Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p97
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 272324–275273

made by the first reporting entity in accordance with subsection 112(2), under an agreement in place for the management of identification records; and

         (2) determined that it is appropriate for it to rely upon the applicable customer identification procedure carried out by the first reporting entity having regard to the ML/TF risk faced by the second reporting entity relevant to the provision of the designated service to the customer.

     20.3 In this Chapter:

         (1) 'first reporting entity' means the reporting entity referred to in paragraph 114(1)(a) of the AML/CTF Act; and

         (2) 'second reporting entity' means the reporting entity referred to in paragraph 114(1)(b) of the AML/CTF Act.

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 21 Issuing or selling a security or derivative

Anti-Money Laundering and Counter-Terrorism Financing Rules for issuing or selling a security or derivative

    21.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for paragraph (d) of item 35 of table 1 in subsection 6(2) and subsection 247(3) of that Act.

    21.2 For paragraph (d) of item 35 of table 1 in subsection 6(2) of the AML/CTF Act, the condition applies that the service is not a disposal of a security or derivative through an agent who is doing so in the course of carrying on a business of disposing of securities or derivatives in the capacity of agent, within the terms of item 33 of table 1 in subsection 6(2) of that Act.

    21.3  For subsection 247(3) of the AML/CTF Act, the following designated services provided in any of the following circumstances are specified:

        (1)  a person issuing or selling a security or derivative to another person (transaction) under item 35 of table 1 in subsection 6(2) of the AML/CTF Act and the transaction occurs:
           (a) on a prescribed financial market; or
           (aa) on a specified financial market; or
           (b) on a financial market in a foreign jurisdiction where:

                (i) the financial market uses a proprietary system to facilitate the transaction; and

                (ii) as a result of the use of that proprietary system, it is not reasonably practicable to conduct the applicable customer identification procedure on the customer in that jurisdiction; or

        (2) an issue of an interest in a managed investment scheme (including an option to acquire an interest in a managed investment