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 16 March 2009

[signed]

1 Name of Instrument

This Instrument is the Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2009 (No. 1).

2 Commencement

 This Instrument commences on the day after it is registered.

3 Amendment

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

Schedule 1 Amendment of the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1).

1. After Chapter 27

insert

CHAPTER 28 Applicable customer identification procedures in                                            certain circumstances – assignment, conveyance,                                           sale or transfer of businesses

28.1.  These Anti-Money Laundering and Counter-Terrorism Financing Rules  (Rules) are made under section 229 for subsection 39(4) of the Anti-Money               Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

28.2.  Subject to paragraphs 28.4 and 28.5, Division 4 of Part 2 of the AML/CTF Act               does not apply to a designated service that is provided in the circumstances               specified in paragraph 28.3.

28.3.  The specified circumstances for the purposes of paragraph 28.2 are that:

 (1)  reporting entity one has assigned, conveyed, sold or transferred               the whole or a part of its business to reporting entity two;

 (2)  the designated service is provided to a transferring customer;               and

 (3)  prior to the assignment, conveyance, sale or transfer, reporting               entity two has reasonably determined:

 (a) the ML/TF risk it faces in providing the designated  service to the transferring customers as a group; and

 (b)  that it has in place appropriate risk-based systems and               controls to identify, manage and mitigate the ML/TF               risk it faces in providing the designated service to the               transferring customers as a group; and

 (c)  based on the assessed ML/TF risk and its risk-based               systems and controls, it is reasonable for it to either:

 (i) rely upon the applicable customer identification               procedure of reporting entity one as an               appropriate means to identify and verify the               identification of a transferring customer; or

 (ii)  treat a transferring customer who was a pre- commencement customer of reporting entity one               as if the customer was a pre-commencement               customer of reporting entity two.

28.4.  Reporting entity two must, within 14 days after any of the circumstances  specified in paragraph 28.5 comes into existence, take one or more of the               actions specified below:

 (1) carry out the applicable customer identification procedure,  unless reporting entity two has previously carried out that               procedure or a comparable procedure; or

 (2)  collect any KYC information in respect of the customer; or

 (3)  verify, from a reliable and independent source, KYC  information that has been obtained in respect of the customer,               as is appropriate to the ML/TF risk relevant to the provision of               the designated service by reporting entity two;

  for the purpose of enabling reporting entity two to be reasonably satisfied that               the customer is the person that he or she claims to be.

28.5.  For the purposes of paragraph 28.4 the following circumstances are specified:

 (1)  a suspicious matter reporting obligation arises in relation to a               transferring customer; or

 (2)  reporting entity two reasonably suspects that reporting entity               one did not carry out the applicable customer identification               procedure when required; or

 (3)  a significant increase has occurred in the level of ML/TF risk as               assessed under the AML/CTF program of reporting entity two,               in relation to the provision of a designated service by reporting               entity two to a transferring customer.

28.6.  In this Chapter:

                                (1)  ‘reporting entity one’ means the reporting entity that assigns,               conveys, sells or transfers a whole or a part of the business;

                                (2)  ‘reporting entity two’ means the reporting entity to which  reporting entity one assigns, conveys, sells or transfers a whole               or a part of the business;

                                (3)  ‘transferring customer’ means a customer who is a customer of               reporting entity two in relation to a designated service solely               because of the assignment, conveyance, sale or transfer of the               whole or a part of the business from reporting entity one.

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the National Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to http://www.privacy.gov.au or call 1300 363 992.