Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p48
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 132632–135661

has been provided. If it is determined that the customer or beneficial owner is a politically exposed person, the reporting entity must carry out the applicable steps in this Part.

    4.13.2 An AML/CTF program must include appropriate risk-management systems for the reporting entity to undertake each of the following steps for domestic politically exposed persons and international organisation politically exposed persons:

         (1) in the case of a beneficial owner, comply with the identification requirements specified in paragraphs 4.2.3 to 4.2.9 of these Rules as if the politically exposed person was the customer; and

    (2) determine whether the person is of high ML/TF risk; and

         (3) if the person is determined to be of high ML/TF risk, then, in addition to the action specified in subparagraph 4.13.2(1), carry out the actions specified in subparagraphs 4.13.3(2), (3) and (4).

    4.13.3 An AML/CTF program must include appropriate risk-management systems for the reporting entity to undertake each of the following steps for foreign politically exposed persons and for high ML/TF risk domestic or international organisation politically exposed persons:

         (1) in the case of a beneficial owner, comply with the identification requirements specified in paragraphs 4.2.3 to 4.2.9 of these Rules as if the politically exposed person was the customer; and

         (2) obtain senior management approval before establishing or continuing a business relationship with the individual and before the provision, or continued provision, of a designated service to the customer;

         (3) take reasonable measures to establish the politically exposed person's source of wealth and source of funds; and

         (4) comply with the obligations in Chapter 15 of these Rules.

    4.13.4 An AML/CTF program must include appropriate risk-based systems and controls for the reporting entity to respond to any discrepancy that arises in the course of verifying information collected about a politically exposed person, so that the reporting entity can be reasonably satisfied that the politically exposed person is the person that he or she claims to be.

    Note: Reporting entities should consider the requirements in the Privacy Act 1988 relating to the collection and handling of sensitive information about politically exposed persons.

          Part 4.14 Exemptions relating to the identification of beneficial owners and politically exposed persons

    4.14.1 The requirements in Parts 4.12 and 4.13 of these Rules do not apply to a reporting entity which:

         (1) provides a designated service of the type specified in Column 1; and

         (2) is exempt from Division 4 of Part 2 of the AML/CTF Act in accordance with the circumstances and conditions of the AML/CTF Act or AML/CTF Rules specified in Column 2;

         of the following table:

Column 1 – Relevant designated service in subsection 6(2), 6(3) or 6(4) of the AML/CTF Act  Column 2 – AML/CTF Act and