Item 54 of table 1 in section 6 of the AML/CTF Act prescribes Australian Financial Services Licensees who make arrangements for a person to receive a designated service as designated services providers and therefore regulated by the Act.

AFS licensees who are caught by Item 54 but don’t provide any other designated services (such as financial advisers making arrangements for a customer to receive another AML/CTF designated service) are subject to reduced obligations under the Act (see sections 26T, 30(10), 39(7), 44(6), 47(5) of the amended Act)..

Their program is no longer callled a “Special Program”.

These reporting entities are only required to undertake an AML/TF risk assessment, and develop and implement AML/CTF policies that deal with how the reporting entity undertakes initial CDD.

New subsection 30(10) provides an exemption from ongoing CDD for a reporting entity in Item 54 of table 1 in section 6 of the AML/CTF Act.

This item covers a reporting entity, in the capacity of a holder of an AFSL, making arrangements for a person to receive a designated service, other than a service covered by that Item. This continues an existing exemption under subsection 36(3) of the AML/CTF Act.

Any business that provides a designated service in addition to providing an item 54 service must comply with the full range of AML/CTF obligations for those services.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.