2‑1 Reporting group that is a business g

2‑1 Reporting group that is a business group

Business group that is ineligible (1) For the purposes of subparagraph 10A(1)(a)(iii) of the Act, a business group is ineligible to be a reporting group if: (a) a member of the business group that is a reporting entity gives the other reporting entities in the group notice in writing that the member declines to be a member of a reporting group; and (b) the notice by the member has not been withdrawn by further notice in writing to the other reporting entities in the group; and (c) the member that gave the notice continues to be a reporting entity.

Note: A person enrolled under Part 3A of the Act (Reporting Entities Roll) is required to advise of changes in the person’s enrolment details, including whether the person is a member of a reporting group—see subsection 51F(1) of the Act and subsection 3‑3(8) and section 3‑9 of this instrument.

(1A) A notice given by a reporting entity for the purposes of subsection (1) is taken to be effective if the reporting entity has taken reasonable steps to ensure it is given to all the other reporting entities in the business group, and is not invalid merely because a particular reporting entity did not receive the notice. Lead entity (2) For the purposes of subsection 10A(5) of the Act, the lead entity of a reporting group to which paragraph 10A(1)(a) of the Act applies must satisfy the following requirements: (a) the member is: (i) the member of the reporting group that the members of the group that themselves satisfy paragraphs (b) and (d) of this subsection have agreed, in writing, will be the lead entity of the group; or (ii) appointed in writing by the person in the business group that controls each other person in the group to be the lead entity of the reporting group; (b) the member is not controlled by another member of the group that provides designated services; (c) the member has the capability and authority (including by consent of group members) to develop and maintain the AML/CTF policies required by reporting entities in the group; (d) the member is one of the following: (i) a body corporate incorporated in Australia; (ii) a registered foreign company within the meaning of the Corporations Act 2001; (iii) a trust that has at least one trustee that is a resident of Australia; (iv) if the member is not a body corporate, foreign company or trust—a resident of Australia. Conditions for operation of reporting group (3) For the purposes of subparagraph 10A(1)(a)(iv) of the Act: (a) a reporting group must not operate without a lead entity for a continuous period of more than 28 days; and (b) during any such period, each member of the reporting group that is a reporting entity must continue to comply with the AML/CTF policies of the most recent lead entity of the group (the previous lead entity) that applied to the member immediately before the previous lead entity ceased to be the lead entity of the group.