Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p140
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 390920–393994

as an appropriate means to identify and verify the identification of the customer if previously undertaken by the first reporting entity:

              (a) a prescribed verification procedure;

              (b) an identification reference; or

              (c) a procedure approved by the AUSTRAC CEO; and

              (d) any relevant identification obtained by the second reporting entity in regard to subparagraph 50.4(2)(a)-(c)(if applicable); or

         (3) collect any KYC information in respect of the customer; or

         (4) verify, from a reliable and independent source, KYC information that has been obtained in respect of the customer;

    for the purpose of enabling the second reporting entity to be reasonably satisfied that the customer is the person that he or she claims to be.

    50.9  For the purposes of paragraph 50.8, the following circumstances are specified:

         (1) a suspicious matter reporting obligation arises in relation to the customer to which the second reporting entity has commenced to provide a designated service; or

         (2) a significant increase has occurred in the level of ML/TF risk as assessed under the AML/CTF program of the designated business group to which the second reporting entity belongs, in relation to the provision of a designated service by the second reporting entity to a customer of the first reporting entity.

    50.10 In this Chapter:

         (1) 'reporting entity one' means the reporting entity that assigns, conveys, sells or transfers a whole or a part of the business to reporting entity two;

         (2) 'reporting entity two' means the reporting entity to which reporting entity one assigns, conveys, sells or transfers a whole or a part of the business;

         (3) 'reporting entity three' means the reporting entity which treats a customer of reporting entity two, as a pre-commencement customer;

         (4) 'first reporting entity' means a reporting entity which is a member of a designated business group;

         (5) 'second reporting entity' means a reporting entity which is a member of the same designated business group to which the first reporting entity belongs;

         (6) 'prescribed verification procedure', 'identification reference' and 'procedure approved by the AUSTRAC CEO' have the same meaning as in the Financial Transaction Reports Act 1988 and the Financial Transaction Reports Regulations 1990;

         (7) 'transferring customer' means a customer who is a customer of reporting entity three in relation to a designated service solely because of the assignment, conveyance, sale or transfer of the whole or part of the business from reporting entity one to reporting entity two.

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these