International Law

Draft AML/CTF Rules relating to the definition of 'loan'

Austrac has released draft AML/CTF Rules (pdf) which carve out from the definition of 'loan' in paragraph (g) in section 5 of the AML/CTF Act, certain products such as money market instruments, government or corporate bonds, debenture stock, bonds and debt instruments that may also be considered as another type of designated service under that Act.

The purpose of these draft AML/CTF Rules is to remove the potential dual application of two types of designated services applying to a particular transaction. One such instance is where a product or service is a ?loan? designated service as well as a ?security? or a ?deposit-taker? designated service.

One of the consequences of the potential dual application of different types of designated services (in a particular transaction) is that parties to the transaction are treated as reporting entities at different sides of the transaction or at different times.

A public consultation period is open from 17 April 2008 to 8 May 2008.

Full post as published by Australian Regulatory Compliance Review on April 17, 2008 (boomark / email).