Terrorism Financing Act 2006.

AML/CTF program means an anti money laundering and counter terrorism financing program as defined in section 83 of the AML/CTF Act.

Australian Government Entity means:

(1) the Commonwealth, a State or a Territory; or

(2) an agency or authority of:

(a) the Commonwealth; or

(b) a State; or

(c) a local governing body established by or under a law of the Commonwealth, a State or Territory, other than a body whose sole or principal function is to provide a particular service, such as the supply of electricity or water; beneficial owner: (1) of a person who is a reporting entity, means an individual who owns or controls (directly or indirectly) the reporting entity;

(2) of a person who is a customer of a reporting entity, means an individual who ultimately owns or controls (directly or indirectly) the customer;

(3) In this definition: control includes control as a result of, or by means of, trusts, agreements, arrangements, understandings and practices, whether or not having legal or equitable force and whether or not based on legal or equitable rights, and includes exercising control through the capacity to determine decisions about financial and operating policies; and (4) In this definition: owns means ownership (either directly or indirectly) of 25% or more of a person.

Note: The definition ‘control test’ does not apply to this definition. certified copy means a document that has been certified as a true copy of an original document by one of the following persons:

(1) a person who, under a law in force in a State or Territory, is currently licensed or registered to practise in an occupation listed in Part 1 of Schedule 2 of the Statutory Declarations Regulations 1993;

(2) a person who is enrolled on the roll of the Supreme Court of a State or Territory, or the High Court of Australia, as a legal practitioner (however described);

(3) a person listed in Part 2 of Schedule 2 of the Statutory Declarations Regulations 1993. For the purposes of these Rules, where Part 2 uses the term ‘5 or more years of continuous service’, this should be read as ‘2 or more years of continuous service’;

(4) an officer with, or authorised representative of, a holder of an Australian financial services licence, having 2 or more years of continuous service with one or more licensees;

(5) an officer with, or a credit representative of, a holder of an Australian credit licence, having 2 or more years of continuous service with one or more licensees; (6) a person authorised as a notary public in a foreign country.

Note: The Statutory Declarations Regulations 1993 are accessible through the Commonwealth of Australia law website, www.comlaw.gov.au certified extract means an extract that has been certified as a true copy of some of the information contained in a complete original document, by one of the persons described in paragraphs (1)-(6) of the definition of ‘certified copy’ in paragraph 1.2.1 of these Rules. correspondent banking risk means the money laundering or terrorism financing risk a financial institution may reasonably face in respect of a correspondent banking relationship. domestic company means a company that is registered under the Corporations Act 2001 (other than a registered foreign company). domestic listed public company means a domestic company that is a listed public company. domestic stock exchange means a financial market prescribed by regulations made for the purposes of the definition of ‘prescribed financial market’ in the Corporations Act 2001. domestic unlisted public company means a domestic company that is not a listed public company. foreign company means a body corporate of the kind described in paragraph (a) of the definition of ‘foreign company’ in the Corporations Act 2001. foreign listed public company means a foreign company that is a listed public company.

KYC information means ‘know your customer information’ and may include information in relation to matters such as:

(1) In relation to a customer who is an individual:

(a) the customer’s name;

(b) the customer’s residential address;

(c) the customer’s date of birth;

(d) any other name that the customer is known by;

(e) the customer’s country(ies) of citizenship;

(f) the customer’s country(ies) of residence;

(g) the customer’s occupation or business activities;

(h) the nature of the customer’s business with the reporting entity – including:

(i) the purpose of specific transactions; or

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

(i) the income or assets available to the customer;

(j) the customer’s source of funds including the origin of funds;

(k) the customer’s financial position;

(l) the beneficial ownership of the funds used by the customer with respect to the designated services; and

(m) the beneficiaries of the transactions being facilitated by the reporting entity on behalf of the customer including the destination of funds.

(2) In relation to a customer who is a company:

(a) the full name of the company as registered by ASIC;

(b) the full address of the company’s registered office;

(c) the full address of the company’s principal place of business (if any);

(d) the ACN issued to the company;

(e) whether the company is registered by ASIC as a proprietary company or a public company;

(f) the name of each director of the company;

(g) the full business name (if any) of the company as registered under any State or Territory business names legislation;

(h) the date upon which the company was registered by ASIC;

(i) the name of any company secretary;

(j) the nature of the business activities conducted by the company;

(k) (without limiting the possible application of other items in this definition to a registered foreign company) if the company is a registered foreign company:

(i) the full address of the company’s registered office in Australia;

(ii) the full address of the company’s principal place of business in Australia (if any) or the full name and address of the company’s local agent in Australia;

(iii) the ARBN issued to the company;

(iv) the country in which the company was formed, incorporated or registered;

(v) whether the company is registered by the relevant foreign registration body and if so whether it is registered as a proprietary or private company; (vi) the name of the relevant foreign registration body;

(vii) any identification number issued to the company by the relevant foreign registration body upon the company’s formation, incorporation or registration;

(viii) the date upon which the company was formed, incorporated or registered in its country of formation, incorporation or registration;

(ix) the full address of the company in its country of formation, incorporation or registration as registered by the relevant foreign registration body;

(l) (without limiting the possible application of other items in this definition to an unregistered foreign company) if the company is an unregistered foreign company:

(i) the full name of the company;

(ii) the country in which the company was formed, incorporated or registered;

(iii) whether the company is registered by the relevant foreign registration body and if so:

(A) any identification number issued to the company by the relevant foreign registration body upon the company’s formation, incorporation or registration;

(B) the full address of the company in its country of formation, incorporation or registration as registered by the relevant foreign registration body; and

(C) whether it is registered as a proprietary or private company;

(iv) the full address of the company’s principal place of business in that country;

(v) the name of the relevant foreign registration body;

(vi) the date upon which the company was formed, incorporated or registered in its country of formation, incorporation or registration;

(vii) the full address of the company’s principal place of business in that country; and

(m) the name and address of any beneficial owner of the company.

(3) In relation to a customer who is a trustee of a trust:

(a) the full name of the trust;

(b) the full business name (if any) of the trustee in respect of the trust;

(c) the type of the trust;

(d) the country in which the trust was established;

(e) if any of the trustees is an individual – in respect of any of those individuals, the information required to be collected from an individual under the reporting entity’s customer identification program in respect of individuals;

(f) if any of the trustees is a company – in respect of any those companies, the information required to be collected from a company under the reporting entity’s customer identification program in respect of companies;

(g) the full name and address of any trustee in respect of the trust;

(h) the full name of any beneficiary in respect of the trust;

(i) if the terms of the trust identify the beneficiaries by reference to membership of a class – details of the class;

(j) the State or Territory in which the trust was established;

(k) the date upon which the trust was established;

(l) a certified copy or certified extract of the trust deed; and

(m) the full name of the trust manager (if any) or settlor (if any) in respect of the trust.

(4) In relation to a customer who is a partner of a partnership:

(a) the full name of the partnership;

(b) the full business name (if any) of the partnership as registered under any State or Territory business names legislation;

(c) the country in which the partnership was established;

(d) in respect of any partner the information required to be collected from an individual under the reporting entity’s customer identification program in respect of individuals;

(e) the full name and residential address of any partner;

(f) the respective share of each partner in the partnership;

(g) the business of the partnership;

(h) the State or Territory in which the partnership was established;

(i) the date upon which the partnership was established; and

(j) a certified copy or certified extract of the partnership agreement.

(5) In relation to a customer who is an incorporated association:

(a) the full name of the association; (b) the full address of the association’s principal place of administration or registered office (if any) or the residential address of the association’s public officer or (if there is no such person) the association’s president, secretary or treasurer; (c) any unique identifying number issued to the association upon its incorporation by the relevant registration body; (d) the full name of the chairman, secretary and treasurer or equivalent officer in each case of the association; (e) the State, Territory or country in which the association was incorporated; (f) the date upon which the association was incorporated; (g) the objects of the association; (h) a certified copy or certified extract of the rules of the association; (i) in respect of any member – the information required to be collected from an individual under the reporting entity’s customer identification program in respect of individuals; and (j) the full business name, if any, of the association. (6) In relation to a customer who is an unincorporated association: (a) the full name of the association; (b) the full address of the association’s principal place of administration (if any); (c) the full name of the chairman, secretary and treasurer or equivalent officer in each case of the association; (d) in respect of any member – the information required to be collected from an individual under the reporting entity’s customer identification program in respect of individuals; (e) the objects of the association; (f) a certified copy or certified extract of the rules of the association; and (g) the full business name, if any, of the association. (7) In relation to a customer who is a registered co operative: (a) the full name of the co operative; (b) the full address of the co operative’s registered office or principal place of operations (if any) or the residential address of the co operative’s secretary or (if there is no such person) the co operative’s president or treasurer; (c) any unique identifying number issued to the co operative upon its registration by the relevant registration body; (d) the full name of the chairman, secretary and treasurer or equivalent officer in each case of the co operative; (e) in respect of any member – the information required to be collected from an individual under the reporting entity’s customer identification program in respect of individuals; (f) the full business name, if any, of the co operative; (g) the State, Territory or country in which the co operative is registered; (h) the date upon which the co operative was registered; (i) the objects of the co operative; and (j) a certified copy or certified extract of the rules of the co operative. (8) In relation to a customer who is a government body: (a) the full name of the government body; (b) the full address of the government body’s principal place of operations; (c) whether the government body is an entity or emanation, or established under legislation, of a State, Territory, the Commonwealth or a foreign country and the name of that State, Territory or country; (d) information about the ownership or control of a government body that is an entity or emanation or established under legislation of a foreign country; and (e) the name of any legislation under which the government body was established. listed public company means: (1) in the case of a domestic company – a public company that is included in an official list of a domestic stock exchange; (2) in the case of a registered foreign company – (a) a public company that is included in an official list of a domestic stock exchange; or (b) a public company whose shares, in whole or in part, are listed for quotation in the official list of any stock or equivalent exchange; (3) in the case of an unregistered foreign company – a public company whose shares, in whole or in part, are listed for quotation in the official list of any stock or equivalent exchange. ML/TF risk means the risk that a reporting entity may reasonably face that the provision by the reporting entity of designated services might (whether inadvertently or otherwise) involve or facilitate money laundering or the financing of terrorism. Part A means Part A of a reporting entity’s AML/CTF program. Part B means Part B of a reporting entity’s AML/CTF program. on course bookmaker means a person who carries on a business of a bookmaker or a turf commission agent at a racecourse. online gambling service means a designated service of a kind described in table 3 of section 6 of the AML/CTF Act that is provided to a customer using any of the means referred to in paragraph 5(1)(b) of the Interactive Gambling Act 2001 and includes an excluded wagering service as defined in section 8A of the Interactive Gambling Act 2001 but does not include a “telephone betting service” as defined in section 4 of the Interactive Gambling Act 2001. politically exposed person means an individual: (1) who holds a prominent public position or function in a government body or an international organisation, including: (a) Head of State or head of a country or government; or (b) government minister or equivalent senior politician; or (c) senior government official; or (d) Judge of the High Court of Australia, the Federal Court of Australia or a Supreme Court of a State or Territory, or a Judge of a court of equivalent seniority in a foreign country or international organisation; or (e) governor of a central bank or any other position that has comparable influence to the Governor of the Reserve Bank of Australia; or (f) senior foreign representative, ambassador, or high commissioner; or (g) high-ranking member of the armed forces; or (h) board chair, chief executive, or chief financial officer of, or any other position that has comparable influence in, any State enterprise or international organisation; and (2) who is an immediate family member of a person referred to in paragraph (1), including: (a) a spouse; or (b) a de facto partner; or (c) a child and a child’s spouse or de facto partner; or (d) a parent; and (3) who is a close associate of a person referred to in paragraph (1), which means any individual who is known (having regard to information that is public or readily available) to have: (a) joint beneficial ownership of a legal entity or legal arrangement with a person referred to in paragraph (1); or (b) sole beneficial ownership of a legal entity or legal arrangement that is known to exist for the benefit of a person described in paragraph (1). (4) In these Rules: (a) domestic politically exposed person means a politically exposed person of an Australian government body; (b) foreign politically exposed person means a politically exposed person of a government body of a foreign country; (c) international organisation politically exposed person means a politically exposed person of an international organisation. (5) In this definition international organisation means an organisation: (a) established by formal political agreement by two or more countries and that agreement has the status of an international treaty; and (b) recognised in the law of the countries which are members of the organisation. Note: The term de facto partner is defined in the Acts Interpretation Act 1901 and the terms ‘foreign country’ and ‘government body’ are defined in the AML/CTF Act. primary non photographic identification document means any of the following: (1) a birth certificate or birth extract issued by a State or Territory; (2) a citizenship certificate issued by the Commonwealth; (3) a citizenship certificate issued by a foreign government that, if it is written in a language that is not understood by the person carrying out the verification, is accompanied by an English translation prepared by an accredited translator; (4) a birth certificate issued by a foreign government, the United Nations or an agency of the United Nations that, if it is written in a language that is not understood by the person carrying out the verification, is accompanied by an English translation prepared by an accredited translator; (5) a concession card, as defined from time to time in the Social Security Act 1991, or an equivalent term which expresses the same concept in relation to concession holders. primary photographic identification document means any of the following: (1) a licence or permit issued under a law of a State or Territory or equivalent authority of a foreign country for the purpose of driving a vehicle that contains a photograph of the person in whose name the document is issued; (2) a passport issued by the Commonwealth; (3) a passport or a similar document issued for the purpose of international travel, that: (a) contains a photograph and the signature of the person in whose name the document is issued; (b) is issued by a foreign government, the United Nations or an agency of the United Nations; and (c) if it is written in a language that is not understood by the person carrying out the verification is accompanied by an English translation prepared by an accredited translator. (4) a card issued under a law of a State or Territory for the purpose of proving the person’s age which contains a photograph of the person in whose name the document is issued. (5) a national identity card issued for the purpose of identification, that: (a) contains a photograph and the signature of the person in whose name the document is issued; (b) is issued by a foreign government, the United Nations or an agency of the United Nations; and (c) if it is written in a language that is not understood by the person carrying out the verification is accompanied by an English translation prepared by an accredited translator; public company means a company other than a proprietary company. racecourse means a place where a race meeting is held by a racing club, and includes adjacent land or premises to which persons attending the meeting have access in connection with the meeting. reasonable measures means appropriate measures which are commensurate with the money laundering or terrorist financing risks. registered co operative means a body registered under legislation as a co operative. registered foreign company means a foreign company that is registered under Division 2 of Part 5B.2 of the Corporations Act 2001. relevant foreign registration body means, in respect of a registered foreign company or an unregistered foreign company, any government body that was responsible for the formation, incorporation or registration of that company in its country of formation, incorporation or registration. reliable and independent documentation includes but is not limited to: (1) an original primary photographic identification document; (2) an original primary non photographic identification document; and (3) an original secondary identification document Note This is not an exhaustive definition. A reporting entity may rely upon other documents not listed in paragraphs (1) to (3) above as reliable and independent documents, where that is appropriate having regard to ML/TF risk. secondary identification document means any of the following: (1) a notice that: (a) was issued to an individual by the Commonwealth, a State or Territory within the preceding twelve months; (b) contains the name of the individual and his or her residential address; and (c) records the provision of financial benefits to the individual under a law of the Commonwealth, State or Territory (as the case may be); (2) a notice that: (a) was issued to an individual by the Australian Taxation Office within the preceding 12 months; (b) contains the name of the individual and his or her residential address; and (c) records a debt payable to or by the individual by or to (respectively) the Commonwealth under a Commonwealth law relating to taxation; (3) a notice that: (a) was issued to an individual by a local government body or utilities provider within the preceding three months; (b) contains the name of the individual and his or her residential address; and (c) records the provision of services by that local government body or utilities provider to that address or to that person. (4) In relation to a person under the age of 18, a notice that: (a) was issued to a person by a school principal within the preceding three months; (b) contains the name of the person and his or her residential address; and (c) records the period of time that the person attended at the school. senior managing official means an individual who makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of a customer of a reporting entity or who has the capacity to affect significantly the financial standing of a customer of a reporting entity. totalisator agency board means a board or authority established, or a company holding a licence, under a law of a State or Territory for purposes that include the purpose of operating a betting service. unregistered foreign company means a foreign company that is not a registered foreign company. 1.2.2 In these Rules, the terms ‘ABN’, ‘ACN’, ‘ARBN’, ‘Australian financial services licence’, ‘ASIC’, ‘managed investment scheme’, ‘proprietary company’, ‘registered office’ and ‘wholesale client’ have the same respective meanings as in the Corporations Act 2001. 1.2.3 In these Rules, the terms ‘Australian credit licence’ and ‘credit representative’ have the same respective meanings as in the National Consumer Credit Protection Act 2009.

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act.

Chapter 2 – Designated Business Groups

Part 2.1 Definition of ‘designated business group’

2.1.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made pursuant to section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for the purposes of the definition of ‘designated business group’ in section 5 of the AML/CTF Act.

2.1.2 For the purposes of the definition of ‘designated business group’ in section 5 of the AML/CTF Act:

(1) an election will be made in accordance with the AML/CTF Rules if it is made on the approved election form and provided to AUSTRAC by the Nominated Contact Officer;

(2) a ‘designated business group’ is established when the approved form is provided to the AUSTRAC CEO by the Nominated Contact Officer or on such later date as is specified on that form; and

(3) the members of a designated business group must, by their Nominated Contact Officer, notify the AUSTRAC CEO, in writing, in the approved form, of any of the following:

(a) a withdrawal of a member from the designated business group; or

(b) an election of a new member; or

(c) the termination of the designated business group; or

(d) any other change in the details previously notified to the AUSTRAC CEO in respect of the Nominated Contact Officer or the designated business group; no later than 14 business days from the date on which the withdrawal, election of the new member, termination or change takes effect.

(4) each member of the designated business group must be:

(a) related to each other member of the group within the meaning of section 50 of the Corporations Act 2001; and either

(i) a reporting entity; or

(ii) a company in a foreign country which if it were resident in Australia would be a reporting entity; or

(b) providing a designated service pursuant to a joint venture agreement, to which each member of the group is a party; or

(c) able to satisfy the following conditions: be

(i) an accounting practice; or

(ii) a person, other than an individual, which the accounting practice in (i) controls; or

(iii) an accounting practice which is providing a designated service pursuant to a joint venture agreement, to which each member of the group is a party; or

(iv) a person that provides or assists in the provision of a designated service to the customers of the accounting practice; and either:

(v) a reporting entity; or

(vi) an entity in a foreign country which, if it were resident in Australia would be a reporting entity; or

(d) able to satisfy the following conditions: be

(i) a law practice; or

(ii) a person, other than an individual, which the law practice in (i) controls; or

(iii) a law practice which is providing a designated service pursuant to a joint venture agreement, to which each member of the group is a party; or

(iv) a person that provides or assists in the provision of a designated service to the customers of the law practice; and either:

(v) a reporting entity; or (vi) an entity in a foreign country which, if it were resident in Australia would be a reporting entity; or

(e) Subject to the requirements in paragraph

2.1.2A, be a reporting entity that provides a registrable designated remittance service, either:

(i) as a money transfer service provider; or

(ii) as a representative of a money transfer service provider pursuant to a representation agreement with a money transfer service provider; or

(iii) as a sub-representative of a money transfer service provider pursuant to a sub-representation agreement with the representative of the money transfer service provider.

2.1.2A The following conditions apply to a reporting entity that elects to form or vary a designated business group with other reporting entities pursuant to subparagraph 2.1.2(4)(e):

(1) a person who meets the criteria specified at subparagraph 2.1.2(4)(e)(i) may form or vary a designated business group with one of the following:

(a) a person or persons with whom they have a representation agreement; or

(b) (i) a person with whom they have a representation agreement; and

(ii) a person or persons with whom the person described at subparagraph 2.1.2A(1)(b)(i) has a sub-representation agreement.

(2) a person who meets the criteria specified at subparagraph 2.1.2(4)(e)(ii) may form or vary a designated business group with one of the following:

(a) the person with whom they have a representation agreement; or

(b) (i) the person with whom they have a representation agreement; and (ii) a person or persons who have a representation agreement with the person described at subparagraph 2.1.2A(2)(b)(i); or

(c) (i) a person or persons who meet the conditions specified at subparagraph 2.1.2(4)(e)(iii); and

(ii) with whom they have a sub-representation agreement; or

(d) (i) the person with whom they have a representation agreement; and

(ii) (A) a person or persons who meet the conditions specified at subparagraph 2.1.2(4)(e)(iii); and (B) with whom they have a sub-representation agreement.

(3) a person who meets the conditions specified at subparagraph 2.1.2(4)(e)(iii) may form or vary a designated business group with one of the following:

(a) the person with whom they have a sub-representation agreement; or

(b) (i) the person with whom they have a sub-representation agreement; and

(ii) a person or persons who have a sub-representation agreement with the same person described at subparagraph 2.1.2A(3)(a); or

(c) (i) the person with whom they have a sub-representation agreement; and

(ii) the person with whom the person described at subparagraph 2.1.2A(3)(c)(i) has a representation agreement; or

(d) (i) the person with whom they have a sub-representation agreement; and

(ii) the person with whom the person described at subparagraph 2.1.2A(3)(d)(i) has a representation agreement; and

(iii) a person or persons who have a sub-representation agreement with the same person described at subparagraph 2.1.2A(3)(d)(i).

2.1.3 In this Chapter:

(1) ‘approved election form’ means Form 1 attached to these Rules;

(2) ‘approved form’ for the purposes of sub-rule 2.1.2(2) means Form 2 attached to these Rules;

(3) ‘approved form’ for the purposes of sub-rule 2.1.2(3) means Form 3 attached to these Rules;

(4) ‘company’ has the same meaning as in the Corporations Act 2001;

(5) ‘Nominated Contact Officer’ means the holder from time to time of one of the following positions: (a) an ‘officer’ as defined in the Corporations Act 2001, of a member of a designated business group; or (b) the AML/CTF Compliance Officer of a member of a designated business group, where that officer or compliance officer has been appointed by the designated business group to hold the position of the Nominated Contact Officer;

(6) ‘accounting practice’ means a business carried on by either of the following:

(a) an accountant (however described) that supplies professional accounting services; or

(b) a partnership or company that uses accountants (however described) to supply professional accounting services;

(7) ‘law practice’ means a business carried on by either of the following:

(a) a legal practitioner (however described) that supplies professional legal services; or

(b) a partnership or company that uses legal practitioners (however described) to supply professional legal services;

(8) ‘money transfer service’ means a service, provided under a single brand, trademark or business name through which registrable designated remittance services are carried out;

(9) ‘money transfer service provider’ means a person who under a representation agreement authorises a representative to offer the money transfer service on behalf of the money transfer service provider and to engage sub-representatives for the purposes of providing the money transfer service in Australia;

(10) ‘representation agreement’ means the written agreement between a money transfer service provider and a representative of the money transfer service provider that states the terms on which the representative offers the money transfer service within Australia;

(11) ‘representative of a money transfer service provider’ or ‘representative’ means a person who offers a money transfer service in accordance with a representation agreement with the money transfer service provider;

(12) ‘sub-representation agreement’ means the written agreement between a representative of a money transfer service provider and a sub-representative of a money transfer service provider that states the terms on which the sub-representative provides the money transfer service within Australia;

(13) ‘sub-representative of a money transfer service provider’ or ‘sub-representative’ means a person who is engaged by a representative of a money transfer service provider to provide a money transfer service in accordance with a sub-representation agreement.

Chapter 3 – Correspondent Banking Due Diligence

Anti-Money Laundering and Counter-Terrorism Financing Rules in Respect of Paragraph (e) of the Definition of ‘Correspondent Banking Relationship’ in Section 5 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006

3.2.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made pursuant to section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for the purposes of paragraph (e) of the definition of ‘correspondent banking relationship’ in section 5 of the AML/CTF Act.

3.2.2 For the purposes of paragraph (e) of the definition of correspondent banking relationship in section 5 of the AML/CTF Act, all banking services that do not involve nostro or vostro accounts are specified.

Chapter 13 – Approved third party bill payment

Approved 3rd Party Bill Payment – For the definition of ‘approved third party bill payment system’ in section 5 of the AML/CTF Act, the following bill payment systems are prescribed:

(1) BPAY;

(2) DEFT; and

(3) The Australian Payments Clearing Association Limited’s direct entry system.

Chapter 40 – Exempt legal practitioner service

These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for the definition of ‘exempt legal practitioner service’ in section 5 of that Act. 40.2 A service is taken to be an ‘exempt legal practitioner service’ if:

(1) it is provided in the ordinary course of carrying on a law practice and is a custodial or depository service other than conduct that under section 766E(1) of the Corporations Act 2001 constitutes providing a custodial or depository service; or

(2) it is provided in the ordinary course of carrying on a law practice and is a safe deposit box or similar facility other than in relation to physical currency.

In this Chapter: ‘law practice’ means a business carried out by either of the following:

(1) a legal practitioner (however described) that supplies professional legal services; or

(2) a partnership or company that uses legal practitioners (however described) to supply professional legal services.

Chapter 51 – AML/CTF Rules relating to certain definitions under the AML/CTF Act – Ordering and Beneficiary Institutions, Financial Institutions and Non-Financiers

51.1.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for the definition of ‘financial institution’ in section 5 of the AML/CTF Act under paragraph (e), the definition of ‘non-financier’ in section 5 of the AML/CTF Act under paragraph (e), the definition of ‘ordering institution’ and ‘beneficiary institution’ in subparagraphs 8(1)(c)(v), 8(1)(d)(v), 8(2)(c)(v), 9(1)(c)(v), 9(1)(d)(v) and 9(2)(c)(v) of the AML/CTF Act and the conditions under paragraph 45(1)(c) of that Act.

Part 51.2 KEB Australia Limited and Travelex GBP Australia Pty Limited

51.2.1 For the purposes of subparagraph (e) of the definition of ‘financial institution’ in section 5 of the AML/CTF Act, the following persons are specified, subject to the applicable conditions in paragraph 51.2.4: (1) KEB Australia Limited ABN 11 003 095 181 of Suite 902, 2 Chifley Square, Sydney, NSW, 2000; and (2) Travelex GBP Australia Pty Limited ABN 24 150 129 749 of Level 12, 1 Margaret Street, Sydney, NSW, 2000.

51.2.2 For the purposes of subparagraph (e) of the definition of ‘non-financier’ in section 5 of the AML/CTF Act, the following persons are specified, subject to the applicable conditions in paragraph 51.2.4: (1) KEB Australia Limited ABN 11 003 095 181 of Suite 902, 2 Chifley Square, Sydney, NSW, 2000; and (2) Travelex GBP Australia Pty Limited ABN 24 150 129 749 of Level 12, 1 Margaret Street, Sydney, NSW, 2000.

51.2.3 For the purposes of subparagraphs 8(1)(c)(v), 8(1)(d)(v), 8(2)(c)(v), 9(1)(c)(v), 9(1)(d)(v) and 9(2)(c)(v), the following persons are specified, subject to the applicable conditions in paragraph 51.2.4: (1) KEB Australia Limited ABN 11 003 095 181 of Suite 902, 2 Chifley Square, Sydney, NSW, 2000; and (2) Travelex GBP Australia Pty Limited ABN 24 150 129 749 of Level 12, 1 Margaret Street, Sydney, NSW, 2000.

51.2.4 For the purposes of paragraphs 51.2.1 – 51.2.3, the following conditions are specified in relation to international funds transfer instructions covered by item 1 or 2 of the table in section 46:

(1) the person uses a proprietary system to send or receive the international funds transfer instruction; and

(2) the person is licensed under the Corporations Act 2001 to deal in a foreign exchange contract; and

(3) the person is not acting in the capacity of an agent of a non-financier; and either of the following two additional conditions is also met:

(4) the person is a wholly owned or majority owned subsidiary of an ADI, bank, building society or credit union; or

(5) the person is part of a member-administered closed user group.

Part 51.3 PayPal Pte Ltd. and PayPal Inc.

51.3.1 For the purposes of subparagraphs 8(1)(c)(v), 8(1)(d)(v), 8(2)(c)(v), 9(1)(c)(v), 9(1)(d)(v) and 9(2)(c)(v), the following persons are specified:

(1) PayPal Pte Ltd. 200509725E (PayPal Singapore) 09-01 Suntec Tower 5, 5 Temasek Boulevard, Singapore 038985; and

(2) PayPal Inc. 770510487 (PayPal USA) 2211 North First Street San Jose, California 95131. 51.4

In this Chapter:

(1) ‘foreign exchange contract’ has the same meaning as in the Corporations Act 2001;

(2) ‘member-administered closed user group’ means a SWIFT operated, SWIFT member administered service that enables the members of the closed user group to exchange SWIFT financial messages and file services with other members of the group;

(3) ‘proprietary system’ includes the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

(c) Financial Crimes Consulting Pty Ltd (Trading as Arctic Intelligence) | ACN: 149 878 875 | All rights reserved