6‑12 Delayed verification—various design6‑12 Delayed verification—various designated services provided in Australia

6‑12 Delayed verification—various designated services provided in Australia

Permitted circumstances (1) For the purposes of paragraph 29(a) of the Act, a reporting entity may commence to provide a designated service to a customer (subject to the requirements of section 29 of the Act and this section) if the designated service is provided at or through a permanent establishment of the reporting entity in Australia. (2) However, subsection (1) does not apply in circumstances where section 6‑13, 6‑14 or 6‑32 applies to the provision of the designated service. Requirements (3) For the purposes of paragraph 29(f) of the Act, it is a requirement for commencing to provide any such designated service that the reporting entity: (a) if the customer is an individual—has taken reasonable steps to establish that the customer is the person the customer claims to be; and (b) has identified the ML/TF risk of the customer, based on KYC information about the customer that is reasonably available to the reporting entity; and (c) has collected KYC information about the customer relating to all matters mentioned in subsection 28(2) of the Act, other than the matters specified in subsection 6‑23(2) of this instrument, that is appropriate to the ML/TF risk of the customer; and (d) has established on reasonable grounds the matters in paragraphs 28(2)(a) and (c) of the Act.

Note: Section 29 of the Act requires that the reporting entity also determines on reasonable grounds that commencing to provide the service is essential to avoid interrupting the ordinary course of business, and that any additional risk of money laundering, terrorism financing or proliferation financing is low, and the reporting entity has and implements AML/CTF policies relating to completing initial customer due diligence and mitigating and managing risks.

(4) For the purposes of paragraph 29(f) of the Act, it is a further requirement for commencing to provide any such designated service that the reporting entity must not, before complying with subsection 28(1) of the Act: (a) transfer, or allow or facilitate the transfer of, money, property or virtual assets for or on behalf of the customer; or (b) otherwise make money, property or virtual assets available to the customer (other than holding the money, property or virtual assets in an account or otherwise on deposit from the customer). Specified period (5) For the purposes of subparagraph 29(c)(ii) of the Act, the specified period is the period ending 20 business days after commencing to provide the designated service to the customer.

Note: In all cases, paragraph 29(c) of the Act requires a reporting entity to have AML/CTF policies to comply with subsection 28(1) of the Act as soon as reasonably practicable after commencing to provide the designated service to the customer.