Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p56
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 156112–159288

the requirements in subparagraphs 7.2.2(3)–(5); and

         (2) the other person has obtained all required KYC information relating to the identity of:

             1.           the customer; and

             2.           the beneficial owner of the customer (if any); and

             3.           a person acting on behalf of the customer (if any);

         before the first entity commences to provide a designated service to the customer; and

         (3) the first entity has reasonable grounds to believe that the verification information will be:

             1.           immediately available to the first entity under an agreement in place for the management of relevant documents and electronic data relating to identification and verification; or

             2.           otherwise made available to the first entity as soon as practicable following receipt by the other person of a written request from the first entity, but in any event within 7 calendar days of the request being received.

         Note :  Subsection 38(c) and section 32 require the first entity to obtain the KYC information referred to in subparagraph 7.3.2(2) from the other person before commencing to provide a designated service.

     7.3.3 A belief formed under paragraph 7.3.2 will only be reasonable if the first entity has considered the following factors:

         (1) the type and level of money laundering, financing of terrorism or other serious crime risks that the first entity may reasonably be expected to face in its provision of the designated services to the customer;

         (2) the level of money laundering, financing of terrorism or other serious crime risks in the country or countries in which the other person operates or resides;

         (3) the nature, size, and complexity of the other person's business, including its products, services, delivery channels, and customer types.

     7.3.4 The first entity must make a written record that sets out how the first entity met the requirements in paragraphs 7.3.2 and 7.3.3.

Deemed compliance—reliance within a corporate or designed business group

     7.3.5 The first entity is taken to comply with the requirements of paragraphs 7.3.2 and 7.3.3 if the following conditions are met:

         (1) the first entity relies on the applicable customer identification procedures or other procedures (as specified in paragraph 7.1.2) carried out by another person who is a member of the same corporate group or designated business group;

         (2) the first entity and the other person:

             1.           apply a joint anti-money laundering and counter terrorism-financing program (AML/CTF program) or other group-wide measures relating to customer due diligence and record keeping; and

             2.           have implemented a joint AML/CTF program or other 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