Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p63
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 175453–178465

the purposes of the requirements of the group's Part A and Part B programs; and

         (5) identify, mitigate and manage any ML/TF risk arising from:

            (a) all new designated services prior to introducing them to the market;

            (b) all new methods of designated service delivery prior to adopting them;

            (c) all new or developing technologies used for the provision of a designated service prior to adopting them; and

            (d) changes arising in the nature of the business relationship, control structure or beneficial ownership of its customers.

     9.1.6 Part A must include a requirement that, in determining what is an appropriate risk‑based procedure for inclusion in Part B of the reporting entity's joint AML/CTF program, the reporting entity must have regard to ML/TF risk relevant to the provision of the designated service.

      Application

     9.1.7 Unless otherwise provided in the AML/CTF Act or these Rules, each reporting entity in the designated business group must apply Part A to all areas of its business that are involved in the provision of a designated service, including in relation to any function carried out by a third party.
          Part 9.2 AML/CTF risk awareness training program

     9.2.1 Part A must include an AML/CTF risk awareness training program that meets the requirements of paragraphs 9.2.2 and 9.2.3 below.

     9.2.2 The AML/CTF risk awareness training program must be designed so that each reporting entity gives its employees appropriate training at appropriate intervals, having regard to ML/TF risk it may reasonably face.

     9.2.3 The AML/CTF training program must be designed to enable employees to understand:

         (1) the obligations of the reporting entity under the AML/CTF Act and Rules;

         (2) the consequences of non‑compliance with the AML/CTF Act and Rules;

         (3) the type of ML/TF risk that the reporting entity might face and the potential consequences of such risk; and

         (4) those processes and procedures provided for by the reporting entity's AML/CTF program that are relevant to the work carried out by the employee.
          Part 9.3 Employee due diligence program

     9.3.1 Part A must include an employee due diligence program that meets the requirements of paragraphs 9.3.2 to 9.3.4 of these Rules.

     9.3.2 The employee due diligence program must put in place appropriate risk‑based systems and controls for each reporting entity to determine whether to, and in what manner to, screen any prospective employee who, if employed, may be in a position to facilitate the commission of a money laundering or financing of terrorism offence in connection with the provision of a designated service by the reporting entity.

     9.3.3 The employee due diligence program must include appropriate risk‑based systems and controls for each reporting entity to determine whether to, and in what manner to, re‑screen an employee where the employee