Part A of an AML/CTF program only applies to standard and joint programs. Special AML/CTF programs only set out customer identification procedures and apply only to reporting entities holding an Australian financial services licence who arranges for a person to receive a designated service (see item 54 of table 1 in section 6 of the AML/CTF Act).

Under a joint program, if each member of the designated business group is associated with each other, then the approval may be given by the board and senior management of the main holding company of the group. Being a member of a designated business group does not mean you must adopt a joint AML/CTF program if you prefer to have your own standard AML/CTF program.

With a joint AML/CTF program, one person may be appointed as Nominated Contact Officer for the designated business group and be responsible for reporting to the board of directors, collating compliance reports and ensuring that the AML/CTF program applicable to the businesses will meet the expectations of AUSTRAC. Each reporting entity is ultimately responsible for compliance with the law.

Certain obligations under the AML/CTF Act may be discharged by another member of the group, for example:

• conducting ongoing due diligence
• lodging AML/CTF compliance reports with AUSTRAC
• making records of designated services
• retaining transaction records
• making and retaining records of customer identification procedures
• providing and retaining copies of customer identification records regarding procedures deemed to have been carried out
• making and retaining records of AML/CTF programs, including variations.

Each reporting entity is ultimately responsible for their compliance with the law.

The factors relevant to a standard program are also relevant to a joint program. A joint program applies when reporting entities elect to become part of a designated business group. However, it may be necessary to undertake a detailed analysis of the business activities of each reporting entity to identify which components of the joint program may need to be modified to meet the needs of individual members. If businesses belonging to a designated business group set out their AML/CTF compliance reports in a joint report, where information for each member is different, the report would set out information for those individual businesses separately.