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

31   After section 94

Insert:

94A Shell banks

(1) A shell bank is a corporation that:

(a) is incorporated in a foreign country; and

(b) is authorised to carry on banking business in its country of incorporation; and

(c) does not have a physical presence in its country of incorporation; and

(d) is not an affiliate of another corporation that:

(i) is incorporated in a particular country; and

(ii) is authorised to carry on banking business in its country of incorporation; and

(iii) has a physical presence in its country of incorporation.

When a corporation has a physical presence in a country

(2) For the purposes of determining what is a shell bank, a corporation has a physical presence in a country if, and only if:

(a) the corporation carries on banking business at a place in that country; and

(b) at least one full-time employee of the corporation performs banking-related duties at that place.

When a corporation is affiliated with another corporation

(3) For the purposes of determining what is a shell bank, a corporation is affiliated with another corporation if, and only if:

(a) the corporation is a subsidiary of the other corporation; or

(b) at least one individual controls both corporations; or

(c) under the regulations, both corporations are taken to be under common control.