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).
The following AML/CTF Rules instruments are not consolidated into the compilation and contain:
Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2009 (No.1)
- customer identification procedures under business restructures
View the explanatory statement for the above instrument.
Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2009 (No.2)
- records which are exempt under section 107
- contents of disclosure certificates
- exemption of certain types of foreign currency exchange transactions
- exemption of certain types of transactions for safe deposit boxes or similar facilities
- customer identification procedures for sales of bullion less than $5,000
- notices about cross-border movement reporting obligations
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 AML/CTF Rules for 'exempt legal practitioner service'
File size 51 Kb
These draft AML/CTF Rules define the term 'exempt legal practitioner service' under section 5 of the AML/CTF Act, and apply to legal practitioners who provide designated services relating to 'a custodial or depository service' (item 46) and 'a safe deposit box or similar facility' (item 47), when undertaken in the ordinary course of legal practice, but do not apply when those designated services are provided by a legal practitioner who supplies financial services under the Act. A public consultation period was open from 22 May 2009 to 8 June 2009.
Draft AML/CTF Rules relating to the sale of shares for charitable purposes
File size 48 Kb
These draft AML/CTF Rules exempt from the customer identification provisions of the AML/CTF Act, those persons who provide an item 33 designated service involving the disposal of low-value parcels of shares, for the purpose of passing the proceeds to charitable organisations who are deductible gift recipients under the Income Tax Assessment Act 1997. A public consultation period was open from 23 April 2009 to 7 May 2009.
Draft AML/CTF Rules to exempt certain reporting entities from threshold transaction reporting
File size 48 Kb
These draft AML/CTF Rules exempt certain reporting entities from providing threshold transaction reports, if those threshold transactions take place wholly between authorised deposit-taking institutions (ADIs) or Exchange Settlement Account holders, or between the Reserve Bank of Australia and Exchange Settlement Account holders, or cash logistic carriers who provide item 51 or item 53 designated services under table 1 in subsection 6(2) of the AML/CTF Act, where these designated services relate wholly to a transaction between one ADI and another ADI. A public consultation period was open from 11 March 2009 to 25 March 2009.
Draft AML/CTF Rules amending the definitions of 'certified copy' and 'certified extract' in Chapter 1 of the Rules
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These AML/CTF Rules amend the definitions of 'certified copy' and 'certified extract' contained in Chapter 1 of the AML/CTF Rules, by increasing the list of persons who can certify documents and extracts of documents as being true copies of original documents. A public consultation period was open from 5 March 2009 to 19 March 2009.
Draft AML/CTF Rules setting special circumstances for the applicable customer identification procedure
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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.
Draft AML/CTF Rules amending Chapter 1 of the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1)
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These draft AML/CTF Rules insert a definition of 'accredited translator' into Chapter 1 (Key terms and concepts) of the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1). They also make a minor technical amendment to Chapter 1 to apply the key terms and concepts to the Rules in their entirety. A public consultation period was open from 19 December 2008 until 30 January 2009.
Draft AML/CTF Rules relating to premium funding loans for a general insurance policy
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These draft AML/CTF Rules relate to insurance premium funding for general insurance, which involves a loan to a customer to buy insurance from an insurer, where the lender and the insurer are not the same entity. Reporting entities that provide insurance premium funding for general insurance are exempt from performing the applicable customer identification procedure under section 32 of the AML/CTF Act as a result of these Rules, unless the loan is cashed out or redeemed before the expiration of the term of the loan. A public consultation period was open from 19 December 2008 to 30 January 2009.
Draft AML/CTF Rules relating to applicable customer identification procedures for correspondent banking relationships
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These draft AML/CTF Rules relate to vostro accounts. Potentially a large number of individuals may give instructions for the operation of such accounts. Because of this, it is not feasible for financial institutions to carry out applicable customer identification procedures each time an employee of another financial institution (which is the account holder), is added as a signatory to a vostro account. These draft AML/CTF Rules will exempt financial institutions from the requirement to carry out the applicable customer identification procedures for signatories to the account in certain circumstances. A public consultation period was open from 11 December 2008 to 9 January 2009.
Draft AML/CTF Rules amending the definition of 'designated business group' to allow law and accounting practices
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These draft AML/CTF Rules broaden the Chapter 2 definition of 'designated business group' to allow law and accounting practices, subject to certain conditions, to form designated business groups. A public consultation period was open from 12 November 2008 to 26 November 2008.
Draft AML/CTF Rules for corporate treasuries
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These draft AML/CTF Rules are intended to cover 'corporate treasury' functions provided within corporate groups and to remove unnecessary financial and administrative burden in cases where a corporate treasury can in practical terms be said to lending to 'itself'. Under these Rules, reporting entities which fulfil the specified criteria are exempt from the AML/CTF Act. A public consultation period was open from 29 September 2008 to 10 October 2008.
Submissions on draft AML/CTF Rules should be sent to:
General Manager
Regulatory Policy
AUSTRAC
PO Box 5516
WEST CHATSWOOD NSW 1515
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.
