Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p138
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 385447–388554

the reporting entity 'gives up' or otherwise refers the order or orders.

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to http://www.oaic.gov.au or call 1300 363 992.
CHAPTER 50 Exemption from applicable customer identification procedure in certain circumstances

    50.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 for subsection 39(4) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

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

    50.2  Subject to paragraphs 50.4 and 50.5, 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 50.3.

    50.3 The specified circumstances for the purposes of paragraph 50.2 are that:

         (1) reporting entity one has assigned, conveyed, sold or transferred the whole or a part of its business to reporting entity two;

         (2) reporting entity three has commenced to provide a designated service to the customers of reporting entity two;

         (3) reporting entity three is a member of the same designated business group to which reporting entity two belongs; and

         (4) based on the assessed ML/TF risk and its risk-based systems and controls, it is reasonable for reporting entity three to treat a transferring customer who is treated as a pre-commencement customer of reporting entity two under Chapter 28 as if that customer is a pre-commencement customer of reporting entity three.

    50.4 Reporting entity three must, within 14 days after any of the circumstances specified in paragraph 50.5 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 reporting entity two:

              (a) a prescribed verification procedure;

              (b)  an identification reference; or

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

              (d) any relevant identification obtained by reporting entity three in regard to subparagraph 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