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:
- 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.
- Updated the record keeping obligations of reporting entities and requiring reporting entities to understand the control structure of their customers.
- 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.