Yesterday, the Australian Transaction Reports and Analysis Centre (AUSTRAC) released changes to the Anti Money Laundering and Counter Terrorism Finance (AML/CTF) Rules which propose to address deficiencies previously identified by the Financial Action Task Force.

AUSTRAC has previously called for submissions through its discussion paper: Consideration of possible enhancements to the requirements for customer due diligence which was released for public consultation in May 2013.

AUSTRAC has now released its draft AML/CTF Rules, which are based on the discussion paper, for further submissions. The changes to the AML/CTF Rules can be accessed here. The changes that are proposed by AUSTRAC relate to customer due diligence requirements and include the following:

  1. Changes to the procedures for customer identification and verification and ongoing customer due diligence which include changes to risk matters that reporting entities must consider when providing a designated service to a customer. The changes to customer identification and verification capture beneficial owners, including settlors of trusts.
  2. Updated the record keeping obligations of reporting entities and requiring reporting entities to understand the control structure of their customers.
  3. A requirement to conduct ongoing customer due diligence, and introducing a new requirement to review and update customer records in relation to the identification of customers and their beneficial owners.

AUSTRAC is seeking submission of the changes to the AML/CTF Rules. Submissions close on 10 January 2014.