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

Schedule 1   Amendments

Part 1   Identification procedures

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

5   After section 37

Insert:

37A Reliance on applicable customer identification procedures or other procedures - agreements or arrangements

(1) This section applies if:

(a) a reporting entity (the first entity ) enters into a written agreement or arrangement with another person relating to the first entity's reliance on applicable customer identification procedures, or other procedures of a kind prescribed by the AML/CTF Rules, carried out by the other person; and

(b) at the time of entering into the agreement or arrangement, the first entity had reasonable grounds to believe that each of the requirements prescribed by the AML/CTF Rules were met.

(2) If:

(a) the agreement or arrangement is in force; and

(b) the first entity has complied with section 37B in relation to the agreement or arrangement; and

(c) the first entity is providing, or proposes to provide, a designated service to a customer; and

(d) under the agreement or arrangement, the first entity has obtained information about the identity of that customer from the other party to the agreement or arrangement; and

(e) the requirements prescribed by the AML/CTF Rules are satisfied;

this Act (other than Part 10) has effect as if the first entity had carried out the applicable customer identification procedure in respect of that customer and that designated service.

(3) If:

(a) the agreement or arrangement is in force; and

(b) after completing an assessment under section 37B in relation to the agreement or arrangement, the first entity does not have reasonable grounds to believe that each of the requirements prescribed by the AML/CTF Rules for the purposes of paragraph (1)(b) is being met;

then subsection (2) does not apply in relation to the first entity and the agreement or arrangement in connection with the carrying out of procedures covered by paragraph (1)(a) after the completion of that assessment.

(4) Subsection (3) ceases to apply once the first entity has reasonable grounds to believe that each of the requirements prescribed by the AML/CTF Rules for the purposes of paragraph (1)(b) is being met.

37B Regular assessments of agreement or arrangement covered by section 37A

(1) If a reporting entity enters into an agreement or arrangement of a kind referred to in subsection 37A(1), then, while the agreement or arrangement is in force, the reporting entity must:

(a) carry out assessments in accordance with the AML/CTF Rules; and

(b) carry out those assessments at the times worked out in accordance with the AML/CTF Rules; and

(c) prepare a written record of each assessment within 10 business days after the day of completing the assessment.

Civil penalty

(2) Subsection (1) is a civil penalty provision.