Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p135
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 377263–380168

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