Commonwealth legislation

Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 2)

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

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Commonwealth

Collection

legislative instrument

Plain English Summary

2/10 complexity

This instrument clarifies which banking services count as a correspondent banking relationship under Australia's anti-money laundering and counter-terrorism financing laws.

What it does It specifies that banking services which do not involve nostro or vostro accounts (special accounts that banks hold with each other to settle international transactions) still fall within the legal definition of correspondent banking relationships.

Why it matters Banks must carry out extra customer due diligence and ongoing monitoring when they enter into correspondent banking relationships to help prevent money laundering and terrorism financing. This rule ensures the legal definition captures banking arrangements even when they don't use the traditional nostro/vostro account structure.

Who it affects Financial institutions (particularly banks) that provide cross-border banking services to other banks must apply enhanced scrutiny to these relationships, regardless of whether they use nostro/vostro accounts.

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Current sections

Direct links to the current provisions in Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 2).

Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 2)

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Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 2)

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

I, NEIL J JENSEN, Chief Executive Officer, Australian Transaction Reports and Analysis Centre, make this Instrument under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

Dated 29 March 2007

[Signed]
NEIL J JENSEN
Chief Executive Officer
Australian Transaction Reports and Analysis Centre

1 Name of Instrument

This Instrument is the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 2).

2 Commencement

This Instrument commences on the day after it is registered – the definition of ‘correspondent banking relationship’ in section 5 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

3 Rules

I make the Rules set out in Schedule 1.

Schedule 1

Anti-Money Laundering and Counter-Terrorism Financing Rules in Respect of Paragraph (e) of the Definition of ‘Correspondent Banking Relationship’ in Section 5 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006

These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made pursuant to section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for the purposes of paragraph (e) of the definition of ‘correspondent banking relationship’ in section 5 of the AML/CTF Act.
For the purposes of paragraph (e) of the definition of correspondent banking relationship in section 5 of the AML/CTF Act, all banking services that do not involve nostro or vostro accounts are specified.

Note: these Rules will commence on the day after they are registered.

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

1 Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 2)

Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 2)

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Dated 29 March 2007

[Signed]
NEIL J JENSEN
Chief Executive Officer
Australian Transaction Reports and Analysis Centre

1 Name of Instrument

This Instrument is the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 2).

2 Commencement

3 Rules

I make the Rules set out in Schedule 1.

Schedule 1

These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made pursuant to section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for the purposes of paragraph (e) of the definition of ‘correspondent banking relationship’ in section 5 of the AML/CTF Act.
For the purposes of paragraph (e) of the definition of correspondent banking relationship in section 5 of the AML/CTF Act, all banking services that do not involve nostro or vostro accounts are specified.

Note: these Rules will commence on the day after they are registered.