Anti-Money Laundering and Counter-Terrorism Financing Rules (AML/CTF Rules)

Under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), the Chief Executive Officer (CEO) of AUSTRAC may, in writing, make Anti-Money Laundering and Counter-Terrorism Financing Rules (AML/CTF Rules). The AML/CTF Rules are legislative instruments and are therefore binding.

Registered AML/CTF Rules

The following AML/CTF Rules have been made and registered:

Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1)

The current compilation comprises:

• 'designated business group' definition (view the explanatory statement)
• correspondent banking (view the explanatory statement)
• customer identification (view the explanatory statement)
• AML/CTF programs (view the explanatory statement)
• gambling services (view the explanatory statement)
• AML/CTF compliance reports - reporting and lodgment periods (view the explanatory statement)
• electronic funds transfer instructions involving use of a credit card (view the explanatory statement)
• 'approved third-party bill payment system' definition (view the explanatory statement)
• monetary thresholds for certain designated services in tables 1 and 3 (amended October 2008; view the original explanatory statement and the amendment explanatory statement)
• ongoing customer due diligence (view the explanatory statement)
• international funds transfer instruction reportable details (view the explanatory statement)
• suspicious matter reportable details (view the explanatory statement)
• threshold transaction reportable details (view the explanatory statement)
• record-keeping obligations under section 114 (view the explanatory statement)
• issuing or selling a security or derivative (view the explanatory statement)
• over-the-counter derivatives market - exemption of certain transaction types (view the explanatory statement)
• designated remittance arrangements (view the explanatory statement)
• movements of physical currency into or out of Australia (view the explanatory statement)
• receipts of physical currency from outside Australia (view the explanatory statement)
• movements of bearer negotiable instruments (view the explanatory statement)
• Register of Providers of Designated Remittance Services (view the explanatory statement)
• customer identification procedures under business restructures (view the explanatory statement)
• records which are exempt under section 107 (view the explanatory statement)
• contents of disclosure certificates (view the explanatory statement)
• exemption of certain types of foreign currency exchange transactions (view the explanatory statement)
• exemption of certain types of transactions for safe deposit boxes or similar facilities (view the explanatory statement)
• customer identification procedures for sales of bullion less than $5000 (view the explanatory statement)
• notices about cross-border movement reporting obligations (view the explanatory statement)
• inserts definition of 'accredited translator' (view the explanatory statement)
• minor amendment to Chapter 19 (view the explanatory statement)
• extends designated business groups to accountancy and law practices (view the explanatory statement)
• exemption of correspondent banking relationships (view the explanatory statement)
• amends definition of 'certified copy' and 'certified extract' (view the explanatory statement)
• corporate treasuries (view the explanatory statement)
• threshold transaction reporting for authorised deposit-taking institutions (view the explanatory statement)
• sale of shares for charitable purposes (view the explanatory statement)
• premium funding loans for general insurance policies (view the explanatory statement)
• provides compliance reporting period for 2009 (view the explanatory statement)
• commodity warehousing of grain (view the explanatory statement)
• friendly society closed funds (view the explanatory statement)
• definition of 'exempt legal practitioner service' (view the explanatory statement)
• cashing out of low balance superannuation accounts (view the explanatory statement)
• allow remitters to form designated business groups (view the explanatory statement)
• allows the AUSTRAC CEO to remove a person's name and registrable details from the register of Providers of Designated Remittance Services (view the explanatory statement)
• exemption from certain provisions of the AML/CTF Act for debt collectors (view the explanatory statement)
• special circumstances for customer identification (view the explanatory statement)
• risk-only life policy interests in a superannuation fund (view the explanatory statement)
• exemption of salary packaging administration services (view the explanatory statement)
• amendments to Chapter 11 (view the explanatory statement)
• amendments to Chapter 19 (view the explanatory statement)
• amendments to Chapter 1 (view the explanatory statement)
• amendments to Chapter 17 (view the explanatory statement)
• exemption relating to International Uniform Give-Up Agreements (view the explanatory statement)
• pre-commencement customers in a designated business group (view the explanatory statement)
• amendments to Chapter 16 (IFTI-E reporting) (view the explanatory statement)
• adding Chapter 51 (Travelex and KEB Australia) (view the explanatory statement)
• exemption for small licensed gaming machine operators (view the explanatory statement)
• extension of sunset clause from 30 June 2011 to 30 June 2012 (view the explanatory statement)
• amendments to Chapter 15 (view the explanatory statement)
• amendments to Chapter 19 (view the explanatory statement)
• addition of Chapter 53 (view the explanatory statement)
• reporting obligations of registered remittance affiliates
  (view the explanatory statement)
• Remittance Sector Register (view the explanatory statement)
• information in an application for registration
  (view the explanatory statement)
• consideration of applications for registration
  (view the explanatory statement)
• cancellation of registration (view the explanatory statement)
• suspension of registration (view the explanatory statement)
• change in registration details (view the explanatory statement)
• reporting obligations of remittance affiliates
  (view the explanatory statement)
• Reporting Entities Roll (view the explanatory statement)
• information in application for enrolment
  (view the explanatory statement)
• changes in enrolment details on the Reporting Entities Roll
  (view the explanatory statement)
• removal of entries from the Reporting Entities Roll
  (view the explanatory statement).
• amendments to Chapter 11 - exemption from 2011 compliance reporting (view the explanatory statement).
• amendments to Chapter 19 - changes in terminology (view the explanatory statement).
• amendments to Chapter 23 - changes in terminology (view the explanatory statement).
• amendments to Chapter 34 - changes in terminology (view the explanatory statement).
• amendments to Chapter 51 - change in title of Travelex (view the explanatory statement).
• compulsory transfers under the Financial Sector (Business Transfer and Group Restructure) Act 1999 (view the explanatory statement). 

The above instrument contains the AML/CTF Rules previously found in the Anti-Money Laundering and Counter-Terrorism Financing Rules (relating to cross-border movements of physical currency and bearer negotiable instruments and the Register of Providers of Designated Remittance Services) and the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 2) (relating to paragraph (e) of the definition of 'correspondent banking relationship' in section 5 of the AML/CTF Act).

Prior to making and registering all the above AML/CTF Rules, AUSTRAC consulted with industry. Draft versions were also published on the AUSTRAC website for public comment. A number of non-confidential submissions to AUSTRAC from industry and other interested parties in relation to the AML/CTF Rules were also published

Draft Determination

Draft Determination relating to setting of 'census day' (PDF, 51KB)
 
This draft Determination sets '10 February 2012' as the 'census day' under the Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Act 2011.  The census day is the day on which a reporting entity's liability to pay the levy is determined by the AUSTRAC CEO. A public consultation period was open from 10 January to 17 January 2012.

Draft AML/CTF Rules

Draft amendments to Chapter 51 (PDF, 45KB)

These draft amendments to Chapter 51 of the AML/CTF Rules will resolve an international funds transfer instruction (IFTI) reporting anomaly whereby IFTIs between PayPal Australia and PayPal Europe are reportable, but those between PayPal Australia and PayPal US and PayPal Singapore are not. A public consultation period was open from Tuesday 20 December 2011 to Tuesday 17 January 2012.

Draft AML/CTF Rules exempting financial institutions from the applicable customer identification procedure in certain circumstances (PDF, 52KB)

These draft AML/CTF Rules exempt reporting entities providing designated services under item 2 (relating to allowing a person to become a signatory to an account) or item 3 (allowing a transaction to be conducted on an account) of the AML/CTF Act from conducting the applicable customer identification procedure in certain circumstances. A public consultation period was open from 22 November to 20 December 2011.

Draft amendments to Chapter 28 (PDF, 53KB)

These amendments to Chapter 28 make it clear that the Chapter applies to voluntary transfers of business undertaken pursuant to the Financial Sector (Business Transfer and Group Restructure) Act 1999 (FSA), but not to compulsory transfers of businesses pursuant to Part 4 of the FSA. A public consultation period was open from Tuesday 18 October to Tuesday
15 November 2011.

Draft amendments to Chapter 21 (PDF, 50KB) 

These draft amendments extend the exemption in Chapter 21 from Australian markets to those foreign financial markets which use a proprietary system to undertake transactions, and it is not reasonably practical for the reporting entity to identify the customer as a result of that system. The draft amendments also clarify that 'stapled securities' are intended to be covered under the provisions relating to managed investment schemes, and ensure that the 'Sydney Futures Exchange' is not excluded from the relief applying to Australian markets by amending the relevant definition. A public consultation period was open from 13 September to 11 October 2011.

Draft amendments to Chapter 1 (PDF, 47KB)

These draft amendments replace the current definition of 'beneficial owner' in Chapter 1 with a new definition relating to 'ultimate beneficial ownership'. A public consultation period was open from Thursday 11 August until Thursday 8 September 2011.

Draft AML/CTF Rules amending Chapter 4 (self-managed superannuation funds) (PDF, 52KB)

These draft amendments amend Chapter 4 to ensure that reporting entities may no longer use the simplified trustee verification procedure in regard to self-managed super funds. A public consultation period was open from Tuesday 12 April to Tuesday 10 May.

Draft AML/CTF Rules amending Chapter 8 (PDF, 43KB) 

These draft amendments to Chapter 8 require reporting entities to expressly state in their standard AML/CTF program what obligations they have under the AML/CTF Act, and to specify in broad terms the systems and controls which they have implemented in regard to those obligations. A public consultation period was open from Tuesday 12 April to Tuesday 10 May.

Draft AML/CTF Rules amending Chapter 9 (PDF, 43 KB)

These draft amendments to Chapter 9 require reporting entities to expressly state in their joint AML/CTF program what obligations they have under the AML/CTF Act, and to specify in broad terms the systems and controls which they have implemented in regard to those obligations. A public consultation period was open from Tuesday 12 April to Tuesday 10 May.

Draft AML/CTF Rules relating to section 112 of the AML/CTF Act (PDF, 43KB)
 
These draft AML/CTF Rules require that customer identification records be maintained by a reporting entity in a manner that is capable of being understood by an authorised officer and enable that officer to readily ascertain whether the reporting entity has complied with its obligations. A public consultation period was open from Tuesday 12 April to Tuesday 10 May.

Draft AML/CTF Rules on 'certain companies' (PDF, 43KB)

Chapter 4.3 sets out the 'Applicable customer identification procedure with respect to companies'. Rule 4.3.2(2) states, 'in respect of certain companies, the name and address of any beneficial owner of the company has been provided'. The insertion of a definition for 'certain companies' provides clarification of this term as used in Chapter 4 of the AML/CTF Rules. A public consultation period was open from 17 June 2010 to 30 June 2010.

Submissions on draft AML/CTF Rules should be sent to:

Director

AML/CTF Rules

PO Box 13173

Law Courts

MELBOURNE VIC 8010

aml_ctf_rules@austrac.gov.au

Please note that all submissions may be made public except those marked 'confidential'.

Future consultation

Future consultation with the Attorney-General's Department, other relevant government departments and industry will continue to occur regarding new draft AML/CTF Rules.