Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p46
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 126918–130109

paragraph 4.12.1 need not be applied.

     Note:  The terms 'foreign company', 'listed public company' and 'foreign listed public company' are defined in Chapter 1 of the AML/CTF Rules.

     4.12.3 An AML/CTF program must include appropriate risk-based systems and controls for the reporting entity to determine whether, in addition to the information referred to in paragraph 4.12.1 above, any other information will be collected and verified about any beneficial owner.

     Note: Reporting entities should consider the requirements in the Privacy Act 1988 relating to the collection and handling of information about beneficial owners.

     Verification

     4.12.4 An AML/CTF program must require that the verification of information collected about each beneficial owner of a customer be based on:

           (1) reliable and independent documentation;

           (2) reliable and independent electronic data; or

           (3) a combination of (1) and (2) above.

Safe harbour procedure where ML/TF risk of the beneficial owner is medium or lower

     4.12.5 Paragraph 4.12.7 sets out one procedure for documentation‑based verification (subparagraphs 4.12.7(2) and (3)) and electronic verification (subparagraph 4.12.7(4)) which a reporting entity may include in its AML/CTF program to comply with its obligations under paragraph 4.12.1 of these Rules where the customer and the beneficial owner of the customer is of medium or lower ML/TF risk. Paragraph 4.12.7 does not preclude a reporting entity from meeting the verification requirements of paragraph 4.12.1 of these Rules in another way where the beneficial owners of the customer are of medium or lower ML/TF risk.

     4.12.6 Paragraph 4.12.7 is not applicable if any beneficial owner is a foreign politically exposed person.

     4.12.7 An AML/CTF program that requires the reporting entity to do the following will be taken to meet the requirements of paragraph 4.12.1 of these Rules in respect of the beneficial owners of a customer, where a reporting entity determines that the relationship with that customer and the beneficial owner is of medium or lower risk:

         (1) collect the information described in paragraph 4.12.1 in regard to each beneficial owner;

         Documentation-based safe harbour procedure

         (2) verify each beneficial owner's full name and either the beneficial owner's full residential address or date of birth, or both, from:

             (a) an original or certified copy of a primary photographic identification document; or

             (b) both:

                  (i) an original or certified copy of a primary non‑photographic identification document; and

                  (ii) an original or certified copy of a secondary identification document; and

         (3) verify the document produced by the customer in regard to each beneficial owner has not expired (other than in the case of a passport issued by the Commonwealth that expired within the preceding two years);

         Electronic-based safe harbour procedure

         (4) verify each beneficial owner's full name and either the beneficial owner's full residential address or