Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p188
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 520249–523373

which has ceased to exist;

         (d) two or more persons whose names and enrolment details are currently on the Reporting Entities Roll have merged or amalgamated, and the merged or amalgamated entity has commenced, or has continued, to provide a designated service.

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 obligations, please go to http://www.oaic.gov.au or call 1300 363 992.

CHAPTER 66 Applicable customer identification procedures in certain circumstances – compulsory partial or total transfer of business made under the Financial Sector (Business Transfer and Group Restructure) Act 1999

      66.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules are made under section 229 for subsection 39(4) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

      66.2 Subject to paragraphs 66.5 and 66.6, commencing on the day of a compulsory transfer of business, Division 4 of Part 2 of the AML/CTF Act does not apply to a designated service that is provided in the circumstances specified in paragraph 66.3.

      66.3 The specified circumstances for the purposes of paragraph 66.2 are that:

           (1) a compulsory transfer of business from reporting entity one to reporting entity two has been effected; and

           (2) the designated service is provided to a transferring customer; and

           (3) the designated service is of a kind described in table 1 of subsection 6(2) of the AML/CTF Act; and

           (4) reporting entity two must commence an examination of reporting entity one as soon as practicable, whether before or after the compulsory transfer of business referred to in subparagraph 66.3(1), in order to determine on reasonable grounds:

                (a)              the ML/TF risk it faces in providing the designated service to the transferring customers as a group; and

                (b)              that it has in place appropriate risk based systems and controls to identify, manage and mitigate the ML/TF risk it faces in providing the designated service to the transferring customers as a group; and

                (c)              whether based on the assessed ML/TF risk and its risk-based systems and controls, it is reasonable for it to either:

                    (i)              rely upon the applicable customer identification procedure of reporting entity one as an appropriate means to identify and verify the identity of a transferring customer; or

                    (ii)              treat a transferring customer who was a pre-commencement customer of reporting entity one as if the customer was a pre-commencement customer of reporting entity two.

      66.4 The exemption provided to reporting entity two by paragraph 66.2 will end 60 days after the compulsory transfer of business