goldpelican said:
chimpanchu said:
Mate, you wanna get under the radar? Get your stuff from private dealers such as those in this forum.
For the sake of clarity, there's no such thing as a "private dealer" - if you are carrying on a business, you're required to follow AUSTRAC procedures. If you're not carrying on a business, you're a "private individual", not a "private dealer".
Just need to be clear lest people get the wrong idea about the dealers selling via Silver Stackers that are registered businesses.
Hi all,
Hope this isn't too long....I believe the most appropriate action to take is to read the law first (Comlaw
http://www.comlaw.gov.au), then (if applicable) the policy of the entity. Irrespective of any policy, everyone (individuals and businesses) has to follow the law. Some companies try to bend the law to suit their own policies. (references at bottom).
The AML/CTF Act states:
Individuals (acting as a bullion dealer/"private dealers"/"private individual") must complete KYC (Know Your Customer) requirements (and AUSTRAC reporting if over AUD$10,000)
The AML/CTF Rules set different identification and verification requirements for different types of customers:
If you are a reporting entity providing one or more designated services under the Anti-Money Laundering and Counter- Terrorism Financing Act 2006
http://www.austrac.gov.au/aml_ctf_rules.html (AML/CTF Act) you
must submit the following to AUSTRAC:
Suspicious Matter Reports (SMRs),
Threshold Transaction Reports (TTRs) (where applicable), and
International Funds Transfer Instruction (IFTI) reports (where applicable).
A reporting entity is an
individual, company or other entity that provides a 'designated service' as defined in the AML/CTF Act. Reporting entities include banks, non-bank financial services, remittance (money transfer) services,
bullion dealers and gambling businesses.
For
an indivdual, acting other than as a sole trader (See 4.2.3 and 4.2.6 of the Act), the ID requirements are to collect:
Name
Full Name;
Address
Residential Address; and
Other
Date of Birth.
Then verify:
Full name; and
Either Residential Address or
Date of Birth
For
an indivdual, acting as a sole trader (See 4.2.4 and 4.2.6 of the Act), the ID requirements are to collect:
Name
Full Name;
Address
Residential Address; or
Full address of the customer's principal place of business (if any); and
Other
Date of Birth;
Full business name under which the customer carries on their business (if any); and
Australian Business Number (ABN) issued to the customer (if any)
Then verify:
Full name; and
Either residential Address or
Date of Birth
When should I submit a Threshold Transaction Report (TTR)?
If your business provides or commences to provide a designated service to a customer which involves the transfer of physical currency or e-currency of
AUD10,000 or more (or foreign currency equivalent) you must complete a TTR.
Physical currency is the coin or printed money of Australia or another country which is designated as legal tender.
E-currency is an electronic form of currency which is backed by precious metal or bullion.
You must submit a completed TTR form to AUSTRAC within 10 business days of the threshold transaction taking place.
An interesting point to note:
Do I need to identify existing customers?
Under the AML/CTF Act, existing customers are known as 'pre-commencement customers'.
Pre-commencement means prior to the relevant section of the AML/CTF Act coming into effect, which in this case was 12 December 2007.
Under the Act you do not need to identify pre-commencement customers unless a 'suspicious matter' reporting obligation arises in relation to a particular customer. The suspicious matter reporting obligation under the AML/CTF Act comes into effect on 12 December 2008.
Are there Exemptions to the Reporting of Customer Identification??
The AML/CTF Act exempts reporting entities from the customer identification procedure obligations in cases where a designated service is provided at or through a permanent establishment in a foreign country. The AML/CTF Act also exempts certain designated services relating to pensions, annuities, superannuation and retirement savings accounts from the customer identification procedure obligations. This includes someone acting in the capacity of an AFS licence holder arranging for any of those services to be provided to a person (where that is the extent of the service provided by the AFS licence holder).
What is ongoing customer due diligence (OCDD)?
Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and AML/CTF Rules, 'reporting entities' have obligations to monitor customers and their transactions on an ongoing basis. This 'ongoing customer due diligence' (OCDD) will help reporting entities to identify, mitigate and manage money laundering or terrorism financing (ML/TF) risks that may arise from providing one or more designated services to their customers.
The AML/CTF Rules specify three mandatory components of OCDD:
collection and verification of additional 'know your customer' (KYC) information
a transaction monitoring program
an enhanced customer due diligence program.
Mandatory component one: collecting and verifying additional KYC information
Before providing a designated service to a customer,
a reporting entity must collect and verify information about the customer's identity. As part of the OCDD obligations, reporting entities must also determine when it may be necessary to collect further KYC information, or update or verify existing KYC information. This must be included in reporting entities' AML/CTF programs.
Mandatory component two: transaction monitoring program
The purpose of a transaction monitoring program is to identify transactions that appear to be suspicious, within the terms of the AML/CTF Act's 'suspicious matter' reporting provisions. The transaction monitoring program must be included in Part A of a reporting entity's AML/CTF program.
A transaction monitoring program should be able to detect complex, unusual large transactions and unusual patterns of transactions, which have no apparent economic or lawful purpose. It is up to reporting entities to decide on the most appropriate form of transaction monitoring for their business - for example, it does not have to be a computer-based software package. However, if a reporting entity has an automated system in place, the entity should assess the 'flags' produced by the system to ensure they are relevant to the entity's business and customers, prior to using the system.
See also 'Reporting entities who have been reporting to AUSTRAC as cash dealers under the FTR Act' below.
Mandatory component three: an enhanced customer due diligence program
Part A of a reporting entity's AML/CTF program must include an enhanced customer due diligence program, which is applied when the reporting entity determines there is high ML/TF risk, or a reportable suspicious matter has arisen.
When applying the enhanced customer due diligence program, the reporting entity must consider issues including whether to analyse, verify, re-verify, clarify, update, or obtain any KYC information about a customer, analyse and monitor the customer's transactions, clarify the nature of the customer's ongoing business with the reporting entity, and/or report a suspicious matter to AUSTRAC.
Amusing to see above the law states that "individuals have obligations to monitor their customers on an ongoing basis".....
lol what a joke if i every heard one.... "monitor their transactions with your business" is ok, but "monitor customers"?
soon we will have to fill out methane reports and send them to EPA...
References:
Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act)
http://www.comlaw.gov.au/Details/F2011C00081
Full rules are here
http://www.austrac.gov.au/aml_ctf_rules.html
Customer identification
http://www.austrac.gov.au/customer_id.html
Customer ID Ready Reckoner
http://www.austrac.gov.au/files/ready_reckoner.pdf
Ongoing Customer Due Diligence (OCDD)
http://www.austrac.gov.au/ongoingcustomerduediligence.html
Reporting obligations
http://www.austrac.gov.au/reporting_obligations.html
AUSTRAC Online
http://www.austrac.gov.au/online
