2‑2 Reporting group formed by election2‑2 Reporting group formed by election

2‑2 Reporting group formed by election

Conditions on group members (1) For the purposes of subparagraph 10A(1)(b)(iv) of the Act, each member of the group must be: (a) a reporting entity; or (b) a person who discharges obligations imposed on members of the reporting group by the Act, the regulations or the AML/CTF Rules; or (c) a member of a business group. (2) A member of a business group is only permitted to be a member of a group to which paragraph 10A(1)(b) of the Act applies if all members of the business group are also members of the group to which paragraph 10A(1)(b) applies.

Note: If one member of a business group elects to leave a reporting group, the other members of the business group are no longer permitted to be members of the reporting group (and are taken to have elected to also leave—see subsection (9)).

Lead entity (3) For the purposes of subsection 10A(5) of the Act, the lead entity of a reporting group to which paragraph 10A(1)(b) of the Act applies is the member of the group that satisfies the following requirements: (a) the member is not controlled by another member of the reporting group that provides designated services; (b) if the reporting group includes members of one or more business groups—the member is a member of one of those business groups; (c) the other members of the group have agreed to the member having the capacity to determine the outcome of decisions about the AML/CTF policies of the other members; (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. Election to join reporting group (4) For the purposes of subparagraph 10A(1)(b)(ii) of the Act, a person electing to be a member of a reporting group that is already in operation must have obtained the consent of the lead entity of the reporting group.

Note 1: 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.

Note 2: The AML/CTF policies of the lead entity of a reporting group must deal with recording changes of membership—see section 5‑16 of this instrument.

(5) For the purposes of subsection 10A(1B) of the Act, a member of a business group is not required to make an election in writing if another member of the business group has made an election on behalf of, and with the consent of, all members. (6) For the purposes of subparagraph 10A(1)(b)(vi) and subsection 10A(1B) of the Act, if: (a) a person becomes a member of a business group; and (b) the existing members of the business group are members of a reporting group to which paragraph 10A(1)(b) of the Act applies; the person also becomes a member of the reporting group. Conditions for leaving group (7) For the purposes of subparagraph 10A(1)(b)(vi) of the Act, a member of a reporting group (other than the lead entity) that elects to leave the reporting group must give the lead entity notice in writing.