From 12 December 2008 reporting entities that provide designated services will be required to monitor customers and their transactions on an ongoing basis. This process is referred to as 'ongoing customer due diligence' (OCDD) and is prescribed under section 36 of the AML/CTF Act.

Your AML/CTF program needs to include systems and procedures for OCDD that reflect the risk-based approach of the legislation.  This means that high-risk situations will require more attention than low-risk situations.

Chapter 15 of the AML/CTF Rules sets out the three main components of OCDD:

1. know your customer (KYC) information
2. transaction monitoring program
3. enhanced customer due diligence program.

OCDD obligations only apply to the provision of designated services at or through a reporting entity's permanent establishment(s) in Australia. OCDD obligations do not apply to a designated service(s) covered by item 54 of table 1 in section 6 of the AML/CTF Act.

OCDD obligations apply in relation to all of a reporting entity's customers who receive designated services including:

• pre-commencement customers (where the reporting entity commenced to provide a designated service before the OCDD obligations came into effect)
• customers of a reporting entity who were indentified (and whose entity was verified) by another reporting entity under the deeming provisions of section 38 of the AML/CTF Act.

In the case of designated business groups, ongoing customer due diligence may be carried out by any member of the group for another member.

Customer due diligence rapid-check worksheet (pdf 31kb)