AML record-keeping rule

New anti-money laundering and counter-terrorism financing rules have been made to update the record keeping obligations of reporting entities.

The Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2008 (No. 1) set out the conditions under which a reporting entity may rely on the record of an applicable customer identification procedure (ACIP) carried out by another reporting entity.

The Explanatory Statement explains that:

"These AML/CTF Rules allow the second reporting entity to rely on the record of the ACIP which has been carried out by the first reporting entity, provided that the second reporting entity has access to that record in accordance with an agreement which is in place between the two reporting entities for the management of records. However, the second reporting entity may only rely on this agreement if it has first assessed that it is appropriate to rely on the first reporting entity’s ACIP having regard to the money laundering/terrorism financing risk relevant to the designated service which the second reporting entity is providing. That is, if the first reporting entity’s risk is different to the second reporting entity’s, it may not be appropriate to rely on the first reporting entity’s ACIP."