Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (110 of 2024)

Schedule 1   AML/CTF programs and business groups

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

19   Section 11

Repeal the section, substitute:

10A Key terms relating to reporting groups

Reporting group

(1) A reporting group is:

(a) a business group, where:

(i) at least one person in the group provides a designated service; and

(ii) each member of the group satisfies such conditions (if any) as are specified in the AML/CTF Rules; and

(iii) the group is not of a kind that, under the AML/CTF Rules, is ineligible to be a reporting group to which this paragraph applies; and

(iv) the conditions (if any) relating to changes in membership, dissolution, administration or operation of the group that are specified in the AML/CTF Rules are satisfied; or

(b) a group of 2 or more persons, where:

(i) each member of the group has elected, in writing, to be a member of the group, and the election is in force; and

(ii) each election was made in accordance with the AML/CTF Rules; and

(iii) no member of the group is a member of another group to which this paragraph applies; and

(iv) each member of the group satisfies such conditions (if any) as are specified in the AML/CTF Rules; and

(v) the group is not of a kind that, under the AML/CTF Rules, is ineligible to be a reporting group; and

(vi) the conditions (if any) relating to changes in membership, dissolution, administration or operation of the group that are specified in the AML/CTF Rules are satisfied.

(1A) Subject to subsection (2A), a person may be a member of a group to which paragraph (1)(b) applies even if the person is a member of a group to which paragraph (1)(a) applies.

(1B) The requirement in subparagraph (1)(b)(i) to make a written election does not apply in relation to a member of a group in the circumstances specified in the AML/CTF Rules.

(2) Subparagraph (1)(b)(iii) does not apply in the circumstances specified in the AML/CTF Rules.

(2A) If a person is a member of more than one reporting group, the AML/CTF Rules may specify circumstances in which that person is taken, for the purposes of this Act, to be a member of only one of those reporting groups.

Business groups

(3) A business group is a group of 2 or more persons, where either of the following paragraphs applies:

(a) one person in the group controls each other person in the group;

(b) the group meets the requirements (if any) specified in the AML/CTF Rules.

Members of reporting groups and business groups

(4) Each person in a reporting group or a business group is a member of that group.

Lead entity of a reporting group

(5) The lead entity of a reporting group means the person in the group that is specified in the AML/CTF Rules as the lead entity for the reporting group.

Note: The lead entity of a reporting group is a reporting entity, see the definition of reporting entity in section 5.

11 Meaning of control

(1) Control , of a body corporate, is:

(a) having the capacity to cast, or control the casting of, more than one half of the maximum number of votes that might be cast at a general meeting of the body corporate; or

(b) directly or indirectly holding more than one half of the issued share capital of the body corporate (not including any part of the issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital, and not including mutual capital instruments within the meaning of section 167AD of the Corporations Act 2001); or

(c) having the capacity to control the composition of the body corporate's board or governing body; or

(d) having the capacity to determine the outcome of decisions about the body corporate's financial and operating policies, taking into account:

(i) the practical influence that can be exerted (rather than the rights that can be enforced); and

(ii) any practice or pattern of behaviour affecting the body corporate's financial or operating policies (whether or not it involves a breach of an agreement or a breach of trust).

(2) Control , of a person other than a body corporate, is:

(a) having the capacity to control the composition of the person's board or governing body (if any); or

(b) having the capacity to determine the outcome of decisions about the person's financial and operating policies, taking into account:

(i) the practical influence that can be exerted (rather than the rights that can be enforced); and

(ii) any practice or pattern of behaviour affecting the person's financial or operating policies (whether or not it involves a breach of an agreement or a breach of trust).