Explanatory statements relating to amendments to the AML/CTF Rules are set out below, organised by category:

• Definitions
• Designated services – specification of persons by AML/CTF Rules
• Customer identification
• Customer due diligence
• AML/CTF programs
• Reporting obligations
• Remittance Sector Register
• Reporting Entities Roll
• Digital Currency Exchange Register
• Record-keeping
• Exemptions

Definitions

Chapter 1

• Key terms and concepts (explanatory statement)
• 'Accredited translator' definition inserted (explanatory statement)
• Expanded list of who can certify documents (explanatory statement)
• Expanded list of who can certify documents - Australian credit licence holders (explanatory statement)
• Minor amendments (explanatory statement)
• Inserted definitions of 'Australian Government Entity', 'politically exposed person', 'reasonable measures' and 'senior managing official'. Amended definition of 'beneficial owner' (explanatory statement)
• Expanded list of who can certify documents - Notary public in a foreign country (explanatory statement)
• Amends definitions of ‘primary non-photographic identification document’, 'primary photographic identification document’ and ‘secondary identification document’ (explanatory statement)
• Expands the list of persons who can provide certified copies of documents to include a person in a foreign country who is authorised by law in that jurisdiction to administer oaths or affirmations or to authenticate documents (explanatory statement)
• Amends definition of ‘certified copy’ (explanatory statement)

Chapter 2

• 'Designated business group' definition (explanatory statement)
• Expanded to include accountancy and law practices (explanatory statement)
• Expanded to include money transfer service providers (explanatory statement)

Chapter 3.2

• Definition of 'correspondent banking' (explanatory statement)

Chapter 4

• Inserted definitions of ‘custodian’, ‘IDPS’, MDA service’, ‘providing a custodial or depository service’ and ‘Reporting Entities Roll’ to Part 4.4 (explanatory statement)

Chapter 13

• 'Approved third-party bill payment system' definition (explanatory statement)

Chapter 40

• Definition of 'exempt legal practitioner service' (explanatory statement)

Chapter 80

• Definition of stored value card (explanatory statement)

Designated services – specification of persons by AML/CTF Rules

Chapter 71

• 'Non-ADI credit card issuers and acquirers' relevant to items 1, 2, and 3 in Table 1 (explanatory statement)

Customer identification

Chapter 3

• Correspondent banking (explanatory statement)

Chapter 4

• Customer identification (explanatory statement)
• Amendments relating to customer due diligence (explanatory statement)

• Exemptions relating to beneficial owners and politically exposed persons (explanatory statement) 

• Amendments relating to customer due diligence – collecting information from other than the customer (explanatory statement)

• Expands the exemptions for identification of beneficial ownership (explanatory statement)

• Adds Part 4.15 which sets out procedures for reporting entities to follow in certain limited and exceptional circumstances where a customer is unable to provide satisfactory evidence of their identity (explanatory statement)

• Amendments to the table at paragraph 4.14.1 (explanatory statement)

• Minor amendments to subparagraphs 4.4.2, 4.4.3(1), 4.4.5(1) and 4.4.9, and adds new subparagraphs 4.4.3(5)(d), 4.4.5(5)(d) and paragraphs 4.4.18 - 4.4.19 to provide reporting entities with relief from certain identification and verification requirements in relation to custodian customers (explanatory  statement)

   

Chapter 6

• Verification of customer identification (explanatory statement)

Chapter 7

• Customer identification deemed to have been carried out by a reporting entity (explanatory statement)

Chapter 30

• Disclosure certificates (explanatory statement)
• Amendments relating to beneficial owners (explanatory statement)

Chapter 79

• Carrying out applicable customer identification after commencing to open a bank account (explanatory statement)

Chapter 82

• Carrying out applicable customer identification after commencing to open an online gambling account (explanatory statement)

Customer due diligence

Chapter 15

• Ongoing customer due diligence (explanatory statement)
• Minor amendment (explanatory statement)
• Amendments including requirements for high-risk, prescribed foreign countries and defining ultimate beneficial ownership (explanatory statement)
• Amendments relating to politically exposed persons and beneficial owners (explanatory statement)
• Amendments to provide reporting entities with relief from certain ongoing customer due diligence requirements in relation to custodian customers (explanatory statement)

AML/CTF programs

Chapter 5

• Special AML/CTF programs (explanatory statement)
• Amendments relevant to legal powers (explanatory statement)

Chapter 8

• Standard AML/CTF programs (explanatory statement)
• Stating AML/CTF Act reporting obligations (explanatory statement)
• Amendments relevant to legal powers and program requirements (explanatory statement)
• Additional reporting requirements (explanatory statement)
• Amends the identification, mitigation and management of money laundering and terrorism financing risks (explanatory statement)
• Amends Part 8.6 to guarantee the independence of the reviewer of AML/CTF programs (explanatory statement)
• Amendments to require the incorporation of guidance on ML/TF risks provided by AUSTRAC into AML/CTF programs (explanatory statement)

Chapter 9

• Joint AML/CTF programs (explanatory statement)
• Stating AML/CTF Act reporting obligations (explanatory statement)
• Amendments relevant to legal powers and program requirements (explanatory statement)
• Additional reporting requirements (explanatory statement)
• Amends the identification, mitigation and management of money laundering and terrorism financing risks (explanatory statement)
• Amends Part 9.6 to guarantee the independence of the reviewer of AML/CTF programs (explanatory statement)
• Amendments to require the incorporation of  guidance on ML/TF risks provided by AUSTRAC into AML/CTF programs (explanatory statement)

Reporting obligations

Compliance reports

Chapter 11

• Reporting and lodgement periods (explanatory statement)
• Reporting and lodgement periods for 2008 (explanatory statement)
• Reporting and lodgement periods for 2009 (explanatory statement)
• Reporting and lodgement periods for 2010 and ongoing (explanatory statement)
• Exemptions for reporting entities providing specified remittance services (2011) (explanatory statement)
• Exemptions for reporting entities providing specified remittance services (2012) (explanatory statement)
• Exemptions for reporting entities providing specified remittance services (2013) (explanatory statement)
• Exemptions for reporting entities providing specified remittance services (2014) (explanatory statement)
• Exemptions for reporting entities providing specified remittance services (2015) (explanatory statement)
• Exemptions for reporting entities providing specified remittance services (2016) (explanatory statement)

International funds transfer instruction (IFTI) reports

Chapter 16

• Reportable details for electronic funds transfer instructions (explanatory statement)
• Minor amendment (explanatory statement)
• Requirements for 'batched' instructions' (explanatory statement)

Chapter 17

• Reportable details for designated remittance arrangements (explanatory statement)
• Minor amendment (explanatory statement)
• IFTI-DRA requirements (explanatory statement)
• Amendments relating to 'non-financiers', account details and identifiers (explanatory statement)

Chapter 51

• Reporting obligations for KEB, Travelex GBP, PayPal Pte Ltd and PayPal Inc (explanatory statement)
• Clarifies company details (explanatory statement)
• PayPal related amendments (explanatory statement)
• Clarifies company details (explanatory statement)
• PayPal Hong Kong Limited related amendments (explanatory statement)

Chapter 72

• Account-based money transfer systems for MoneyGram and Western Union (explanatory statement)

Threshold transaction reports (TTRs)

Chapter 19

• Reportable details (explanatory statement)
• Minor amendments (explanatory statement)
• Amends threshold transaction requirements (explanatory statement)
• Minor amendments (explanatory statement)
• Amends threshold transaction requirements including the specification of 'agent' details (explanatory statement)
• Amends threshold transaction requirements relating to item 51 and 53 designated services (explanatory statement)
• Minor amendments (explanatory statement)
• Deletes threshold requirements relating to item 51 and 53 designated services (explanatory statement)
• Adds requirements relating to transactions involving digital currency (explanatory statement)

Chapter 37

• Reportable details for authorised deposit-taking institutions (explanatory statement)
• Deletes threshold requirements relating to item 51 and 53 designated services (explanatory statement)

Suspicious matter reports (SMRs)

Chapter 18

• Reportable details (explanatory statement)
• Amendments to reportable details (explanatory statement)
• Minor amendment (explanatory statement)
• Adds requirements relating to transactions involving digital currency (explanatory statement)

Cross-border movement notices

Chapter 34

• Written notices relating to cross-border movement reporting (explanatory statement)
• Consequential legislative amendments (explanatory statement)

Reports relating to movements of currency (coin and printed money) and bearer negotiable instruments (CBM-PCs and CBM-BNIs)

Chapter 24

• Currency into or out of Australia (explanatory statement)

Chapter 25

• Receipt of currency in Australia from outside Australia (explanatory statement)

Chapter 26

• Bearer negotiable instruments into and out of Australia (explanatory statement)

Remittance Sector Register

Chapter 27

• Registrable details relating to the Register of Providers of Designated Remittance Services and the Remittance Sector Register (explanatory statement)
• Registrable details for the Remittance Sector Register (explanatory statement)
• Amendments relating to definitions (explanatory statement)

Chapter 44

• Removal of reporting entities from the Register of Providers of Designated Remittance Services (explanatory statement)

Chapter 54

• Reporting obligations of registered remittance affiliates (explanatory statement)

Chapter 55

• Correction of entries on the Remittance Sector Register (explanatory statement)

Chapter 56

• Information to be included in an application for registration by a reporting entity (explanatory statement)
• Requires contact details of applicant (explanatory statement)
• Amendments to requirements for trusts (explanatory statement)
• Amendments regarding National Police History Check (NPHC) (explanatory statement)
• Amendments including in relation to key personnel and definitions (explanatory statement)
• Amendment to definitions (explanatory statement)

Chapter 57

• Applications for registration - matters to be considered by the AUSTRAC CEO (explanatory statement)
• Amendments to include matters specified in the AML/CTF Act (explanatory statement)
• Amendments to matters to be considered by AUSTRAC CEO when determining applications for registration (explanatory statement)

Chapter 58

• Cancellation of registration - matters to be considered by the AUSTRAC CEO (explanatory statement)
• Amendments including matters CEO has regard to and relating to definitions (explanatory statement)

Chapter 59

• Suspension of registration - matters to be considered by the AUSTRAC CEO (explanatory statement)
• Amendments including grounds for suspension and relating to definitions (explanatory statement)
• Amendments relating to suspension without prior notice and aligning the grounds for suspension with the grounds for cancelling registrations (explanatory statement)

Chapter 60

• Obligation to inform AUSTRAC CEO of changes in registration details (explanatory statement)
• Amendments including in relation to key personnel and definitions (explanatory statement)
• Amendment to definitions (explanatory statement)

Chapter 61

• Reporting obligations of remittance affiliates - transitional arrangements (explanatory statement)

Chapter 70

• Renewal of registration (explanatory statement)
• Amendments to matters to be considered by AUSTRAC CEO when determining applications for renewal of registration (explanatory statement)

Reporting Entities Roll

Chapter 62

• Correction of entries on the Reporting Entities Roll (explanatory statement)

Chapter 63

• Information to be included in an application for enrolment by a reporting entity (explanatory statement)
• Amendments to information required (explanatory statement)
• Amendments relevant to partnerships and trusts (explanatory statement)
• Amendments to definition (explanatory statement)
• AUSTRAC Industry Contribution consequential amendments (explanatory statement)

Chapter 64

• Obligation to inform AUSTRAC CEO of changes in enrolment details (explanatory statement)

Chapter 65

• Removal of entries from the Reporting Entities Roll (explanatory statement)
• Amendments to definition (explanatory statement)
• AUSTRAC Industry Contribution consequential amendments (explanatory statement)

Digital Currency Exchange Register

Chapter 76

• Information to be included in an application for registration and registrable details relating to the Digital Currency Exchange Register
• Renewal of registration procedures
• Suspension of registration – matters to be considered by the AUSTRAC CEO
• Cancellation of registration – matters to be considered by the AUSTRAC CEO
• Obligation to inform AUSTRAC CEO of changes in registrable details
• Correction of entries on the Digital Currency Exchange Register  (explanatory statement)

Record-keeping

Chapter 20

• Records of customer identification deemed to have been carried out by a reporting entity (explanatory statement)

Chapter 29

• Records which do not need to be retained by reporting entities (explanatory statement)
• Extending exemption to CCTV footage and electronic files (explanatory statement)

Chapter 68

• Form in which records of customer identification procedures are to be kept (explanatory statement)

Exemptions

Full exemptions from the AML/CTF Act

Chapter 22

• Over-the-counter derivatives market relating to electricity, gas and renewable energy certificates (explanatory statement)
• Exemption broadened (explanatory statement)

Chapter 31

• Traveller accommodation foreign currency exchange transactions (explanatory statement)

Chapter 32

• Safe deposit boxes or similar facilities (explanatory statement)

Chapter 36

• Designated services provided within corporate structures (explanatory statement)
• Extends the circumstances in which the exemption applies to include partnerships where justified by ML/TF risk. It excludes ‘limited partnerships’ (explanatory statement)

Chapter 42

• Commodity warehousing of grain (explanatory statement)

Chapter 43

• Friendly society closed funds (explanatory statement)

Chapter 47

• Risk-only life policy interests in a superannuation fund (explanatory statement)

Chapter 48

• Salary packaging administration services (explanatory statement)

Chapter 73

• Registered Plan Management Providers under the NDIS (explanatory statement)

Partial exemptions from the AML/CTF Act

Chapter 10

• Gambling services - casinos, oncourse bookmakers, Totalisator agency boards, gaming machines and online gaming services (explanatory statement)
• Adds references to items 7 and 8 designated services of Table 3 in subsection 6(4) of the AML/CTF Act (explanatory statement)

Chapter 11

• 2011 compliance reporting for providers of designated remittance services under designated service items 31 and 32 of the AML/CTF Act (explanatory statement)
• 2012 compliance reporting for registered remittance affiliates or registered remittance network providers providing only designated service items 31, 32 or 32A of the AML/CTF Act (explanatory statement)
• 2013 compliance reporting for registered remittance affiliates or registered remittance network providers providing only designated service items 31, 32 or 32A of the AML/CTF Act (explanatory statement)
• 2014 compliance reporting for registered remittance affiliates or registered remittance network providers providing only designated service items 31, 32 or 32A of the AML/CTF Act (explanatory statement)
• 2015 compliance reporting for registered remittance affiliates or registered remittance network providers providing only designated service items 31, 32 or 32A of the AML/CTF Act (explanatory statement)
• 2016 compliance reporting for registered remittance affiliates or registered remittance network providers providing only designated service items 31, 32 or 32A of the AML/CTF Act (explanatory statement)

Chapter 12

• Electronic funds transfer instructions involving the use of a credit card (explanatory statement)
• Deletes paragraph 12.3 to remove reference to ‘e-currency’ (explanatory statement)

Chapter 14

• Customer identification procedures relating to cheques (explanatory statement)
• Increasing specified thresholds (explanatory statement)

Chapter 21

• Issuing or selling a security or derivative (explanatory statement)
• Extension of exemption to foreign financial markets (explanatory statement)

Chapter 23

• Exemption for lawyers and accountants from designated remittance arrangements (explanatory statement)
• 'Accounting' and 'law practices' specified as being 'non-financiers' (explanatory statement)

Chapter 28

• Customer identification for assignment, conveyance, sale or transfer of business (explanatory statement)
• Amendments regarding application to a voluntary transfer of business (explanatory statement)

Chapter 29

• Records which are exempt from record-keeping (original explanatory statement and amendment explanatory statement)

Chapter 33

• Sales of bullion less than AUD5000 (explanatory statement)

Chapter 35

• Correspondent banking relationships (explanatory statement)

Chapter 38

• Sale of shares for charitable purposes (explanatory statement)
• Consequential legislative amendments (explanatory statement)
• Increase in the threshold from A$500 to A$10000 (explanatory statement)
• Amends subparagraph 38.2(4)(a) to remove the requirement for an ancillary fund to distribute the proceeds of the disposal of the security to a deductible gift recipient “before the end of the financial year in which it receives the proceeds” (explanatory statement)

Chapter 39

• Premium funding loans for general insurance policies (explanatory statement)
• Extension to 30 June 2012 (explanatory statement)
• Repeal of sunset clause (explanatory statement)

Chapter 41

• Cashing out of low balance superannuation accounts (explanatory statement)
• Departing Australia Superannuation Payments (DASP) (explanatory statement)

Chapter 45

• Debt collectors (explanatory statement)
• Deletes references to item 51 and 53 designated services (explanatory statement)

Chapter 46

• Customer identification after commencement of a designated service (explanatory statement)

Chapter 49

• International Uniform Give-Up Agreements (explanatory statement)

Chapter 50

• Pre-commencement customers in designated business groups (explanatory statement)

Chapter 52

• Licensed gaming machine operators - 15 machines or less (explanatory statement)

Chapter 53

• Threshold transaction reporting relating to Australian Government Entities and Authorised Deposit-Taking Institutions (explanatory statement)
• Chapter repealed (explanatory statement)

Chapter 66

• Customer identification requirements for compulsory transfers under the Financial Sector (Business Transfer and Group Restructure) Act 1999 (explanatory statement)

Chapter 67

• Warrants (explanatory statement)

Chapter 69

• Registration on the Remittance Sector Register for casino licence holders (explanatory statement)

Chapter 74

• Licensed trustee companies (explanatory statement)
• Deletes references to item 51 and 53 designated services (explanatory statement)

Chapter 75

• Law enforcement operations (explanatory statement)

Chapter 77

• Exemption from the applicable customer identification procedure for the purposes of Schedule 13 to the Coronavirus Economic Response Package Omnibus Act 2020 (explanatory statement)