I, Nicole Rose, 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 19/12/2017

[signed]

1 Name of Instrument

This Instrument is the Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2017 (No. 4).

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. Chapter 75

Item 1 After Chapter 74

insert:

Chapter 75 Law Enforcement Operations

75.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules are made under section 229 for subsection 247(4) of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

Reporting entities assisting specified agencies with investigations may be exempted from certain obligations under the AML/CTF Act

75.2 If a requesting officer of an eligible agency reasonably believes that providing a designated service to a customer would assist the investigation of a serious offence, the officer can request the AUSTRAC CEO to exempt specified reporting entities from certain AML/CTF Act obligations.

75.3 The exemption in paragraph 75.2 applies to the following provisions of the AML/CTF Act:

(1)               section 29 (verification of identity for certain pre-commencement customers);

(2)               section 32 (carrying out the applicable customer identification procedure before the commencement of the provision of a designated service);

(3)               section 34 (carrying out the applicable customer identification procedure after the commencement of the provision of a designated service);

(4)               section 35 (verification of identity of customer);

(5)               section 36 (ongoing customer due diligence);

(6)               section 82 (compliance with Part A of an anti-money laundering and counter-terrorism financing program);

(7)               section 136 (false or misleading information);

(8)               section 137 (producing false or misleading documents);

(9)               section 138 (false documents);

(10)           section 139 (providing a designated service using a false customer name or customer anonymity); and

(11)           section 142 (conducting transactions so as to avoid reporting requirements relating to threshold transactions).

Application requirements

75.4 An application for exemption must:

(1)               be made in writing by a requesting officer;

(2)               provide sufficient information to enable the AUSTRAC CEO to decide whether or not to approve the application; and

(3)               contain the requesting officer’s declaration that the information contained in the application is true, accurate and complete.

Determining application and notice of decision

75.5 In determining an application, and without limiting the information the AUSTRAC CEO may have regard to, the AUSTRAC CEO must consider all information contained in the application.

75.6 The AUSTRAC CEO must, as soon as practicable after deciding an application, give written notice of that decision to both the eligible agency and the specified reporting entity or entities.

75.7 The written notice must set out:

(1)               the reasons for the decision; and

(2)               if the application is approved, the start date of the exemption and any conditions that may apply.

Exemption period

75.8 An exemption will operate for a period of six months starting on the date specified in the notice of the decision, or until the eligible agency notifies both the AUSTRAC CEO and the exempted reporting entity or entities that the relevant investigation has ceased, whichever occurs first.

75.9 The AUSTRAC CEO may extend the operation of the exemption for further period(s) upon written application made by a requesting officer of the eligible agency.

Definitions

75.10 In this Chapter:

(1)               ‘eligible agency’ means:

(a)               the Australian Crime Commission;

(b)               the Australian Federal Police;

(c)               the Immigration Department;

(d)               the NSW Crime Commission; or

(e)               the police force or police service of a State or the Northern Territory.

(2)                ‘requesting officer’ means:

(a)               the head of an eligible agency;

(b)               a member of the eligible agency who is an SES employee or an equivalent under State or Territory legislation; or

(c)               a member of an eligible agency who holds the rank of Superintendent or higher.

(3) ‘serious offence’ means:

(a) an offence against a law of the Commonwealth, or a law of a State or Territory, punishable on indictment by imprisonment for 2 or more years; or

(b) an offence against a law of a foreign country constituted by conduct that, if it had occurred in Australia, would have constituted a serious offence.

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 Australian 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.