Anti-Money Laundering and Countering Financing of Terrorism Act 2009

Enhanced customer due diligence

22 Circumstances when enhanced customer due diligence applies

(1)

A reporting entity must conduct enhanced customer due diligence in accordance with sections 23 and 24 in the following circumstances:

(a)

if the reporting entity establishes a business relationship with a customer that is—

(i)

a trust or another vehicle for holding personal assets:

(ii)

a non-resident customer from a country that has insufficient anti-money laundering and countering financing of terrorism systems or measures in place:

(iii)

a company with nominee shareholders or shares in bearer form:

(b)

if a customer seeks to conduct an occasional transaction or activity through the reporting entity and that customer is—

(i)

a trust or another vehicle for holding personal assets:

(ii)

a non-resident customer from a country that has insufficient anti-money laundering and countering financing of terrorism systems or measures in place:

(iii)

a company with nominee shareholders or shares in bearer form:

(c)

if a customer seeks to conduct, through the reporting entity, a complex, unusually large transaction or unusual pattern of transactions that have no apparent or visible economic or lawful purpose:

(d)

when a reporting entity considers that the level of risk involved is such that enhanced due diligence should apply to a particular situation:

(e)

any other circumstances specified in section 22A or regulations.

(2)

A reporting entity must conduct enhanced customer due diligence in accordance with section 26 if—

(a)

it establishes a business relationship with a customer who it has determined is a politically exposed person; or

(b)

a customer who it has determined is a politically exposed person seeks to conduct an occasional transaction or activity through the reporting entity.

(3)

A reporting entity must conduct enhanced customer due diligence in accordance with sections 27 and 28 if it is an ordering institution, an intermediary institution, or a beneficiary institution in relation to a wire transfer.

(4)

A reporting entity must conduct enhanced customer due diligence in accordance with section 29 if it has, or proposes to have, a correspondent banking relationship.

(5)

A reporting entity must conduct enhanced due diligence in accordance with section 30 if—

(a)

it establishes a business relationship with a customer that involves new or developing technologies, or new or developing products, that might favour anonymity; or

(b)

a customer seeks to conduct an occasional transaction or activity through the reporting entity that involves new or developing technologies, or new or developing products, that might favour anonymity.

(6)

Despite subsections (1) to (5), a real estate agent must conduct enhanced customer due diligence at the times, in the circumstances, and with any other modifications specified in regulations.

Section 22(1)(b): amended, on 11 August 2017, by section 68 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).

Section 22(1)(e): amended, on 11 August 2017, by section 13(1) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).

Section 22(2)(b): amended, on 11 August 2017, by section 68 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).

Section 22(5)(b): amended, on 11 August 2017, by section 68 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).

Section 22(6): inserted, on 11 August 2017, by section 13(2) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).