Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p126
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 353040–355987

Act. For further information about these obligations, please go to http://www.oaic.gov.au or call 1300 363 992.
CHAPTER 36 Exemption of certain designated services within a corporate structure

     36.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 and subsection 247(3) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

     36.2 Subject to paragraph 36.6, the AML/CTF Act does not apply to a designated service that is:

         (1) of a kind described in any item of table 1 in subsection 6(2) of the AML/CTF Act; and

         (2) provided to a customer that is related to the entity providing the service as described in paragraph 36.4.

     36.3 Subject to paragraph 36.6, the AML/CTF Act does not apply to a designated service that is:

         (1) of a kind described in item 48 or item 49 of table 1 in subsection 6(2) of the AML/CTF Act;

         (2) provided to a lender; and

         (3) provided where the borrower is related to the entity providing the service as described in paragraph 36.4.

     36.4 For the purposes of this Chapter a customer and an entity providing a designated service are related if, and only if:

         (1) the customer and the entity providing the service are related bodies corporate within the meaning of the Corporations Act 2001;

         (2) the customer is controlled by the entity providing the service;

         (3) the entity providing the service is controlled by the customer;

         (4) a third entity controls both the customer and the entity providing the service; or

         (5) the customer and the entity providing the service is a partnership.

     36.5 Subparagraph 36.4(5) does not apply if the partnership is a limited partnership within the meaning of paragraph (b) of the definition of 'limited partnership' for the purpose of the Income Tax Assessment Act 1997.

     36.6 The exemptions in paragraph 36.2 and paragraph 36.3 only apply if:

         (1) the customer is resident in Australia; or

         (2) if the customer is not resident in Australia, prior to providing the designated service, the entity providing the service has concluded on reasonable grounds that the money-laundering and terrorism financing risk of providing the service is the same as, or lower than, these risks would be in providing the same service to a substantially similar customer in Australia.

     36.7 In this Chapter:

        (1)  'control' has the same meaning as in the Corporations Act 2001.

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