Chapter 1
Part 1.1 Introduction
1.1.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (AML/CTF Rules) are made pursuant to section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).
Section 229 of the AML/CTF Act empowers the AUSTRAC CEO to make rules prescribing matters required or permitted by the AML/CTF Act to be prescribed by AML/CTF Rules.
Note reporting entities should note that the activities they carry out in order to comply with the AML/CTF Rules are also subject to the provisions of the Privacy Act 1988, even if the reporting entity is generally exempt from that Act.
Part 1.2 Key terms and concepts
1.2.1 In the Rules in chapters 3 to 10 inclusive:
the AML/CTF Act means the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
AML/CTF program means an anti-money laundering and counter-terrorism financing program as defined in section 83 of the AML/CTF Act.
beneficial owner, in respect of a company, means any individual who owns through one or more share holdings more than 25 per cent of the issued capital in the company.
certified copy means a document that has been certified as a true copy of an original document by one of the following persons:
(1) a person who is enrolled on the roll of the Supreme Court of a State or Territory, or the High Court of Australia, as a legal practitioner (however described);
(2) a judge of a court;
(3) a magistrate;
(4) a chief executive officer of a Commonwealth court;
(5) a registrar or deputy registrar of a court;
(6) a Justice of the Peace;
(7) a notary public (for the purposes of the Statutory Declaration Regulations 1993);
(8) a police officer;
(9) an agent of the Australian Postal Corporation who is in charge of an office supplying postal services to the public;
(10) a permanent employee of the Australian Postal Corporation with 2 or more years of continuous service who is employed in an office supplying postal services to the public;
(11) an Australian consular officer or an Australian diplomatic officer (within the meaning of the Consular Fees Act 1955);
(12) an officer with 2 or more continuous years of service with one or more financial institutions (for the purposes of the Statutory Declaration Regulations 1993);
(13) a finance company officer with 2 or more continuous years of service with one or more finance companies (for the purposes of the Statutory Declaration Regulations 1993);
(14) an officer with, or authorised representative of, a holder of an Australian financial services licence, having 2 or more continuous years of service with one or more licensees.
(15) a member of the Institute of Chartered Accountants in Australia, CPA Australia or the National Institute of Accountants with 2 or more years of continuous membership.
certified extract means an extract that has been certified as a true copy of some of the information contained in a complete original document by one of the persons described in paragraphs (1)-(15) of the definition of ‘certified copy’ in paragraph 1.2.1 of these Rules.
correspondent banking risk means the money laundering or terrorism financing risk a financial institution may reasonably face in respect of a correspondent banking relationship.
domestic company means a company that is registered under the Corporations Act 2001 (other than a registered foreign company). domestic listed public company means a domestic company that is a listed public company.
domestic stock exchange means a financial market prescribed by regulations made for the purposes of the definition of ‘prescribed financial market’ in the Corporations Act 2001.
domestic unlisted public company means a domestic company that is not a listed public company.
foreign company means a body corporate of the kind described in paragraph (a) of the definition of ‘foreign company’ in the Corporations Act 2001.
foreign listed public company means a foreign company that is a listed public company.
KYC information means ‘know your customer information’ and may include information in relation to matters such as:
(1) In relation to a customer who is an individual:
(a) the customer’s name;
(b) the customer’s residential address;
(c) the customer’s date of birth;
(d) any other name that the customer is known by;
(e) the customer’s country(ies) of citizenship;
(f) the customer’s country(ies) of residence;
(g) the customer’s occupation or business activities;
(h) the nature of the customer’s business with the reporting entity – including:
(i) the purpose of specific transactions; or
(ii) the expected nature and level of transaction behaviour;
(i) the income or assets available to the customer;
(j) the customer’s source of funds including the origin of funds;
(k) the customer’s financial position;
(l) the beneficial ownership of the funds used by the customer with respect to the designated services; and
(m) the beneficiaries of the transactions being facilitated by the reporting entity on behalf of the customer including the destination of funds.
(2) In relation to a customer who is a company:
(a) the full name of the company as registered by ASIC;
(b) the full address of the company’s registered office;
(c) the full address of the company’s principal place of business (if any);
(d) the ACN issued to the company;
(e) whether the company is registered by ASIC as a proprietary company or a public company;
(f) the name of each director of the company;
(g) the full business name (if any) of the company as registered under any State or Territory business names legislation;
(h) the date upon which the company was registered by ASIC;
(i) the name of any company secretary;
(j) the nature of the business activities conducted by the company;
ML/TF risk means the risk that a reporting entity may reasonably face that the provision by the reporting entity of designated services might (whether inadvertently or otherwise) involve or facilitate money laundering or the financing of terrorism.
