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:
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).
AUSTRAC is progressivley consolidating all instruments into the compilation. The following instruments have not yet been compiled and contain:
Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2009 (No.3)
- inserts definition of 'accredited translator'
- minor amendment to Chapter 19
- extends designated business groups to accountancy and law practices
- exemption of correspondent banking relationships
View the explanatory statement for the above instrument.
Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2009 (No.4)
- amends definition of 'certified copy' and 'certified extract'
- corporate treasuries
- threshold transaction reporting for authorised deposit-taking institutions
- sale of shares for charitable purposes
- premium funding loans for general insurance policies
View the explanatory statement for the above instrument.
Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2009 (No.5)
- provides compliance reporting period for 2009
- commodity warehousing of grain
- friendly society closed funds
- definition of 'exempt legal practitioner service'
- cashing out of low balance superannuation accounts
View the explanatory statement for the above instrument.
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 AML/CTF Rules
Draft AML/CTF Rules on the Register of Providers of Designated Remittance Services (PDF, 53KB)
These AML/CTF Rules allow the AUSTRAC Chief Executive Officer (CEO) to remove from or refuse to enter onto the Register of Providers of Designated Remittance Services, a person's name and registrable details, if the AUSTRAC CEO considers that those details would constitute an unacceptable money laundering or terrorism financing risk. They cover individuals, body corporates, trusts and partnerships and representatives of such persons. A public consultation period was open from 18 December 2009 to 22 January 2010.
Draft AML/CTF Rules amending Chapter 2 (PDF, 94KB)
Chapter 2 of the AML/CTF Rules provides the definition of 'designated business group'. These draft Rules amend the Chapter 2 definition to allow reporting entities that are either a representative or sub-representative of a money transfer service provider, and who provide a registrable designated remittance service through that provider, to form a designated business group. A public consultation period was open from 8 December 2009 to 15 January 2010.
Draft AML/CTF Rules amending Chapter 19 (PDF, 54KB)
These draft AML/CTF Rules amend Chapter 19 in regard to customers who are not individuals. AUSTRAC currently requires that reporting entities should report both the 'holder of the account' and 'each other signatory to the account', when they relate to non-individual customers making threshold transaction reports. As signatories to non-individual accounts may number in the hundreds, AUSTRAC considers it an unnecessary financial and administrative burden on industry for a threshold transaction report to specify each signatory to an account. These amendments (indicated in bold), specify that in regard to non-individual accounts, reporting entities now need only supply details about the holder of the account, and the signatory to the account who is conducting the transaction. A public consultation period was open from 8 December 2009 to 15 January 2010.
Draft AML/CTF Rules relating to risk only life policy interests in a superannuation fund (PDF, 74KB)
These draft AML/CTF Rules exempt reporting entities from the AML/CTF Act who provide the item 42 and 43 designated services, relating to risk only life policy interests in a superannuation fund. As a result of the definition of 'life policy' in section 5 of the AML/CTF Act, the provision of risk-only life policies by life insurance companies are not caught by the Act. However, the same policies as provided by superannuation funds are captured, and therefore these funds have obligations under the Act. These draft AML/CTF Rules ensure that superannuation funds providing such policies are treated in the same manner under the AML/CTF Act as life insurers. A public consultation period was open from 8 December 2009 to 15 January 2010.
Draft AML/CTF Rules for the exemption of salary packaging administration services from the AML/CTF Act (PDF, 52KB)
These AML/CTF Rules exempt providers of administration services relating to salary packaging from the Act where their activities relate solely to the item 6, item 7 and item 48 designated services. A public consultation period was open from 27 October 2009 to 10 November 2009.
Draft AML/CTF Rules relating to warrants (PDF, 45KB)
These draft AML/CTF Rules exempt reporting entities that are warrant issuers, subject to specific circumstances, from the applicable customer identification procedure of the AML/CTF Act, if they provide the item 33, item 35 and item 46 designated services. As a result of these AML/CTF Rules, duplication of the applicable customer identification procedure by relevant reporting entities will be avoided. A public consultation period was open from 15 October 2009 to 29 October 2009.
Draft AML/CTF Rules relating to International Uniform Give-Up Agreements (PDF, 44KB)
These draft AML/CTF Rules exempt reporting entities that are executing brokers from the applicable customer identification procedure of the AML/CTF Act, if they provide the item 33 designated service. The AML/CTF Act currently requires brokers to identify customers before they provide a designated service. However, where an executing broker gives up a trade to a clearing broker, customer identification under the Act is duplicated. As a result of these draft AML/CTF Rules, duplication of the applicable customer identification procedure by relevant reporting entities will be avoided. A public consultation period was open from 8 October 2009 to 22 October 2009.
Draft AML/CTF Rules relating to debt collection (PDF, 31KB)
These draft AML/CTF Rules exempt from specified provisions of the AML/CTF Act, those persons who in the capacity of a debt collector, provide certain designated services. These draft AML/CTF Rules do not remove, when appropriate, the obligation on debt collectors to make suspicious matter reports under section 41 of the AML/CTF Act. A public consultation period was open from 8 October 2009 to 22 October 2009.
Draft AML/CTF Rules setting special circumstances for the applicable customer identification procedure (PDF, 69KB)
These draft AML/CTF Rules were previously issued for public consultation in early 2008. As a result of that consultation, the draft Rules have been amended and are reissued for a further period of consultation. They provide that in specified circumstances a reporting entity may carry out the applicable customer identification procedure after commencing to provide certain designated services to a customer. A public consultation period was open from 19 December 2008 to 30 January 2009.
Submissions on draft AML/CTF Rules should be sent to:
Senior Manager
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.
