Following extensive consultation with industry, AUSTRAC has published comprehensive new guidance explaining many of the key terms used in the AML/CTF Rules requirements for customers who may be ‘politically exposed persons’ (PEPs).
The new guidance has been incorporated into Chapter 6 of the AUSTRAC compliance guide (Customer due diligence procedures). The guidance covers:
- the meaning of the term ‘as soon as practicable’ (see the section titled What are the requirements for PEPs?)
- the meaning of a number of key terms used in the AML/CTF Rules, such as ‘prominent public position or function’ and ‘senior government official’
- the interaction between the PEP obligations imposed by the AML/CTF Rules and those imposed by other legislation (such as superannuation legislation)
- reporting entity use of external databases to determine whether a customer or beneficial owner is a PEP (see the section titled What are the requirements for PEPs?)
- the meaning of the term ‘sensitive information’.