Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p72
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 199807–202932

AML/CTF Act) for paragraphs 36(1)(b), 84(2)(c) and 85(2)(c) of that Act. Sections 136 and 137 of the AML/CTF Act apply to each paragraph of this Chapter. The requirements set out in these Rules do not apply in relation to a permanent establishment in a foreign country at or through which a reporting entity provides designated services. This Chapter commences on 1 June 2014.

     KYC information and Beneficial Owner Information

     Note:  Reporting entities that provide designated services to customers who are custodians or nominees of custodians are exempt from the requirements specified in paragraphs 15.2 and 15.3 of these Rules in relation to certain beneficial owner information. These exemptions are set out in paragraph 4.4.18 of Chapter 4 of these Rules.

     15.2 A reporting entity must include in Part A of its AML/CTF program appropriate risk-based systems and controls to enable a reporting entity to determine in what circumstances further KYC information or beneficial owner information should be collected or verified in respect of customers or beneficial owners of customers to enable the review and update of KYC information and beneficial owner information for ongoing customer due diligence purposes.

    Note: 'Beneficial owner information' is the information referred to in Part 4.12 of Chapter 4 of these Rules.

     15.3 A reporting entity must undertake reasonable measures to keep, update and review the documents, data or information collected under the applicable customer identification procedure (particularly in relation to high risk customers) and the beneficial owner identification requirements specified in Chapter 4 of these Rules.

    Transaction monitoring program

     15.4 A reporting entity must include a transaction monitoring program in Part A of its AML/CTF program.

     15.5 The transaction monitoring program must include appropriate risk‑based systems and controls to monitor the transactions of customers.

     15.6 The transaction monitoring program must have the purpose of identifying, having regard to ML/TF risk, any transaction that appears to be suspicious within the terms of section 41 of the AML/CTF Act.

     15.7  The transaction monitoring program should have regard to complex, unusual large transactions and unusual patterns of transactions, which have no apparent economic or visible lawful purpose.

     Enhanced customer due diligence program

     Note:  Reporting entities that provide designated services to customers who are custodians or nominees of custodians are exempt from the requirements specified in subparagraphs 15.9(2), 15.10(1)(b), 15.10(1)(c), 15.10(2) and 15.10(4) of these Rules in relation to underlying customers of custodians or nominees of custodians. These exemptions are set out in paragraph 4.4.18 of Chapter 4 of these Rules.

     15.8 A reporting entity must include an enhanced customer due diligence program in Part A of its AML/CTF program.

     15.9 Subject to paragraph 4.4.18, the reporting entity must apply the enhanced customer due diligence program when:

         (1)              it