Document ID: chunk:federal_register_of_legislation:C2024A00110:clause:8_66a:p1
Version: federal_register_of_legislation:C2024A00110
Segment Type: clause
Provision Reference: sch 8 cl 66A (pt 1/2)
Character Range: 155438–158144

66A  Obligations of ordering and beneficiary institutions relating to virtual asset transfers

Scope
 (1) This section applies to the transfer of a virtual asset.

Ordering institution obligations
 (2) Before commencing to provide the designated service covered by item 29 of table 1 in section 6, an ordering institution must undertake due diligence to determine, on reasonable grounds, whether the virtual asset wallet to which the virtual asset is being transferred is:
 (a) a custodial wallet controlled by a person who is licensed or registered under a law that gives effect to the FATF Recommendations; or
 (b) a custodial wallet controlled by a person who is not required to be licensed or registered under a law that gives effect to the FATF Recommendations; or
 (c) a custodial wallet controlled by a person who is required to be licensed or registered under a law that gives effect to the FATF Recommendations, but is not so licensed or registered; or
 (d) a self‑hosted wallet controlled by the payee.
 (3) The ordering institution must pass on the information specified in the AML/CTF Rules for the purposes of subsection 64(3) relating to the transfer of value to a beneficiary institution if the beneficiary institution is:
 (a) a person who is licensed or registered under a law that gives effect to the FATF Recommendations; or
 (b) a person who is not required to be licensed or registered under a law that gives effect to the FATF Recommendations.
 (4) An ordering institution must not provide the designated service covered by item 29 of table 1 in section 6 if this would involve passing on a transfer message for a transfer of value to a person:
 (a) who is required to be licensed or registered under a law that gives effect to the FATF Recommendations; but
 (b) is not so licensed or registered.

Beneficiary institution obligations
 (5) Before commencing to provide the designated service covered by item 30 of table 1 in section 6, a beneficiary institution must undertake due diligence to determine, on reasonable grounds, whether the virtual asset wallet from which the virtual asset has been transferred is:
 (a) a custodial wallet controlled by a person who is licensed or registered under a law that gives effect to the FATF Recommendations; or
 (b) a custodial wallet controlled by a person who is not required to be licensed or registered under a law that gives effect to the FATF Recommendations; or
 (c) a custodial wallet controlled by a person who is required to be licensed or registered under a law that gives effect to the FATF Recommendations, but is not so licensed or registered; or
 (d) a self‑hosted wallet controlled by the payer.
 (6) A beneficiary institution