Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p54
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 150534–153584

due diligence and record-keeping and require the other person to:

         (1) identify the customer and verify the customer's identity using reliable and independent sources, so that the other person is satisfied that it knows who the customer is; and

         (2) identify the beneficial owner of the customer and take reasonable measures to verify the identity of the beneficial owner, so that the other person is satisfied that it knows who the beneficial owner is; and

         (3) identify a person acting on behalf of the customer and take reasonable steps to verify the person's identity and authority to act on behalf of the customer, so that the other person is satisfied that it knows who the person is and that the person has authority to act on behalf of the customer.

              Note 1:       Country has meaning given by section 5 of the Act.

              Note 2:       A foreign country may include a region or regions. These regions may have a different risk profile to each other or the rest of the foreign country.
          Part 7.2 Ongoing reliance under an agreement or arrangement

     7.2.1  This Part is made for paragraph 37A(1)(b) and subsection 37B(1) of the Act.

Requirements relating to agreements or arrangements for reliance

     7.2.2 The following requirements are prescribed:

         (1) the written agreement or arrangement must:

            (a) document the responsibilities of the first entity and the other person; and

            (b) enable the first entity to obtain 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 commencing to provide a designated service to the customer; and

            (c) enable the first entity to obtain a record of the applicable customer identification procedures or the other procedures (as specified in this paragraph) carried out by the other person to verify the identity of the customer, the beneficial owner of the customer or a person acting on behalf of the customer, and all relevant documents, data and information obtained by the other person in the course of carrying out those procedures (verification information):

                 1.             immediately, in accordance with terms of the agreement or arrangement relating to the management of relevant documents and electronic data relating to identification and verification; or

                 2.          as soon as practicable following a request from the first entity to the other person; and

            (d) be approved by the governing board or a senior managing official of the first entity;

         (2) the first entity must determine:

            (a) 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