Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p24
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 65920–68907

entity to collect at a minimum, the following KYC information about a customer who notifies the reporting entity that he or she is a customer of the reporting entity in his or her capacity as a sole trader:

        (1) the customer's full name;

        (2) the customer's date of birth;

        (3) the full business name (if any) under which the customer carries on his or her business;

        (4) the full address of the customer's principal place of business (if any) or the customer's residential address; and

        (5) any ABN issued to the customer.

    4.2.5 An AML/CTF program must include appropriate risk‑based systems and controls for the reporting entity to determine whether, in addition to the KYC information referred to in paragraph 4.2.3 or 4.2.4 above, any other KYC information will be collected about a customer.

Verification of information

    4.2.6 An AML/CTF program must include a procedure for the reporting entity to verify, at a minimum, the following KYC information about a customer:

        (1) the customer's full name; and

        (2) either:

        (a) the customer's date of birth; or

        (b) the customer's residential address.

    4.2.7 An AML/CTF program must require that the verification of information collected about a customer be based on:

        (1) reliable and independent documentation;

        (2) reliable and independent electronic data; or

        (3) a combination of (1) and (2) above.

    4.2.8 An AML/CTF program must include appropriate risk‑based systems and controls for the reporting entity to determine whether, in addition to the KYC information referred to in paragraph 4.2.6 above, any other KYC information collected about the customer should be verified from reliable and independent documentation, reliable and independent electronic data or a combination of the two.

Responding to discrepancies

    4.2.9 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 KYC information collected about a customer so that the reporting entity can determine whether it is reasonably satisfied that the customer is the person that he or she claims to be.

Documentation‑based safe harbour procedure where ML/TF risk is medium or lower

    4.2.10 Paragraph 4.2.11 sets out one procedure for documentation‑based verification which a reporting entity may include in an AML/CTF program to comply with its obligations under paragraphs 4.2.3 to 4.2.8, and 4.9.1 to 4.9.3 of these Rules where the relationship with the customer is of medium or lower ML/TF risk. Paragraph 4.2.11 does not preclude a reporting entity from meeting the requirements of paragraphs 4.2.3 to 4.2.8, and 4.9.1 to 4.9.3 of these Rules in another way where the relationship with the customer is of medium or lower ML/TF risk.

    4.2.11 An AML/CTF program that requires the reporting entity to do the