To implement the digital currency provisions of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2017, which will commence on 3 April 2018, AUSTRAC has registered Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2018 (No. 2) effective 28 March 2018.
This Instrument adds Chapter 76 (Digital Currency Register) to the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) (AML/CTF Rules). It also amends Chapters 3, 4, 10, 18, 19, 37, 45, 57, 70 and 74, and repeals Chapters 44 and 53 of the AML/CTF Rules
The Amendment Act imposes mandatory registration and compliance obligations on digital currency exchange providers, including:
- customer identification and due diligence;
- adopt and maintain an AML/CTF program, which includes requirements to identify, manage and mitigate money laundering and terrorism financing (ML/TF) risk;
- suspicious matter reporting;
- threshold transaction reporting;
- record-keeping requirements.
The Act and Rules insert the following definitions:
“Digital currency” means:
(a) a digital representation of value that:
(i) functions as a medium of exchange, a store of economic value, or a unit of account; and
(ii) is not issued by or under the authority of a government body; and
(iii) is interchangeable with money (including through the crediting of an account) and may be used as consideration for the supply of goods or services; and
(iv) is generally available to members of the public without any restriction on its use as consideration; or
(b) a means of exchange or digital process or crediting declared to be digital currency by the AML/CTF Rules;
but does not include any right or thing that, under the AML/CTF Rules, is taken not to be digital currency for the purposes of this Act.
“Digital currency wallet” means any service that allows a person to send, request, receive, or store digital currency.
