Skip to main content

Draft AML/CTF Rules now open for consultation

30 July 2021

AUSTRAC has released draft Anti-Money Laundering and Counter-Terrorism Financing Rules (AML/CTF Rules) for public consultation.

The draft proposes to add Chapters 79 and 80, and amend Chapters 21 and 48 of the AML/CTF Rules.

Summary of proposed amendments

Chapter 79 will allow financial institutions to carry out applicable customer identification procedures on a customer after opening an account, provided no transaction – other than an initial deposit made at the time of the account opening – is conducted in relation to the account. This includes any person purporting to act on behalf of the customer and any beneficial owner of the customer.

Chapter 80 proposes to exclude certain types of products, which are unintentionally captured by the definition of a Stored Value Card in the AML/CTF Act. The definition of a Stored Value Card was amended in 2017 to provide clarity to industry on what constitutes a Stored Value Card, and ensured that the definition remained broad, inclusive and flexible to cover virtual cards.

Proposed amendments to Chapter 21 will exempt the issue of an interest in a litigation funding scheme. A litigation funding scheme is an arrangement where a group of plaintiffs, a law firm and a litigation funder collaborate to pursue a class action.

Proposed amendments to Chapter 48 include exemptions of salary packaging administration services. It expands the current exemption for providing salary packaging services to also include payroll and superannuation clearance services.

Have your say on the draft Rules

Consultation on the draft Rules is open until Friday 27 August 2021.

To download the draft Rules and Explanatory Note, and make a submission, see Current consultations.