Paragraph 1.2.1 of the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) (AML/CTF Rules) contains a definition of 'certified copy' which sets out a list of persons who may certify a document as a true copy of an original.
Reporting entities adopting the 'safe harbour' procedures will be required to ensure that where 'know your customer' (KYC) information is verified using a copy of a primary photographic, non-photographic or secondary document, it is a certified copy.
Reporting entities are not required to adopt the safe harbour procedures. The AML/CTF Rules provide that a reporting entity is not precluded from meeting the relevant applicable customer identification requirements in another way, where the relationship with the customer is of medium or lower money laundering/terrorism financing (ML/TF) risk.
It is AUSTRAC's view that reporting entities that have not adopted the safe harbour procedures may use other persons to certify documents as part of their applicable customer identification procedures under the AML/CTF Rules as part of the risk-based approach.
It is a matter for reporting entities to determine, taking into account the requirements of Part 4.2 of the AML/CTF Rules, what information they need to collect and the methods they should use for collection and verification. This determination should be based on their risk-based systems and controls, having regard to the ML/TF risk that they face in providing the relevant designated service.
Ultimately, the reporting entity needs to be reasonably satisfied that, where a customer is an individual, the customer is the person that he or she claims to be.
AUSTRAC's guidance note Risk management and AML/CTF programs provides general information about risk management frameworks and relevant requirements under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and AML/CTF Rules.
AUSTRAC recommends that reporting entities seek their own independent legal advice about how the AML/CTF Act relates to their circumstances.