Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p21
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 57519–60756

to money laundering, financing of terrorism or other serious crimes;

          (7) if the correspondent maintains vostro accounts that can be accessed directly by the customers of the respondent (payable-through accounts)—the respondent:

            (a) conducts customer due diligence and ongoing customer due diligence in relation to those customers; and

            (b) is able to provide to the correspondent, on request, the documents, data or other information obtained when conducting customer due diligence and ongoing customer due diligence in relation to those customers.

         Requirement for senior officer approval

     3.1.4 The senior officer of the correspondent (senior officer) must have regard to:

         (1) the money laundering, financing of terrorism or other serious crime risks assessed in the written record of the due diligence assessment; and

         (2) the adequacy and effectiveness of the correspondent's anti-money laundering and counter-terrorism financing program to manage those risks;

         before approving entry into a correspondent banking relationship.

     3.1.5 If the correspondent maintains payable-through accounts, the senior officer must be satisfied that the respondent:

         (1) verifies the identify of, and conducts ongoing customer due diligence in relation to, customers before they have access to those accounts; and

         (2) is able to provide the correspondent, on request, the documents, data, or other information obtained when conducing customer due diligence and ongoing customer due diligence in relation to the customers that have access to those accounts.

         Part 3.2  Ongoing assessments of a correspondent banking relationship

     3.2.1 This Part is made for subsection 96(3) of the Act.

         Carrying out ongoing assessments

     3.2.2 The first institution (the correspondent) must conduct due diligence to assess the money laundering, financing of terrorism or other serious crime risks of a correspondent banking relationship with another financial institution (the respondent) that involves a vostro account.

     3.2.3 The correspondent must consider the factors set out in subparagraphs 3.1.3(1)–(7) when assessing money laundering, financing of terrorism or other serious crime risks.

     Timing of ongoing assessments

     3.2.4 The correspondent must conduct assessments at times determined appropriate by the correspondent, based on consideration of:

         (1) the level of money laundering, financing of terrorism or other serious crime risks of the correspondent banking relationship; and

         (2) any material change in respect of those risks;

    but in any event, at least every two years.

CHAPTER 4
          Part 4.1 Introduction

    4.1.1 These Rules are made pursuant to section 229 of the AML/CTF Act for the purposes of paragraphs 36(1)(b), 84(2)(c), 84(3)(b), 85(2)(c) and 85(3)(b), and sections 106, 107 and 108 of the AML/CTF Act. Sections 136 and 137 of the AML/CTF Act apply to each paragraph of this Chapter. They specify the requirements with which Part A or Part B of a reporting entity's standard AML/CTF program or Part A or Part B of a reporting entity's