Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p62
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 172740–175719

relation to these Rules in Parts 9.1 to 9.7 and 9.9) for the purposes of paragraphs 36(1)(b) and 85(2)(c) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). Part 7 of the AML/CTF Act obliges a reporting entity to adopt and maintain an AML/CTF program relating to the provision of designated services. A joint AML/CTF program is a program that applies to each reporting entity that from time to time belongs to a designated business group. Joint AML/CTF programs are divided into Parts A and B.

     9.1.2 The primary purpose of Part A of a joint AML/CTF program is to identify, manage and mitigate ML/TF risk faced by each reporting entity (in a designated business group) in relation to the provision by the reporting entity of designated services at or through a permanent establishment in Australia. These Rules set out the requirements with which Part A of a joint AML/CTF program must comply.

    The risk‑based approach and ML/TF risk

     9.1.3 Some of the requirements specified in these Rules may be complied with by putting in place appropriate risk‑based systems and controls. In determining and putting in place appropriate risk‑based systems and controls, Part A must have regard to the following factors in relation to each reporting entity in the designated business group:

         (1) the nature, size and complexity of business; and

         (2) the type of ML/TF risk that might be reasonably faced.

     9.1.4 For the purposes of these Rules, in identifying the ML/TF risk, Part A must take account of the risk posed by the following factors in relation to each reporting entity in the designated business group:

         (1) the customer types, including any politically exposed persons;

         (2) the types of designated services provided;

         (3) the methods by which designated services are delivered; and

         (4) the foreign jurisdictions dealt with.

     9.1.5 Part A must be designed to enable the group to:

         (1) understand the nature and purpose of the business relationship with its customer types, including, as appropriate, the collection of information relevant to that understanding; and

         (2) understand the control structure of non-individual customers;

         (3) identify significant changes in ML/TF risk for the purposes of the group's Part A and Part B programs, including:

            (a) risks identified by consideration of the factors in paragraph 9.1.4; and

            (b) risks arising from changes in the nature of the business relationship, control structure or beneficial ownership of its customers; and

         (4) such changes in ML/TF risk to be recognised for the purposes of the requirements of the group's Part A and Part B programs; and

         (5) identify, mitigate and manage any ML/TF risk arising from:

            (a) all new designated services prior to introducing them to the market;

            (b) all new