Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p57
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 158984–162032

group-wide anti-money laundering and counter terrorism-financing risk-based systems and controls consistent with the requirements of the relevant FATF Recommendations;

         (3) any higher money laundering, financing of terrorism or serious crime risks in the country or countries in which the other person operates or resides are adequately identified, mitigated and managed by the joint AML/CTF program and risk-based systems and controls of the corporate group or designated business group;

         (4) the implementation of the risk-based system and controls mentioned in subparagraphs (2) and (3) are supervised or monitored at a group-level by a body empowered by law to supervise and enforce equivalent CDD and record-keeping obligations.

         Note 1:  If the first entity relies on applicable customer identification procedures or other procedures (as prescribed by paragraph 7.1.2) undertaken by another person under Part 7.3, the first entity retains ultimate responsibility for ensuring that all relevant obligations relating to customer identification and verification, and ongoing due diligence under the Act and Rules are met.

         Note 2:  Reporting entities that collect information about a customer, beneficial owner of a customer, or person acting on behalf of a customer, from a third party will need to consider their obligation under Australian Privacy Principle (APP) 3. An APP entity must only collect personal information which is reasonably necessary for one or more of the entity's functions or activities (see APP 3.8).

CHAPTER 8
          Part 8.1 Part A of a standard anti‑money laundering and counter‑terrorism financing (AML/CTF) program

     8.1.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made pursuant to section 229 and (in relation to these Rules in Parts 8.1 to 8.7 and 8.9) for the purposes of paragraphs 36(1)(b) and 84(2)(c) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). Part 7 of the AML/CTF Act obliges a reporting entity to adopt and maintain an AML/CTF program relating to the provision of designated services. A standard AML/CTF program is a program that applies to a particular reporting entity. Standard AML/CTF programs are divided into Parts A and B.

     8.1.2 The primary purpose of Part A of a standard AML/CTF program is to identify, manage and mitigate money laundering or terrorism financing (ML/TF) risk a reporting entity may reasonably face in relation to the provision by the reporting entity of designated services at or through a permanent establishment in Australia. These Rules set out the requirements with which Part A of a standard AML/CTF program must comply.

    The risk‑based approach and ML/TF risk

     8.1.3 Some of the requirements specified in these Rules may be complied with by a reporting entity putting in place appropriate risk‑based systems or controls. When determining and putting in place appropriate risk‑based systems or controls, the reporting entity must