5.1Exemption

5.1 Exemption

For the purposes of subsection 39(3) of the AML/CTF Act, section 28 of that Act does not apply to a designated service if all of the following apply:

(a) the service is covered by item 29 of table 1 in section 6 of the Act;
(b) the provision of the service is an occasional transaction;
(c) the instruction for transfer of value is given by use of a gift card;
(d) the gift card was issued by a reporting entity;
(e) issuing the gift card was not a designated service;
(f) the monetary value stored in connection with the gift card cannot be increased (other than because of a reversal of a payment made using the card or the correction of an error);
(g) no part of the monetary value stored in connection with the gift card may be withdrawn in cash;
(h) the value to be transferred is money;
(i) if the gift card was issued on or after 31 March 2029—the transfer of value is a domestic transfer of value;
(j) if the gift card was issued on or after 30 September 2027—the ordering institution has reasonable grounds to believe that the person responsible for administering the scheme in which the gift card can be used has taken reasonable steps to mitigate and manage the risk that the card will be used as an instrument of money laundering, financing of terrorism or other crimes.

Note: Subsection 63A(4) of the Act sets out circumstances in which a person is not an ordering institution.