Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p189
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 523109–526213

a pre-commencement customer of reporting entity one as if the customer was a pre-commencement customer of reporting entity two.

      66.4 The exemption provided to reporting entity two by paragraph 66.2 will end 60 days after the compulsory transfer of business was effected, unless, prior to that time reporting entity two has concluded the examination required by subparagraph 66.3(4) and has determined in the affirmative the assessments required by subparagraphs 66.3(4)(b) and 66.3(4)(c).

      66.5               Reporting entity two must, within 14 days after any of the circumstances specified in paragraph 66.6 come into existence, take one or more of the actions specified below:

           (1) carry out the applicable customer identification procedure, unless reporting entity two has previously carried out that procedure or a comparable procedure;

           (2) collect any KYC information in respect of the customer; or

           (3) verify, from a reliable and independent source, KYC information that has been obtained in respect of the customer, as is appropriate to the ML/TF risk relevant to provision of the designated service by reporting entity two;

      for the purpose of enabling reporting entity two to be reasonably satisfied that the customer is the person that he or she claims to be.

      66.6              For the purposes of paragraph 66.5 the following circumstances are specified:

           (1) a suspicious matter reporting obligation arises in relation to a transferring customer; or

           (2) reporting entity two reasonably suspects that reporting entity one did not carry out the applicable customer identification procedure when required; or

           (3) significant increases have occurred in the level of ML/TF risk as assessed under the AML/CTF program of reporting entity two, in relation to the provision of a designated service by reporting entity two to a transferring customer.

      66.7              In this Chapter:

           (1) 'compulsory transfer of business' means the process by which all or part of the assets and liabilities of reporting entity one become the assets and liabilities of reporting entity two pursuant to the meaning given by Part 4 of the Financial Sector (Business Transfer and Group Restructure) Act 1999;

           (2) 'reporting entity one' means the reporting entity that partially or totally transfers business;

           (3)  'reporting entity two' means the reporting entity that receives the business from reporting entity one;

           (4) 'transferring customer' means a customer who is a former customer of reporting entity one in relation to a designated service solely because of a compulsory transfer of business from reporting entity one to reporting entity two.

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.