Two or more reporting entities that have agreed to form a group (the designated business group) to share the administration of some or all of their AML/CTF obligations (such as an AML/CTF program or record-keeping). Any member of the group can fulfil some of the obligations for the other members. However each reporting entity is still ultimately responsible for meeting its own AML/CTF obligations.
DBGs can only be formed by:
- related companies
- joint ventures
- accounting practices that are reporting entities
- legal practices that are reporting entities
- registered remittance service providers.
An entity can only be a member of one designated business group at a time. The group agreement must be in writing.
See
AML/CTF Act 2006 section 5
AML/CTF Rules 2007 chapter 2, part 2.1