Austrac has published draft amendments to chapter 4 of the Anti-Money Laundering and Counter-Terrorism Financing Rules (the AML/CTF Rules) which will relax the AML/CTF rules on customer identification.
The amendments to Chapter 4 of the AML/CTF Rules amend the electronic safe harbour procedure for customers, permit the collection of identification information from sources other than the customer, and extend current customer identification exemptions to include beneficial owners and politically exposed persons.
The amendments to the electronic safe harbour procedure in Rule 4.2.13 for customers of medium or lower risk will require:
(a) verification of the customer’s name and the customer’s date of birth; and
(b) either:
(i) the customer’s residential address; or
(ii) that the customer has a transaction history for at least the past 3 years; or
(iii) both (i) and (ii).
Verification of (a) and (b)(i) must be undertaken by the reporting entity through the use of reliable and independent electronic data from at least two separate data sources.
Consultation ends on 8 July 2015.
The transition period for the amended customer identification and due diligence rules ends on 31 December 2015.
