Commonwealth Numbered Acts

ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ACT 2006 (NO. 169, 2006) - SECT 97

Preliminary risk assessment

             (1)  Before a financial institution (the first financial institution ) enters into a correspondent banking relationship with another financial institution, the first financial institution must carry out an assessment of the risk the first financial institution may reasonably face that the correspondent banking relationship might (whether inadvertently or otherwise) involve or facilitate:

                     (a)  money laundering; or

                     (b)  financing of terrorism.

Due diligence assessment

             (2)  Before a financial institution (the first financial institution ) enters into a correspondent banking relationship with another financial institution, the first financial institution must:

                     (a)  carry out an assessment of such matters as are specified in the AML/CTF Rules; and

                     (b)  prepare a written record of the assessment as soon as practicable after the completion of the assessment;

if carrying out the assessment is warranted by the risk identified in the assessment carried out by the first financial institution under subsection (1).

Note:          For geographical links, see section 100.

Civil penalty

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