International Law

AML customer identification for currency exchange rules to be modified

Austrac has issued draft AML/CTF Rules which amend paragraph 14.4 of Chapter 14 by raising the threshold from $500 to $1,000 regarding the designated service of exchanging one currency for another in the course of carrying on a currency exchange business (item 50 of table 1 and item 14 of table 3 in section 6 of the AML/CTF Act), for reporting entities which are not ADIs, building societies banks, credit unions or representatives of a foreign bank.

As a result, the customer identification procedures under the AML/CTF Act do not apply to transactions under $1,000 unless a reporting entity, in accordance with its enhanced customer due diligence program, decides to obtain and verify any 'know your customer' information about that customer.

A public consultation period is open from 30 July 2008 to 13 August 2008.

Full post as published by Australian Regulatory Compliance Review on August 04, 2008 (boomark / email).