Anti-Money Laundering and Counter-Terrorism Financing and Other Legislation Amendment Act 2020 (133 of 2020)

Schedule 1   Amendments

Part 3   Tipping-off offence

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

26   Subsections 123(7) and (7AA)

Repeal the subsections, substitute:

Exception - members of a corporate group

(7) Subsection (1) does not apply to the disclosure of information by a reporting entity (the first entity ) if:

(a) the first entity belongs to a corporate group; and

(b) the information relates to the affairs of a person (the relevant person ) who is, or was, a customer of the first entity or who made inquiries referred to in subparagraph 41(1)(c)(i) of the first entity; and

(c) the disclosure is made to a body corporate (the related body corporate ) that belongs to the corporate group; and

(d) the related body corporate is a reporting entity or is regulated by one or more laws of a foreign country that give effect to some or all of the FATF Recommendations; and

(e) if the related body corporate is regulated by one or more laws of a foreign country that give effect to some or all of the FATF Recommendations - the related body corporate has given the first entity a written undertaking for:

(i) protecting the confidentiality of information that may be disclosed to the related body corporate under this subsection; and

(ii) controlling the use that will be made of the information; and

(iii) ensuring that the information will be used only for the purpose for which it is disclosed to the related body corporate; and

(f) the disclosure is made for the purpose of informing the related body corporate about the risks involved in dealing with the relevant person.

Note: A defendant bears an evidential burden in relation to the matter in subsection (7) (see subsection 13.3(3) of the Criminal Code).

(7AA) A reporting entity to whom information has been disclosed under subsection (7) must not disclose the information unless:

(a) the disclosure is made to another reporting entity that belongs to the corporate group; and

(b) the disclosure is made for the purpose of informing the other reporting entity about the risks involved in dealing with the relevant person.

Exception - members of a designated business group

(7AB) Subsection (1) does not apply to the disclosure of information by a reporting entity (the first entity ) if:

(a) the first entity belongs to a designated business group; and

(b) the information relates to the affairs of a person (the relevant person ) who is, or was, a customer of the first entity or who made inquiries referred to in subparagraph 41(1)(c)(i) of the first entity; and

(c) the disclosure is made to another person (the related person ) that belongs to the designated business group; and

(d) the related person is a reporting entity or is regulated by one or more laws of a foreign country that give effect to some or all of the FATF Recommendations; and

(e) if the related person is regulated by one or more laws of a foreign country that give effect to some or all of the FATF Recommendations - the related person has given the first entity a written undertaking for:

(i) protecting the confidentiality of information that may be disclosed to the related person under this subsection; and

(ii) controlling the use that will be made of the information; and

(iii) ensuring that the information will be used only for the purpose for which it is disclosed to the related person; and

(f) the disclosure is made for the purpose of informing the related person about the risks involved in dealing with the relevant person.

Note: A defendant bears an evidential burden in relation to the matter in subsection (7AB) (see subsection 13.3(3) of the Criminal Code).

(7AC) A reporting entity to whom information has been disclosed under subsection (7AB) must not disclose the information unless:

(a) the disclosure is made to another reporting entity that belongs to the designated business group; and

(b) the disclosure is made for the purpose of informing the other reporting entity about the risks involved in dealing with the relevant person.

Exception - remittance sector