6‑14 Delayed verification—certain financ6‑14 Delayed verification—certain financial market transactions

6‑14 Delayed verification—certain financial market transactions

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: (a) the designated service is covered by item 33 of table 1 in section 6 of the Act; and (b) the acquisition or disposal is of a security, derivative or foreign exchange contract on a declared financial market (within the meaning of the Corporations Act 2001); and (c) the acquisition or disposal must be performed rapidly due to financial market conditions relevant to the transaction; and (d) the designated service is provided at or through a permanent establishment of the reporting entity in Australia. Requirements (2) For the purposes of paragraph 29(f) of the Act, further requirements for commencing to provide any such designated service are: (a) the designated service must not involve the acquisition of an interest in a managed investment scheme to which section 1019B of the Corporations Act 2001 applies; and (b) the reporting entity must not do any of the following before complying with subsection 28(1) of the Act: (i) accept physical currency or virtual assets to fund the designated service; (ii) permit the customer to transfer, or otherwise part with, proceeds from a disposal of an asset to which the designated service relates; (iii) resell, transfer, or otherwise part with an asset to which the designated service relates that has been acquired on behalf of the customer; (iv) allow the customer to be recredited with, or obtain a refund of, the purchase price. Specified period (3) For the purposes of subparagraph 29(c)(ii) of the Act, the specified period is the period ending 5 business days after commencing to provide the designated service to the customer.

Note: 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.