aml/ctf compliance guide for hotels & clubs licensed to ...€¦ · 04 aml/ctf compliance guide...

AML/CTF compliance guide for hotels & clubs licensed to operate electronic gaming machines

Disclaimer

The purpose of this guide is to assist hotels and clubs that control a gaming machine venue to meet their obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and the Anti-Money Laundering and Counter-Terrorism Financing Rules. It is not intended to be comprehensive and does not constitute nor should it be treated as legal advice or opinion. The Commonwealth accepts no liability for any loss suffered as a result of reliance on this publication. AUSTRAC recommends that independent professional advice be sought. The information contained herein is current as at the date of this document.

© Commonwealth of Australia 2013

This work is copyright. You may download, display, print and reproduce this material in unaltered form only (retaining this notice) for your personal, non-commercial use or use within your organisation. Where material has been sourced from other third party sources, copyright continues.

Date: December 2013

03/overview

OverviewThis guide is for hotels and clubs

» that are licensed to have more than 15 – 100 electronic gaming machine (EGM) entitlements or

» that are part of a group of related hotels and clubs that collectively is licensed to have more than 15 – 100 EGM entitlements.

This guide will help these hotels and clubs to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and the Anti-Money Laundering and Counter-Terrorism Financing Rules (AML/CTF Rules). It will step you through:

» enrolling your business with AUSTRAC (module 1)

» some examples of money laundering (module 2)

» conducting a money laundering/terrorism-financing (ML/TF) risk assessment (module 3)

» writing your AML/CTF program (module 4)

» record keeping (module 5)

» AML/CTF compliance reports (module 6)

Larger gaming venues are expected to meet their AML/CTF obligations independently of this guide.

This guide should be read in conjunction with other AUSTRAC guidance material listed in Appendix 1.

Using this guide This compliance guide will help you to:

1. identify and consider the ML/TF risks your business may be exposed to and the actions you must take to manage those risks

2. record, in your own words, the policies and processes you will use to manage your AML/CTF obligations

3. organise, list and attach other documents that can be used to provide evidence of your diligence in considering, planning and implementing your AML/CTF obligations.

The guide is an example of the level of care, diligence and detail AUSTRAC expects when you plan and implement your policies and procedures. Using this guide is not compulsory; it is recommended.

Why are hotels and clubs covered by the AML/CTF Act?Hotels and clubs are included because some activities which they undertake have been identified as being vulnerable to abuse by criminals for ML/TF. These activities are called ‘designated services’ in the Act, but will be referred to as ‘services’ in this guide.

Under the AML/CTF Act, the business must design and implement an AML/CTF program to:

» protect it from being used as a vehicle to launder money or finance terrorism

» include processes and procedures to adequately meet legal obligations set out in the AML/CTF Act and AML/CTF Rules.

The business must report to AUSTRAC as and when required.

04 AML/CTF compliance guide for hotels & clubs licensed to operate electronic gaming machines /overview

What if I provide other services in addition to gaming machines?This compliance guide applies to the gaming operations provided through EGMs.

If you provide other services covered by the AML/CTF Act, including as an authorised agent, you should separately consider those services. This may involve contacting your service provider(s) for information on your AML/CTF obligations in those areas.

What if I am licensed to operate 15 or fewer EGM entitlements across my venues?If you are licensed to operate 15 or fewer EGM entitlements across your venues, you are not required to:

» adopt an AML/CTF program

» verify the identities of customers or

» submit threshold transaction reports (TTRs).

That is, you do not need to use this guide if you are licensed to operate 15 or fewer EGM entitlements.

However, you are required to:

» report suspicious matters

» undertake record keeping

» meet enrolment obligations.

Further guidance is available on the AUSTRAC website:

» ‘Suspicious Matter Reports’ module of the ‘AML/CTF reporting’ e-learning course: www.austrac.gov.au/courses.html

» AUSTRAC Guidance Note 08/04 – Record-keeping requirements: www.austrac.gov.au/guidance_notes.html

» AUSTRAC Public Legal Interpretation No. 6 – Suspicious matter and suspect transaction reports: www.austrac.gov.au/pli.html

What are the penalties for not complying with the AML/CTF Act?Civil and criminal penalties can be imposed where a business does not comply with the Act.

» Subsections 174(4) and (5) of the AML/CTF Act provide for a maximum civil penalty for a single contravention of up to $17 million for a corporation and up to $3.4 million for an individual.

» The penalties for criminal offences include imprisonment for up to 10 years and/or fines up to $1.1 million.

What does AML/CTF mean?

These terms are used throughout the guide:

» AML - anti-money laundering

» CTF - counter-terrorism financing

» ML - money laundering

» TF - terrorism financing

Who do I contact for help?Assistance is available from AUSTRAC’s Help Desk during business hours on 1300 021 037 or via email at [email protected].

AML/CTF compliance guide for hotels & clubs licensed to operate electronic gaming machines /overview 05

Overview of guide layoutThe compliance guide is organised into six modules. Each module:

» relates to your mandatory obligations and

» explains how to document the processes and procedures you are implementing to meet those obligations.

Module Description Page number

Module 1:

Enrol your business

Module 1 will explain how to enrol with AUSTRAC

Page 6

Module 2: Money laundering examples

Module 2 consists of a selection of money laundering examples

Page 7

Module 3: Conducting an ML/TF risk assessment

Module 3 will help you consider the ML/TF risks your business faces

Page 10

Module 4: AML/CTF program

Module 4 will help you plan and document your AML/CTF program

Page 11

Module 5: Record keeping

Module 5 will help you meet your AML/CTF record keeping requirements

Page 37

Module 6: AML/CTF compliance reports

Module 6 will help you with your annual compliance report lodgement

Page 40

Appendix 1Resources to assist you to meet your AML/CTF obligations

Page 41

Abbreviations/glossary Page 42

06/overview

06/module 1

Module 1: Enrol your business with AUSTRACEnsure your business is enrolled with AUSTRACHotels and clubs licensed to operate electronic gaming machines are required to enrol with AUSTRAC and must:

» enrol within 28 days of providing or commencing to provide a service covered by the AML/CTF Act

» keep your enrolment details up to date and advise AUSTRAC of any change in your details within 14 days.

How do I enrol?

The easiest way to enrol is electronically through AUSTRAC Online at: https://online.austrac.gov.au/ao/login.seam.

If you do not have computer or internet access, you can enrol using a paper form available from AUSTRAC by contacting the AUSTRAC Help Desk on 1300 021 037.

07/overview

07/module 2

Module 2: Money laundering examplesWhat is money laundering and terrorism financing?Money laundering is the process criminals use to ‘clean’ money from illegal activities – such as fraud, drug trafficking, tax evasion, smuggling, theft, and arms trafficking – to make it seem legitimate. The purpose is to avoid prosecution, conviction and confiscation. Money laundering also refers to situations where a criminal chooses to spend money that is the proceeds of a crime (such as tax evasion or drug dealing).

Terrorism financing includes receiving funds from, giving funds to, or collecting funds on behalf of terrorists and terrorist organisations. This includes where a person is unaware that the organisation is a terrorist organisation but does not take reasonable steps to ascertain whether the funds are intended for use in a terrorist act.

Hotels and clubs can be used by criminals to launder the proceeds of crime, as shown in the following examples.

Example 1

Criminals launder illicit funds through larger clubs

Organised crime syndicates may target larger club environments to launder the proceeds of crime. Several members of a syndicate may target a club. Each individual in the syndicate will insert cash into an EGM, allowing funds for game-play to build up and then, after only minimal game-play, will credit out the unused money.

Then that individual goes to the cashier to redeem the unused credit value as a cheque. The syndicate members often request the cheque to be drawn in the name of a third party. The syndicates can exploit larger clubs that have no central oversight of prize payouts or credit redemptions paid by cheque. Many larger clubs may have several cashier booths where prize or credit payouts can be redeemed. Syndicate members will avoid detection by redeeming unused credits at alternative cashier booths and/or from different cashiers after shift-changes.

In this example, the money laundering indicators may include:

» individuals crediting-out unused credits with minimal or no game-play to redeem a cheque. This indicator is equally applicable to any hotel or club with EGMs

» individuals redeeming cheques for unused credits through multiple cashiers

» individuals requesting cheques to be drawn in the name of third parties

» a customer refuses, or is reluctant to, produce identification upon request

» a customer’s level of gaming activity is inconsistent with the profile of the customer (for example, the customer receives welfare benefits but gambles or carries substantial amounts of cash).

08 AML/CTF compliance guide for hotels & clubs licensed to operate electronic gaming machines /module 2

Example 2

EGMs used to facilitate tax evasion

People who work in cash-based industries, or who are often paid in cash for their services, may use EGMs to facilitate tax evasion. They insert cash into EGMs and with little or no legitimate game-play, then credit-out the value from the EGM and collect a cheque payment for the value credited-out. The cheque, which constitutes a prize or credit payout, is then claimed not to form part of their taxable income. So the person effectively avoided paying any tax on what otherwise must be declared as taxable income.


» individuals crediting-out unused credits with minimal or no game-play to redeem a cheque

» multiple cheques paid to the same individual on a regular basis

» customer claiming a high-level of gaming machine payouts.

Example 3

EGMs used to replace lower cash denominations for higher cash denominations

Organised criminal syndicates may have large amounts of illicit cash, and they prefer to maintain that cash in large denominations, for ease of concealment and portability.

Smaller denomination notes are fed into the bill feeders of EGMs. Credits for game-play are allowed to build up and then, after only minimal game-play, the unused credits are cashed out. The payout of these unused credits is specifically requested in large denomination notes.


» individuals cashing out unused credits with minimal game-play and specifically requesting the payout in high denomination notes

» customers attend ‘ticket in/cash out (TICO)’ kiosks more frequently than usual

» individuals carrying large sums of cash at gaming venues.

AML/CTF compliance guide for hotels & clubs licensed to operate electronic gaming machines /module 2 09

Example 4

Money launderers purchase prize payout vouchers at a premium

Money launderers approach customers with EGM prize payout vouchers and offer to purchase these at a cash premium. The legitimate winner benefits from the cash premium and the launderer presents the winning prize payout voucher to the club or hotel to obtain a cheque, which can then be deposited into a bank account under the guise of legitimate winnings.


» customers loitering in the gaming area with no obvious intention of engaging in game-play

» customers offering to purchase gaming machine prize payout vouchers from other customers

» individuals claiming prize payouts by cheque more frequently than usual

» customer claiming multiple payouts on the same and/or successive days.

Example 5

Collusion of cashier staff with money launderers

Money launderers prefer to remain anonymous to avoid prosecution if their illegal activity is detected. Money laundering syndicates have been known to collude with staff of hotels and clubs to launder their illicit funds. Criminals or money launderers are most likely to collude with cashiers responsible for making prize or credit payouts. This allows them to withdraw credit from EGMs and then collect the cheque payments without having their correct details recorded, as required under most state and territory gaming legislation. They subsequently avoid accurate detection.


» individuals withdrawing unused credits with minimal game-play to redeem a cheque

» cashiers pay out an unusually high amount of cheques

» venue staff not undertaking KYC requirements

» over-familiarisation between venue staff and gaming patrons.

The indicators are examples – and do not cover all possibilities – to help identify potential money laundering and other serious and organised criminal activity. A single indicator does not necessarily indicate illicit activity; it should prompt further monitoring and examination. Multiple indicators should raise suspicion.

10/overview

10/module 3

Module 3: Conducting an ML/TF risk assessmentTo identify ML/TF risks and meet your obligations under the AML/CTF Act, you need to consider the nature of your business. This involves considering:

» your customers

» the services you provide

» the methods you use to deliver those services.

You may wish to use the risk assessment guide for hotels and clubs: www.austrac.gov.au/guides.html.

11/overview

11/module 4

Module 4: AML/CTF program

Part A (general procedures)Hotels and clubs with EGMs must have a written AML/CTF program in place that will help identify, mitigate and manage ML/TF risks.

These obligations are described in more detail in the following nine steps. Please complete each step.

Quick checklist

Step 1: Appoint an AML/CTF compliance officer

Step 2: Describe your employee due diligence program

Step 3: Describe your AML/CTF risk awareness training program

Step 4: Respond to AUSTRAC feedback

Step 5: Establish regular independent reviews of your AML/CTF program

Step 6: Document ongoing customer due diligence

Step 7: Document your reporting procedures

Step 8: Collect and verify ‘know your customer’ (KYC) information (Part B AML/CTF program)

Step 9: Adopt the AML/CTF program and ensure ongoing oversight


Step 1: Appoint an AML/CTF compliance officerYou must appoint someone from management or the proprietor to be the AML/CTF compliance officer.

The compliance officer is the main point of contact for AUSTRAC and for your employees for AML/CTF matters.

You may also wish to nominate a backup person for times when the compliance officer is not available.

Who is the AML/CTF compliance officer in your business? (Name and title)

Who is the backup person for the AML/CTF compliance officer (if you have a backup person)? (Name and title)

What duties does the AML/CTF compliance officer have? (Tick all that are applicable)

Enrolling and maintaining business details with AUSTRAC

Approving the AML/CTF program and procedures

Updating and maintaining the AML/CTF program and procedures

Updating and maintaining the ML/TF risk assessment

Training employees about AML/CTF

Screening employees

Responding to feedback from AUSTRAC

Monitoring transaction and customer activity to identify suspicious transactions


Conducting further enquiries on high-risk or suspicious customers

Sighting and recording identification for customers

Reporting threshold transactions and suspicious matters to AUSTRAC

Keeping records of the AML/CTF program and customer identification

Submitting AML/CTF compliance reports to AUSTRAC

Other:


Step 2: Describe your employee due diligence programYou must have an employee due diligence program.

This is a program to help you decide how to screen employees (including prospective employees) who are in a position to facilitate an ML/TF offence.

You may decide to check their identity and their background to satisfy yourself they are of good character and, for example, are not involved with criminals or criminal activity.

An employee due diligence program must also contain appropriate procedures to manage employees who fail, without reasonable excuse, to comply with a system, control or procedure that relates to your AML/CTF program.

Total number of employees:

Full-time: Part-time: Casual:

Number of employees directly involved in providing your gaming services? (Indicate the number of full-time, part-time and casual staff and circle the relevant level of involvement in the role.)

Gaming managers, duty managers or shift supervisors

Full-time: Part-time: Casual: (dedicated/mixed role)

Poker machine attendants or cashiers


Administrative staff or concierges responsible for customer identification (If different to above)


In the case of hotels, this may also include people who assist you from time to time to provide your gaming services, including unpaid family and friends.

How do you verify the identity of a prospective employee?


What checks do you perform on new employees before they work for you? (for example, speak with previous employers, personal reference checks, work history checks, criminal history checks, credit reference checks, etc)

What checks do you perform on an employee transferred or promoted to a position with increased opportunity to facilitate money laundering or terrorism financing?

How do you supervise employees to ensure they follow AML/CTF procedures?

What would you do if an employee breached AML/CTF requirements?


Step 3: Describe your AML/CTF risk awareness training programYou must educate your employees (including unpaid family members and friends working in your business) about the risk of ML/TF being facilitated through your business. You must also train them in your AML/CTF procedures.

You must have a risk awareness training program that includes the following elements:

» your obligations under the AML/CTF Act and the consequences of non-compliance

» the types of ML/TF risk your business may face and the potential consequences of these risks

» the processes and procedures in your AML/CTF program relevant to the work carried out by your employees.

You may wish to look at AUSTRAC’s e-learning courses, which can be found online at: www.austrac.gov.au/courses.html.

These online courses provide a general understanding of AML/CTF issues.

Who receives the training?

How often do employees receive AML/CTF training? (Tick all that apply)

On commencement

Every 6 months

Every 12 months

Every 24 months

Other:


Who delivers the training?

How is AML/CTF training delivered (for example, on the job, short group sessions, online training)?

Do you keep records of employees’ AML/CTF training? If yes, please describe:

How are employees tested on their understanding of AML/CTF after receiving training?

How do you ensure employees are kept up to date on new AML/CTF issues?


What do you do if an employee breaches your AML/CTF policies and procedures?

Step 4: Respond to AUSTRAC feedbackYou must have procedures you will follow if AUSTRAC instructs you to respond to requests about your compliance with AML/CTF obligations.

Who is responsible for responding to AUSTRAC feedback?

What process does this person follow to ensure feedback is recorded and responded to, and that relevant employees are notified of the result?

What timeframe have you set for responding to AUSTRAC feedback?

Within 2 days

Within 1 week

Within 2 weeks

Other:


Step 5: Establish regular independent reviews of your AML/CTF programAn independent person must regularly review your AML/CTF program.

Many businesses choose to review their program annually, when business practices change, or if a serious ML/TF incident occurs.

The independent review should assess:

» the effectiveness of the AML/CTF program

» whether the AML/CTF program complies with the AML/CTF Act

» whether the program has been effectively implemented

» whether you have complied with your AML/CTF program.

The results of the independent review must be provided to the AML/CTF compliance officer or other authorised senior officer/proprietor responsible for ongoing oversight of the AML/CTF program.

While the review can be conducted by an internal or external person, the reviewer must be independent.

» That means the reviewer must not have been involved in designing or implementing your AML/CTF program.

» Your AML/CTF compliance officer is not independent and is not an appropriate person to conduct a review.

» If there is no one in your business who can conduct an internal independent review, you may consider asking an external adviser, such as your accountant or your solicitor, to conduct the review.

You may wish to base your review on the AUSTRAC Small business checklist, which is available at: www.austrac.gov.au/check_bus.html.

Who conducts the independent review?

How often will the review be conducted?

Every 12 months

Every 24 months

Other:


How do you ensure the reviewer is independent?

Describe the review process and how you will address recommendations arising from the review.


Step 6: Document ongoing customer due diligenceYou must have processes in place to update and collect further customer information and monitor your customers and their transactions on an ongoing basis. This is called ‘ongoing customer due diligence’ and involves:

» determining the circumstances for updating or verifying your existing information about a customer (see A below) and collecting any further information about your customers

» ongoing monitoring of customers and their transactions (see B below)

» enhanced scrutiny of high risk and suspicious customers (see C below).

A. Describe the circumstances for updating, verifying and re-verifying customer information

When would you update, verify and/or re-verify an existing customer’s information?

You find out your customer changed his/her name

Your customer mentions he/she moved address

Other:


B. Describe how you monitor your customers’ gaming transactions

You must have a transaction monitoring program to identify any transactions that appear to be suspicious. This includes:

» complex, unusually large transactions

» unusual patterns of transactions.

Describe how you would review payout records to identify customers involved in suspicious gaming activity.

When do you review your transaction records, looking for suspicious patterns of activity?

At the time of providing credit redemptions or awarding prize payouts

Every week

Every fortnight

Every month

In response to unusual customer activity observed by you or your employees

Other:


Who conducts the transaction monitoring for your business?

What are your red flags for transaction monitoring? (for example, purchasing winning tickets from a patron, reluctance to provide KYC information, playing several machines at once, inserting as much cash as possible and then redeeming the credits after minimal play)


C. Describe your ‘enhanced’ customer due diligence procedures

You must also have an enhanced customer due diligence program in place. This sets out your procedures for situations where there is a high ML/TF risk or when a suspicious matter reporting obligation arises.

Where there is a high ML/TF risk or a suspicious matter occurs, you must do one or more of the following:

» seek further information from the customers or third party sources to:

Ŧ clarify or update the customer’s information

Ŧ obtain further information about the customer

Ŧ obtain information about the source of wealth or funds the customer is using to gamble

» consider any suspicion that may arise, where appropriate

» undertake more detailed analysis of the customer’s information, which may include identifying the source of their wealth or the funds they are using to gamble

» undertake more detailed analysis and monitoring of the customer’s past and current gambling activity (this could also include analysis of records of previous prize payouts or credit redemptions made for that customer)

» submit a suspicious matter report (SMR) to AUSTRAC, where appropriate.

For example:

» If a customer redeems credit payout vouchers more frequently than usual or from multiple cashiers, you may wish to confirm their identity when they next try to redeem a credit redemption.

» You may also want to review the EGM meter reading data or the records of prize payouts or credit redemptions to be assured the customer is engaging in legitimate game play and not simply feeding cash into the EGM and crediting the funds out to obtain a cheque.

» Remember, in some circumstances it may not be appropriate to obtain further information from a customer or a third party, such as when you cannot do so without alerting or tipping off the customer or third party to your suspicions.

Describe your procedures for dealing with situations where the ML/TF risk is high, or where you form a suspicion that must be reported under the AML/CTF Act.


Who is responsible for conducting enhanced customer due diligence?

If you had a suspicion about a customer that must be reported to AUSTRAC, what would you do? (Tick all that apply)

Engage the customer in conversation to find out more about them

Interview employees to hear their version of events

Review information held about the customer’s identity

Ask the customer for ID or re-verify the customer’s ID

Review the customer’s transactions looking for suspicious patterns

Record the findings of your enhanced customer due diligence

Other:


Step 7: Document your reporting procedures You must submit SMRs to AUSTRAC.

The information must be in the approved form and contain specified information.

AUSTRAC prefers reports be submitted electronically via AUSTRAC Online, via the AUSTRAC website: https://online.austrac.gov.au/ao/login.seam

If you can not submit reports electronically, you may use a paper form. A paper form can be obtained by calling the AUSTRAC Help Desk on 1300 021 037.

Further information and assistance is available from AUSTRAC e-learning courses about transaction reporting which can be found through the website: www.austrac.gov.au/elearning_reporting/reporting_requirements_readme.html.

Suspicious matter reporting

You must report suspicious matters to AUSTRAC about any service covered by the AML/CTF Act you:

» provide

» propose to provide

» have been asked to provide to a person.

This requirement applies whether you provide the service to that person or not.

You must submit an SMR to AUSTRAC if you form a suspicion on reasonable grounds:

» the person (or their agent) is not who they claim to be

» information you have may be:

Ŧ relevant to investigate or prosecute a person for:

› an evasion (or attempted evasion) of a tax law

› an offence against a Commonwealth, state or territory law

Ŧ of assistance in enforcing:

› the Proceeds of Crime Act 2002

› a state or territory law that corresponds to Proceeds of Crime Act 2002


» providing a service may be:

Ŧ relevant to committing an ML/TF offence

Ŧ relevant to investigating or prosecuting a person for an offence related to ML/TF.

In summary: you must submit an SMR if, at any time while dealing with a customer, you form a suspicion that a matter might be related to an offence, tax evasion, the proceeds of crime or terrorism financing.

Examples of suspicious matters may include:

» Customer inserts cash into a gaming machine and credits out with little or no legitimate game play.

» Customer redeems credit payout vouchers more frequently than usual or from multiple cashiers.

» Customer wanders through gaming area with no visible intention of playing machines and approaches other customers to purchase pay out vouchers.

» Customer’s source of funds are suspected to be linked to criminal activities.

» Customer requests cheques be drawn in the name of a third party.

» Customer uses player membership cards belonging to other customers when claiming credit redemption.

» Customer refuses or is reluctant to produce identification when requested, or presents false identification or verification documents.

» Customer requests higher denomination bills when redeeming credit redemptions more frequently than usual.

You must complete an SMR and submit it to AUSTRAC within:

» 24 hours if your suspicion relates to terrorism financing

» 3 business days if your suspicion relates to money laundering.


Who do your employees inform when they think a customer or matter is suspicious?

Who is responsible for completing enhanced customer due diligence and reporting SMRs to AUSTRAC?

How do you ensure that SMRs are submitted within the required time frames?


Step 8: Part B AML/CTF program – Collect and verify ‘know your customer’ information

Reporting entities that must comply with the AML/CTF Act will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles with effect on 12 March 2014. For further information about these obligations, please go to www.privacy.gov.au or call 1300 363 992.

Hotels and clubs with EGMs must verify the identity of their customers:

» when the customer is paid out prize winnings to the value of $10,000 or more (this applies to all methods of payment whether cash, cheque or bank transfer)

» when the customer is considered high risk (the risks listed in the risk register on page 8 of the ML/TF risk assessment guide will assist you to identify high risk customers)

» if at any time the hotel or club forms a suspicion about the customer or doubts the customer is who they claim to be

» when your enhanced customer due diligence program requires you to collect and verify further KYC information.

AUSTRAC has published a customer identification ready reckoner, which can be downloaded from: www.austrac.gov.au/files/ready_reckoner.pdf.

Identification is considered two ways:

a. collection and

b. verification.

Generally, collection involves asking a customer to state their details and verification involves confirming those details against identification documents such as a driver’s licence or passport. These are discussed below.


A. Collection

The minimum identification information that must be collected for an individual is:

» the full name of the customer

» their date of birth

» their residential address (not a post office box).

What information do you collect from a customer?

Full name

Residential address

Date of birth

Phone number

Email address

Other:


You may need to collect additional identification details about a customer in situations if the customer cannot provide sufficient or satisfactory identification documents, or when a customer is assessed as having a high ML/TF risk rating.

Examples of additional identification details include a Medicare card or a bank statement.

Evidence of a customer’s occupation or their source of funds can often provide further context to their activity and may help to reduce the ML/TF risk for that customer.

What additional information would you ask a high-risk or suspicious customer to provide? (for example, details of their occupation or their place of employment)

B. Verification

Verification is confirming the customer’s identification details against identification documents, such as a driver’s licence or passport. The minimum identification information that needs to be verified for an individual is:

» the customer’s name, and

» their date of birth or residential address.

In situations where the customer cannot provide sufficient or satisfactory identification documents, or when a customer is assessed as having a high ML/TF risk rating, you may need to verify additional identification details about a customer.

You must also check the documents have not expired (a passport issued by the Commonwealth that expired within the preceding two years is acceptable).

List the procedures you undertake when collecting and verifying information about your customers. You should also list what details are recorded and what identification documents (or combination of documents) are sufficient to prove a customer’s identity to you.


What primary photographic documents (or certified copies) will you accept as proof of identity on their own?

Drivers licence

Passport

Proof-of-age card

Other government-issued photographic ID:

What combination of primary non-photographic and secondary documents (or certified copies) will you accept as proof of identity?

Primary non-photographic:

Birth certificate

Citizenship certificate

Commonwealth pension card

Other primary non-photographic document :

Secondary

Centrelink statement


Tax assessment notice

Rates notice

Other secondary document:

What additional customer identification details would you verify for a customer assessed as having a high ML/TF risk rating?

Note: This information is in addition to verifying the minimum identification information (the customer’s name and either their date of birth or residential address).


Describe how you record details of the identification process and documents: (for example, writing down the driver’s licence number, photocopying the identification documents)

Describe your procedure if you form a suspicion about a customer at the time of identification or verification: (for example, the identification document may be false or that the customer is not who they claim to be)

Note: There is no requirement to collect and verify KYC information where customers simply play EGMs or where prize payouts are less than $10,000 and no suspicion arises.


Step 9: Adopt the AML/CTF program and ensure ongoing oversight A director or senior manager must approve your AML/CTF program and maintain ongoing oversight of it.

Document the role and person responsible for approving the program.

I approve this AML/CTF program.

Signed:

Date: / /

Name: Role:


How do you ensure the program is up to date and working?

37/overview

37/module 5

Module 5: Record keepingYou must keep certain records. Specifically, you must:

» retain records of customer identification for seven years after the date you last provided a service to a customer

» keep any transaction records for seven years after the service is provided. This may include prize or credit payout records, payout vouchers or database records

» retain a copy of your AML/CTF program and a record of the adoption of the program for seven years after the program ceases to have effect. If you modify your AML/CTF program, you must keep a copy of the old program for seven years after the date it is superseded.

Quick checklist – records to keep

Customer identification records

Transaction records

AML/CTF program


Customer identification records

Describe procedures to record customer ID documents :

How are records stored?

Retention period: seven years minimum

Transaction records

Describe procedures to record transactions related to the designated service:




AML/CTF program

Describe procedures to retain the current AML/CTF program:



40/overview

40/module 6

Module 6: AML/CTF compliance reportsYou must submit an AML/CTF compliance report every year.

The compliance report requires you to provide information on your compliance with the AML/CTF Act.

Compliance reports must be submitted by 31 March each year.

If you have internet access, you may complete the report through AUSTRAC Online: https://online.austrac.gov.au/ao/login.seam

If you do not have internet access, contact the AUSTRAC Help Desk on 1300 021 037 to request a paper form.

How do you ensure AML/CTF compliance reports are submitted by the due date?

41/appendix 1

Appendix 1: Other useful resources

AssistanceFor any enquiries, please contact the AUSTRAC Help Desk:

» telephone: 1300 021 037 (local call cost within Australia)

» fax: 02 9950 0071

» email: [email protected].

Relevant legislation

» AML/CTF Act, subsection 6(4), table 3 (Gambling services)

» AML/CTF Act, section 36, Ongoing customer due diligence

» AML/CTF Act, section 41, Reports of suspicious matters

» AML/CTF Act, section 43, Reports of threshold transactions

» AML/CTF Act, section 47, AML/CTF compliance reports

» AML/CTF Act, sections 51B, 51D, Enrolment

» AML/CTF Act, section 113, Record keeping

» AML/CTF Act, Part 7, AML/CTF programs

» AML/CTF Rules, Chapters 4, 8, 9, 11, 15 and 19

Useful AUSTRAC publications

» AUSTRAC e-news

» AUSTRAC Regulatory Guide

» AUSTRAC e-learning

» Information brochures:

Ŧ AML/CTF programs

Ŧ Compliance reports

Ŧ Customer identification

Ŧ Getting started with AUSTRAC Online

Ŧ Ongoing customer due diligence

Ŧ Ready reckoner (minimum identification and verification for low-risk customers)

Ŧ Reporting requirements

Ŧ Self assessment questionnaire

Ŧ Small business checklist

» Typologies and case studies reports

» AUSTRAC Guidance Note 08/02 – AML/CTF compliance officers

» AUSTRAC fact sheet – Clubs and hotels

» Money laundering in Australia 2011

» ML/TF risk assessment guide for hotels & clubs licensed to operate electronic gaming machines

All publications are available on the AUSTRAC website (www.austrac.gov.au) or by contacting the AUSTRAC Help Desk.

42/glossary & abbreviations

Glossary & abbreviations

Abbreviations

AML/CTF Anti-money laundering and counter-terrorism financing

AML/CTF Act Anti-Money Laundering and Counter-Terrorism Financing Act 2006

AUSTRAC Australian Transaction Reports and Analysis Centre

DBG Designated business group

EGM Electronic gaming machine

KYC Know your customer

ML Money laundering

TF Terrorism financing

The Act The AML/CTF Act

Glossary

AML/CTF program Under the AML/CTF Act, businesses must have an AML/CTF program consisting of Part A (general, relating to money laundering and terrorism financing risk) and Part B (customer identification).

AUSTRAC Online An online information portal, accessed through the AUSTRAC website, which allows businesses to submit reports to AUSTRAC electronically and to access AML/CTF information.

Compliance report A report submitted by businesses detailing their internal AML/CTF processes. Typically, submission periods are from 1 January till 31 March each year.

AML/CTF compliance guide for hotels & clubs licensed to operate electronic gaming machines /glossary & abbreviations 43

Designated business group

A designated business group comprises two or more related businesses or persons who join together to share certain obligations under the AML/CTF Act.

Designated service

A designated service is any service listed in section 6 of the AML/CTF Act. Designated services cover a wide range of business activities undertaken within the financial services, bullion and gambling sectors. If you provide any one or more of the designated services specified in the AML/CTF Act, you incur obligations under the Act. Typically electronic gaming machine venues are captured under items 5, 6, 9 and 10, table 3, section 6 of the AML/CTF Act.

Part A program Part A of an AML/CTF program relates to identifying, managing and reducing the risk of money laundering and terrorism financing faced by a business (see Chapter 8 of the AML/CTF Rules).

Part B program Part B of an AML/CTF program relates to customer identification procedures (see Chapter 4 of the AML/CTF Rules).

SMR A suspicious matter report is submitted to AUSTRAC under the AML/CTF Act when a business forms a suspicion a matter may relate to an offence against an Australian law, including money laundering, terrorism financing, proceeds of crime, or tax evasion. Any matters relating to terrorism financing must be reported within 24 hours and any other offence must be reported within three business days.

About AUSTRACThe Australian Transaction Reports and Analysis Centre (AUSTRAC) is a government agency established in 1989.

AUSTRAC plays an important role in the global fight against crime and works to support an Australian community hostile to money laundering and the financing of terrorism.

AUSTRAC is Australia’s financial intelligence unit. AUSTRAC collects financial transaction reports, analyses the information and disseminates financial intelligence, which plays an important role in preventing, detecting and prosecuting crime. It assists authorities to trace the trail of illicit money and combat money laundering and other serious and organised crimes.

AUSTRAC is also Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regulator. AUSTRAC regulates businesses that provide financial, gambling and other services specified under legislation. In implementing Australia’s AML/CTF regulatory framework, AUSTRAC assists businesses to fulfil their AML/CTF obligations and guard against attempts to misuse their services for money laundering or terrorism financing.

aml/ctf compliance guide for hotels & clubs licensed to ...€¦ · 04 aml/ctf compliance guide...

Documents