Commonwealth Numbered Acts

ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ACT 2006 (NO. 169, 2006) - SECT 96

             (1)  If:

                     (a)  a financial institution (the first financial institution ) is in a correspondent banking relationship with another person; and

                     (b)  the first financial institution becomes aware that the other person is a shell bank;

the first financial institution must, within:

                     (c)  20 business days after becoming aware as mentioned in paragraph (b); or

                     (d)  such longer period (if any) as the AUSTRAC CEO allows;

terminate the correspondent banking relationship.

Note:          For geographical links, see section 100.

             (2)  If:

                     (a)  a financial institution (the first financial institution ) is in a correspondent banking relationship with another financial institution; and

                     (b)  the first financial institution becomes aware that the other financial institution has a correspondent banking relationship with a shell bank;

the first financial institution must, within:

                     (c)  20 business days after becoming aware as mentioned in paragraph (b); or

                     (d)  such longer period (if any) as the AUSTRAC CEO allows;

either:

                     (e)  terminate the correspondent banking relationship mentioned in paragraph (a); or

                      (f)  request the other financial institution to terminate the correspondent banking relationship mentioned in paragraph (b).

Note:          For geographical links, see section 100.

             (3)  If:

                     (a)  a financial institution (the first financial institution ) makes a request under paragraph (2)(f) of another financial institution; and

                     (b)  at the end of the period of 20 business days after the request was made, the other financial institution has not complied with the request;

the first financial institution must, within:

                     (c)  20 business days after the end of the period mentioned in paragraph (b); or

                     (d)  such longer period (if any) as the AUSTRAC CEO allows;

terminate its correspondent banking relationship with the other financial institution.

Note:          For geographical links, see section 100.

Civil penalty

             (4)  Subsections (1), (2) and (3) are civil penalty provisions.