ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ACT 2006 - SECT 36 Ongoing customer due diligence

ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ACT 2006 - SECT 36

  (1)   A reporting entity must:

  (a)   monitor the reporting entity's customers in relation to the provision by the reporting entity of designated services at or through a permanent establishment of the reporting entity in Australia, with a view to:

  (i)   identifying; and

  (ii)   mitigating; and

  (iii)   managing;

    the risk the reporting entity may reasonably face that the provision by the reporting entity of a designated service at or through a permanent establishment of the reporting entity in Australia might (whether inadvertently or otherwise) involve or facilitate:

  (iv)   money laundering; or

  (v)   financing of terrorism; and

  (b)   do so in accordance with the AML/CTF Rules.

Civil penalty

  (2)   Subsection   (1) is a civil penalty provision.

Exemption

  (3)   This section does not apply to a designated service covered by item   54 of table 1 in section   6.

Note:   Item   54 of table 1 in section   6 covers a holder of an Australian financial services licence who arranges for a person to receive a designated service.

Designated business groups

  (4)   If a reporting entity is a member of a designated business group, the obligation imposed on the reporting entity by subsection   (1) may be discharged by any other member of the group.

Registered remittance affiliates

  (5)   If an obligation is imposed by subsection   (1) on a reporting entity in its capacity as a registered remittance affiliate of a registered remittance network provider, the obligation may be discharged by the registered remittance network provider.