Untitled Document
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 progressively 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 2010 (No.1)
- allow remitters to form designated business groups
- allows the AUSTRAC CEO to remove a person's name and registrable details from the Register of Providers of Designated Remittance Services
- exemption from certain provisions of the AML/CTF Act for debt collectors
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 Amendments to Chapter 19 AML/CTF Rules (PDF, 65KB)
These draft amendments incorporate the changes to the reporting of signatories which were previously published for public consultation in January 2010. They also incorporate changes to the reportable details relating to a person conducting a transaction who is not the customer, as a result of recent industry consultation. A public consultation period is open from 18 June 2010 to 2 July 2010.
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 is open from 17 June 2010 to 30 June 2010.
Draft amendments to Chapter 15 of the AML/CTF Rules (PDF, 53KB)
Chapter 15 of the AML/CTF Rules deals with ongoing customer due diligence. The Financial Action Task Force (FATF) has raised issues in regard to Chapter 15, particularly in relation to perceived discretionary action which a reporting entity may undertake in high money laundering and terrorism financing risk situations. AUSTRAC considers that an amendment to Chapter 15 is warranted in order to address the FATF concerns. A public consultation period was open from 13 April 2010 to 30 April 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 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.
