39FExemption—intermediary institutions

39F  Exemption—intermediary institutions

 (1) Divisions 1 to 6 do not apply to a designated service covered by item 31 of table 1 in section 6.

Note: Item 31 of table 1 in section 6 deals with an intermediary institution passing on a transfer message in a value transfer chain.

 (2) A reporting entity must monitor its customers, in relation to the provision of a designated service covered by item 31 of table 1 in section 6 at or through a permanent establishment of the reporting entity in Australia, to identify unusual transactions and behaviours of the customers (within the meaning of section 30) that may give rise to a suspicious matter reporting obligation.

 (4) A reporting entity that contravenes subsection (2) commits a separate contravention of that subsection in respect of each designated service that the reporting entity provides to a customer.

8  At the end of section 44 (after the note)

Add:

 (7) Section 43 does not apply to a designated service that is:

 (a) provided by a reporting entity that is an ADI; and

 (b) provided to a customer that is an ADI.

 (8) Section 43 does not apply to a designated service that is:

 (a) provided by a reporting entity that is the holder of an exchange settlement account; and

 (b) provided to a customer that is the holder of an exchange settlement account; and

 (c) provided using the exchange settlement accounts held by the reporting entity and the customer.

9  Section 106

10  Section 107

107  Transaction records to be retained

Retention of records

 (1) If a reporting entity commences to provide, or provides, a designated service to a customer, the reporting entity must retain sufficient records to allow the reconstruction of individual transactions relating to the provision of the designated service to the customer.

 (2) A record under subsection (1) must comply with any requirements specified by the AML/CTF Rules.

Period for which records must be retained

 (3) A person who is or was a reporting entity must retain a record referred to in subsection (1) for a period of 7 years beginning on the day the record is made.

 (4) Subsections (1) and (3) are civil penalty provisions.

 (5) The AML/CTF Rules may specify kinds of records to which this section does not apply.

11  After Part 17A