Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p116
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 324809–327823

an individual;

           (14) 'subsidiary' has the same meaning as in the Corporations Act 2001;

           (15) 'terrorism' means conduct that amounts to:

               (a) an offence against Division 101 or 102 of the Criminal Code; or

               (b) an offence against a law of a State or Territory that corresponds to an offence referred to in paragraph (a); or

               (c) an offence against a law of a foreign country or of a part of a foreign country that corresponds to an offence referred to in paragraph (a).

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 28 Applicable customer identification procedures in certain circumstances – assignment, conveyance, sale or transfer of businesses

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

     28.2 Subject to paragraphs 28.4 and 28.5, Division 4 of Part 2 of the AML/CTF Act does not apply to a designated service that is provided in the circumstances specified in paragraph 28.3.

     28.3  The specified circumstances for the purposes of paragraph 28.2 are that:

          (1) either:

             (a) reporting entity one has assigned, conveyed, sold or transferred the whole or a part of its business to reporting entity two, excluding a compulsory transfer of business which takes effect under Part 4 of the Financial Sector (Business Transfer and Group Restructure) Act 1999 (FSA); or

             (b) all or part of the assets and liabilities of reporting entity one have become the assets and liabilities of reporting entity two as a result of a transfer effected pursuant to a certificate of transfer issued by the Australian Prudential Regulation Authority (APRA) under section 18 of the FSA; and

          (2) the designated service is provided to a transferring customer; and

          (3) prior to the assignment, conveyance, sale or transfer, or all or part of the assets and liabilities of reporting entity one becoming the assets and liabilities of reporting entity two, reporting entity two has reasonably determined:

             (a) the ML/TF risk it faces in providing the designated service to the transferring customers as a group; and

             (b) that it has in place appropriate risk-based systems and controls to identify, manage and mitigate the ML/TF risk it faces in providing the designated service to the transferring customers as a group; and

             (c) based on the assessed ML/TF risk and its risk-based systems and controls,