Anti-Money Laundering and Countering Financing of Terrorism Act 2009

Reliance on third parties

32 Reliance on member of designated business group

(1)

A reporting entity (member A) that is a member of a designated business group may—

(a)

rely on another member of the group (member B) to conduct any customer due diligence procedures required for customer due diligence under this Act or regulations as long as—

(i)

any identity information is given to member A by member B before member A establishes a business relationship or an occasional transaction or activity is conducted; and

(ii)

any verification information is given to member A by member B as soon as practicable on request by the reporting entity, but within 5 working days of the request, after the business relationship is established or the occasional transaction or activity is conducted:

(b)

adopt that part of an AML/CFT programme of another member of the group that relates to record keeping, account monitoring, ongoing customer due diligence, and annual reporting and share and use the procedures, policies, and controls relating to those parts of the programme subject to any conditions prescribed by regulations:

(c)

use another member of the group’s risk assessment if that risk assessment is relevant to member A’s business:

(d)

make a suspicious activity or prescribed transaction report on behalf of any other member or all members of the designated business group.

(1A)

A reporting entity (member A) that is a member of a designated business group may rely on another member of the group (member B) to make prescribed transaction reports under this Act or regulations.

(2)

Despite subsection (1), a reporting entity, and not the member of the designated business group relied on by the reporting entity, is responsible for ensuring that it is complying with this Act and regulations.

(3)

An AML/CFT supervisor for a reporting entity that is part of a designated business group may require the reporting entity to undertake its own risk assessment or develop its own AML/CFT programme if the AML/CFT supervisor is of the view that the risk assessment or AML/CFT programme being, or proposed to be, relied on by the reporting entity is not appropriate for that entity.

(4)

This section is subject to section 36, which relates to the protection of personal information.

Compare: Anti-Money Laundering and Counter-Terrorism Financing Act 2006 s 36(4) (Aust)

Section 32(1)(a)(i): 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 32(1)(a)(ii): amended, on 11 August 2017, by section 21(1) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).

Section 32(1)(a)(ii): 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 32(1)(d): amended, on 11 August 2017, by section 21(2) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).

Section 32(1A): inserted, on 11 August 2017, by section 21(3) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).