Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2013 (No. 1)

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

I, Jane Elizabeth Atkins, Acting 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 9 April 2013

Signed

Jane Elizabeth Atkins PSM

Acting 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 Amendment Instrument 2013 (No. 1).

2 Commencement

This Instrument commences on the day after it is registered.

3 Amendment

Schedules 1 and 2 amend 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. Chapter 29

Item 1 Repeal Chapter 29

Item 2 After Chapter 28 insert

CHAPTER 29 Record-keeping obligations under section 107

29.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules (Rules) are made under section 229 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) for paragraph 107(1)(b) of that Act.

29.2 For paragraph 107(1)(b) of the AML/CTF Act the following records are declared to be exempt:

(1) customer-specific documents (such as account statements), correspondence and publicly-available statements, forms and documents which a reporting entity routinely provides to its customers, such as disclosure statements, financial or investment analysis or summary reports;

(2) product or service information, which replicate information retained as a record by the reporting entity;

(3) general correspondence with customers, such as, but not limited to, promotional materials and general correspondence relating to fees, service charges, interest rate changes, terms and conditions, technology changes and legislative changes which are not specific to a particular customer;

(4) overdrawn notices and accompanying correspondence;

(5) information provided to a customer of a reporting entity on the methods by which a designated service is to be delivered;

(6) correspondence or similar documents provided by a reporting entity to a customer which relate to, or otherwise document, product or service enquiries or comments from customers, such as customer experience records or requests for information on a product;

(7) records of interviews or conversations with customers, such as recordings of phone conversations where instructions are received from the customer unless the information contained in such interviews or conversations relates to a reporting obligation under the AML/CTF Act;

(8) a record of information created by the use of an optical surveillance device;

(9) an electronic file created solely for the purpose of submitting electronic reports to AUSTRAC in a manner and form approved by the AUSTRAC CEO for the purposes of paragraph 244(2)(b) of the AML/CTF Act.

29.3 In this Chapter:

(1) ‘optical surveillance device’ has the same meaning as in the Surveillance Devices Act 2004.

Reporting entities should note that exemptions declared by this Chapter only affect record-keeping obligations derived from the AML/CTF Act and do not affect reporting entities’ record-keeping obligations under any other legislation.

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.oaic.gov.au or call 1300 363 992.

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

1. Chapters 3, 5, 6, 7, 9, 10, 24, 25, 26

Item 1 At the end of each Chapter insert

2. Chapters 14, 15, 17, 18, 19, 23, 31, 33, 35, 45, 46, 48, 49

Item 2 At the end of each Chapter

Omit

Substitute

3. Chapters 27, 39, 51, 56, 57, 63, 68

Item 3 At the end of each Chapter

Omit

Substitute

4. Chapters 16, 20, 21, 22, 28, 30, 32, 34, 36, 37, 38, 40, 42, 43, 44, 47, 50, 52, 53, 54, 55, 58, 59, 60, 61, 62, 64, 65, 66, 67

Item 4 At the end of each Chapter

Omit

Substitute

5. Chapter 1

Item 5 After subparagraph 1.1.1

Omit

Note reporting entities should note that the activities they carry out in order to comply with the AML/CTF Rules are also subject to the provisions of the Privacy Act 1988, even if the reporting entity is generally exempt from that Act.

Item 6 At the end of Chapter add

6. Chapter 2

Item 7 After subparagraph 2.1.3(13) omit

Item 8 After Form 3

Omit

Substitute

7. Chapter 4

Item 9 After subparagraph 4.2.5 omit

Note reporting entities should consider their obligations under other legislation, including the Privacy Act 1988 when deciding what information is required to be collected to fulfil their obligations under these Rules.

Item 10 At the end of the Chapter insert

8. Chapter 8

Item 11 After subparagraph 8.3.4 omit

Note Reporting entities should note the Privacy Commissioner’s information sheet in relation to the handling of employee information.

Item 12 At the end of the Chapter insert

9. Chapters 12, 13

Item 13 At the end of each Chapter

Omit

Note reporting entities should note that the activities they carry out in order to comply with these Rules are also subject to the provisions of the Privacy Act 1988, even if the reporting entity is generally exempt from that Act.

Substitute