Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p139
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 388271–391231

50.4(2)(a)-(c), (if applicable); or

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

         (4) verify, from a reliable and independent source, KYC information that has been obtained in respect of the customer;

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

    50.5 For the purposes of paragraph 50.4, the following circumstances are specified:

         (1) a suspicious matter reporting obligation arises in relation to the customer to which reporting entity three has commenced to provide a designated service; or

         (2) a significant increase has occurred in the level of ML/TF risk as assessed under the AML/CTF program of the designated business group to which reporting entity three belongs, in relation to the provision of a designated service by reporting entity three to a customer of reporting entity two or by the provision of a designated service by the second reporting entity to a customer of the first reporting entity.

Exemption from customer identification provisions for a member of a designated business group where the same customers are pre-commencement customers of another member of the group

    50.6 Subject to paragraphs 50.8 and 50.9, 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 50.7.

    50.7  The specified circumstances for the purposes of paragraph 50.6 are that:

         (1) the second reporting entity has commenced to provide a designated service to a customer of the first reporting entity and the customer is a pre-commencement customer of the first reporting entity within the terms of section 28;

         (2) the second reporting entity is a member of the same designated business group to which the first reporting entity belongs; and

         (3) based on the assessed ML/TF risk and its risk-based systems and controls, it is reasonable for the second reporting entity to treat a customer who is a pre-commencement customer of the first reporting entity as if that customer is a pre- commencement customer of the second reporting entity.

    50.8 The second reporting entity must, within 14 days after any of the circumstances specified in paragraph 50.9 come into existence, take one or more of the actions specified below:

         (1) carry out the applicable customer identification procedure, or

         (2) based on the assessed ML/TF risk and its risk-based systems and controls, assess whether it is reasonable to rely upon any of the following as an appropriate means to identify and verify the identification of the customer if previously undertaken by the first reporting entity:

              (a) a prescribed verification procedure;

              (b) an identification reference; or

              (c) a procedure approved by the AUSTRAC CEO; and