BPX AML/CTF POLICY
Date of the last revision: 16 October 2018
PART A - GENERAL
Business Elements
1.
Introduction
This document is BPX’s Anti-Money Laundering and Counter-Terrorism
Financing (AML/CTF) Program adopted under section 81 of
the AML/CTF Act. BPX carries on the business of a digital currency exchange
and provides digital currency exchange services.
The second half of Part A of this document (clauses 11 to 18) and Part B
(clauses 19 to 20) both contain the detailed user-dealing procedures to be
observed by identified personnel of BPX in opening user accounts and
effecting exchange transactions.
2.
AML/CTF commitment
BPX is committed to full compliance with the AML/CTF Act and Rules, and to
striving to achieve the objectives of the AML/CTF Act, in an environment
where online digital currency exchanges are relatively new enterprises and
the full ML/TF ramifications are not fully understood. As part of that
commitment, BPX will review ML/TF risks and the effectiveness of this
program during the early years of its operations more frequently than is
usual under typical Australian AML/CTF practice (see clauses 4, 7 and 8).
3.
AML/CTF program management
BPX’s board of directors must approve any amendment to this program and
must oversee compliance with it. The Managing Director of BPX will report
to the compliance committee about compliance at each regular meeting which
deals with regulatory compliance matters.
The Managing Director will ensure that at all times a senior officer of BPX
is designated and acting as its 'AML/CTF Compliance Officer'.
At the date of this document Dickie Swee Keong Tan is the
AML/CTF Compliance Officer, and the following managers (in order of
succession) will act as AML/CTF Compliance officer if the incumbent or
another named manager is not actually discharging the duties during office
hours:
• Jason Yeates
The AML/CTF Compliance Officer must:
• perform all functions specifically assigned to him/her under this
program;
• report any systemic concerns to BPX’s Managing Director and/or board of
directors; and
• make recommendations (if any) for improvement of the program to the
Managing Director and/or board of directors.
The AML/CTF Compliance Officer must keep records of the discharge of
his/her functions under this program.
By 31 March in each year the AML/CTF Compliance Officer must give AUSTRAC a
Compliance Report for the previous calendar year. The Compliance Report
must be completed on-line at
www.austrac.gov.au/online
.
The AML/CTF Compliance Officer must also advise AUSTRAC, within 14 days of
the change occurring, of changes to BPX's enrolment details (see Chapter 64
of the AML/CTF Rules) and changes in circumstances that could materially
affect BPX's registration as a digital currency exchange provider (section
76P of the AML/CTF Act and paragraph 76.18 of the AML/CTF Rules).
4.
Independent review of program
This program will be reviewed in accordance with AML/CTF Rule 8.6 no later
than intervals of 12 months. Reports arising from each review must be given
to BPX’s board.
5.
Employee due diligence program
Any employee or contractor of BPX, and any employee of a contractor, who is
directly engaged in the design or operation of BPX's IT systems, the
opening of user accounts, the effecting of user transactions or the
maintenance of records related to any of those things (a Sensitive Employee) must be subjected to the following
'employee due diligence' (EDD) procedure.
BPX must, before engagement and at intervals of no more than 24 months:
(a) check that each Sensitive Employee is not on a Prescribed List;
(b) conduct a criminal record check, credit check, bankruptcy check and PEP
check of each Sensitive Employee;
(c) upon any material variation of duties of an existing employee (which
result in the person remaining or becoming a Sensitive Employee), consider
whether any new duties involve greater ML/TF Risk;
(d) not allow a person to be a Sensitive Employee if the person is on a
Prescribed List, has committed a criminal offence involving dishonesty or
terrorism, or appears to pose a ML/TF Risk.
BPX must consider whether each Sensitive Employee is suitable having regard
to ML/TF Risk.
If any employee fails to comply with a requirement of the AML/CTF Dealing
Procedures of this program, the employee must be counselled by his/her
supervisor or the AML/CTF Compliance Officer. In circumstances of repeated
or material breach of AML/CTF Dealing Procedures, BPX may take, or direct a
contractor to take, more stringent action including dismissal of the
employee if appropriate.
6.
Risk awareness training program
Training will be given to each Sensitive Employee on employment or
engagement and again at no longer than 12 monthly intervals. Training will
encompass an understanding of ML/TF Risk and how to identify it, the
procedural requirements of this program and other specific requirements of
the AML/CTF Act (eg suspicious matter reporting).
Training will be also refreshed upon a material increase in duties, a
material change in this program and a material or repeated instance of
non-compliance with this program.
The AML/CTF Compliance Officer will remain up-to-date with the above
training and will maintain higher expertise in ML/TF Risk and the purpose
and requirements of the AML/CTF Act and Rules.
7.
Risk assessment - existing designated services
BPX has assessed the ML/TF Risks in its business operations in accordance
with AML/CTF Rule 8.1.3 and considers that:
• Account opening and exchange transacting;
• BPX's customer engagement and transacting procedures; and
• all associated systems and technologies,
inherently do not pose a high ML/TF Risk (Rather, any material risks would
arise by a combination of the circumstances and the identity and
motivations of the relevant user and any associates. Accordingly, this
program seeks to focus on relevant combinations of such factors, to the
extent that they can be reasonably discerned by BPX. This view of inherent
risk takes into account the prudent administrative procedures of BPX which
include aspects such as careful scrutiny of account opening documentation,
no handling of cash and a prohibition on remitting withdrawal moneys to
third party bank accounts. BPX’s procedures will meet international
best-practice for administration of accounts with financial institutions.)
BPX is committed to keeping its risk assessment of its existing services
under continuing review during the early years of its operations and,
accordingly, will conduct a fresh full risk assessment after each of 6, 12
and 18 months after commencement of operations. BPX will promptly consider
the results of such assessments with a view to updating the effectiveness
of this program, if practicable.
8.
Risk assessment - proposed new investment offering or procedure
Prior to a material variation to BPX's account opening or exchange
transacting procedures, or the offering of new services or the promotion of
services in new markets or jurisdictions, BPX will assess:
• the inherent ML/TF Risk of that proposed new procedure, product or
channel; and
• the ML/TF Risk in circumstances and with types of users which can be
anticipated,
in order to consider whether any amendment to this program is desirable to
materially improve the prospect of identifying, managing or mitigating
ML/TF Risk.
9.
Relationship with AUSTRAC
Subject to any other legal requirements, BPX will conduct all dealings with
officers of AUSTRAC promptly and in good faith.
All written requests, suggestions and comments by AUSTRAC, whether or not
made pursuant to a specific statutory power of AUSTRAC, will be carefully
considered by the AML/CTF Compliance Officer and, if he/she so decides or
if AUSTRAC so requests in writing, also by the board of directors of BPX.
10.
Record-keeping
In order to promote systemic compliance with Division 2 of Part 10 of the
AML/CTF Act, BPX will ensure that all application forms, identity-related
documentation (as set out in Annexure A), transaction documents, trading
records and documents created or collected to comply with this program are
kept for at least 7 years after the relevant user has ceased to be an user.
User Elements
11.
Simplified outline of user-dealing procedures
In summary, the AML/CTF Dealing Procedures (clauses 11 to 20) require (No
“threshold transaction” reports will be required because BPX will not
handle cash (this includes not accepting mandate instructions accompanied
by cash). Item (a) satisfies Division 2 of Part 2 of the Act. Items (c) to
(e) constitute “ongoing customer due diligence” within the meaning of
section 36 of the Act.):
(a) Customer (user) identification and verification as required by the Act
(see clause 18);
(b) Risk rating (see clause 12);
(c) Transaction monitoring (see clause 13);
(d) Possibly further KYC information (see clause 14), if required by this
program;
(e) Possibly enhanced CDD (see clause 15), if required by this program;
(f) Suspicious matter reporting (see clause 16);
(g) Reverification of identity if reasonable doubt about identity (see
clause 20).
12.
Risk Rating
Unless this program or a decision made under this program requires
otherwise, all users and known Beneficial Owners will be automatically
rated as 'Low Risk' (This is the “default” rating. "Low
risk" is a concept of relativity among the risks faced by BPX, not a view
that in abstract any particular person inherently poses a low risk in an
absolute sense.). A user or Beneficial Owner will be considered to be ' High Risk' if listed in the BPX ML/TF Risk Register.
A user or known Beneficial Owner will be listed in the BPX ML/TF Risk
Register if:
• one or more of the following Risk Factors applies:
- the person is a resident or citizen of, or is associated with an entity
in, a non-FATF compliant jurisdiction;
- the person is a known criminal record holder or is known to have engaged
in ML/TF;
- the person's funds have been received other than by transfer from a
financial institution in a FATF compliant jurisdiction or by Australian
cheque;
- a Suspicious Matter Report has been lodged about him/her in the last 3
years;
• the person is a Politically Exposed Person; or
• AML/CTF Compliance Officer decides that doing business with the person
involves materially greater ML/TF Risk than usual.
13.
Transaction monitoring
The AML/CTF Compliance Officer will monitor the opening of all accounts by
an user and the lodgement of orders by an user with a view to identifying
mitigating and managing the risk that the investment might involve or
facilitate money laundering or terrorism financing. The AML/CTF Compliance
Officer will do so by looking for
• unusual patterns of transactions, including transactions with no apparent
economic purpose;
• unusual circumstances;
• any apparent or reasonably conceivable change to the nature or purpose of
the user’s business relationship with BPX;
• changes to digital currency trading patterns coinciding with changes in
Beneficial Ownership or control structures of the user; and
• any appearance or reasonable inference that the user is acting for or
under the influence of another person,
prompted in part by the reports set out below.
In reviewing transactions generally, the AML/CTF Compliance Officer will
consider whether it is appropriate to:
• lodge Suspicious Matter Reports;
• add a person to the ML/TF Risk Register (i.e. re-classification of a
person to High Risk);
• seek further KYC information (see section 14); or
• propose to BPX’s board the modification of this program.
Reports to be prepared
for the AML/CTF Compliance Officer
(some to be prepared by VixVerify):
(a) weekly report of all customer transactions over A$10,000 in value;
(b) weekly report of BPX account withdrawals remitted to customer bank
account in a jurisdiction other than jurisdiction of residence of the
customer;
(c) weekly report of BPX account withdrawals remitted to customer bank
account in currency other than the currency of jurisdiction of residence of
the customer;
(d) weekly report of accounts opened that involved delays or difficulties
due to the nature of the identity documents;
(e) weekly report showing customers whose identity verification has used
non-FATF compliant jurisdictions identity documents;
(f) weekly report from each customer interfacing officer about unusual
customer requests, eg to make a cash deposit;
(g) weekly report of customers requesting password re-set due to lost or
forgotten password;
(h) report of adverse results of a check of names of users and known
Beneficial Owners against the Dow Jones Risk and Compliance database
(Premium Watch lists);
(i) report of each transaction by a PEP or High Risk user or an user
associated with a High Risk known Beneficial Owner (as identified in the
Risk Register);
(j) report of adverse results of a check by a blockchain monitoring tool
service provider.
14.
Further KYC information
In addition to the standard collection of KYC information (see clause 19)
or re-verification (see clause 20), additional KYC information will be
collected in two circumstances:
• upon classification of an user (or one of its associated known Beneficial
Owners) as High Risk;
• an user is the subject of a transaction monitoring report type (b), (c),
(d) or (e) referred to in clause 13 (even if the report did not result in a
reclassified Risk Rating).
In those circumstances the following further KYC information will be sought
by direct request to the user. If a satisfactory response is not received,
the AML/CTF Compliance Officer must contemplate making a Suspicious Matter
Report.
Types of information
• for an individual - any maiden name or former name;
• for an individual - countries of citizenship and residence;
• for an individual - occupation and employer or business activity;
• for non-individuals – the locations of business offices and jurisdictions
of business activity;
• for non-individuals – the control structure of the user including (as
appropriate) details of senior managing officials, holders of 25% or more
voting rights or powers of veto and individuals who hold power to appoint
or remove trustees;
• for foreign companies - whether the company is registered in Australia
with ASIC as a foreign company;
• for all of the above users - the source of the user’s and Beneficial
Owner’s funds & wealth;
• for all of the above users - Beneficial Ownership information including
ultimate Beneficial owner in a case where the owner is another legal
entity.
More generally, the AML/CTF Compliance Officer shall seek to gain some
insight into the circumstances, motivation and methods of the user.
15.
Enhanced Customer Due Diligence (ECDD)
If an user is classified as High Risk or if any suspicion has arisen about
an user or Beneficial Owner, the AML/CTF Compliance Officer must consider
whether any useful purpose would be served by taking any of the following
steps, and must in any event take one or more of such steps ( ECDD):
• Endeavour to obtain further or updated KYC information, as set out at
clause 14 to the extent not already obtained, or seek to obtain such
information from sources other than the user or Beneficial Owner;
• Undertake more detailed analysis;
• Pursue verification or re-verification of information;
• Undertake specific transaction monitoring or analysis;
• Liaise with a relevant regulator or law enforcement authority.
In addition, a Suspicious Matter Report must be lodged if necessary.
More generally, an user or Beneficial Owner subject to ECDD should be
constantly monitored by the AML/CTF Compliance Officer with a view to
considering any suspicions which are relevant to ML/TF Risk. Such
contemplation will not be limited to specific aspects, but will be holistic
and draw upon the AML/CTF Compliance Officer’s training in identifying
ML/TF Risk.
16.
Suspicious Matter Reports
The AML/CTF Compliance Officer will lodge Suspicious Matter Reports
(containing the information required by AML/CTF Rule 18.2 to the maximum
extent possible) as required by section 41 of the AML/CTF Act.
In simple terms, that means lodging a report when the AML/CTF Compliance
Officer or a senior staff member suspects on reasonable grounds:
• that an user is not the person who they claim to be, or that an officer
of a non-individual user is not the person the officer claims to be;
• that information concerning account opening or exchange transacting may
be relevant to the investigation or prosecution of evasion of State,
Territory or federal taxation law, or of an offence against a law of the
Commonwealth or of a State or Territory, or may be of assistance to
enforcement of the Proceeds of Crime Act 2002 (Cth) or of
a corresponding State or Territory law;
• that account opening or exchange transacting is preparatory to a
financing of terrorism offence, or that the information may be relevant to
the investigation or prosecution of an offence of financing of terrorism;
• that account opening or exchange transacting is preparatory to the
commission of an offence of money laundering, or that the information may
be relevant to the investigation or prosecution of a money laundering
offence.
If a staff member forms the suspicion, he/she must notify the AML/CTF
Compliance Officer who will lodge the report. Because of section 123 of the
AML/CTF Act (offence of tipping off), the Officer cannot tell the staff
member that he/she shares the suspicion or has lodged a report.
17.
Special High Risk users
(a)
Senior management approval
If an user or an associated Beneficial Owner is identified as a Foreign
Politically Exposed Person, the AML/CTF Compliance Officer must ensure that
the user and all known information is referred to BPX’s Managing Director
for a decision on whether to establish or continue a business relationship
with the user.
(b)
Ceasing to deal
The AML/CTF Compliance Officer should consider whether a High Risk user who
is known or suspected to have engaged in money laundering or terrorism
financing, or is currently at extreme ML/TF risk, should have his/her/its
BPX account closed.
BPX will not open accounts, or allow accounts to remain open, for a person
whom it becomes aware is on a Prescribed List and should not be dealt with
under Australia’s terrorism legislation (DFAT list, Charter of the United
Nations (Terrorism and Dealings with Assets) Regulations 2002).
18.
Definitions
The following terms have the following meanings:
AML/CTF Act
|
means the
Anti-Money Laundering and Counter-Terrorism Financing
Act 2006
(Cth).
|
AML/CTF Dealing Procedures
|
means clauses 11 to 20 of this program.
|
AML/CTF Rules
|
means rules made by AUSTRAC under the AML/CTF Act.
|
Beneficial Owner
|
means an individual who ultimately owns or controls
(directly or indirectly) an user (within the extended
meaning in paragraph 1.2.1 of the AML/CTF Rules, including
owners of interests of 25% or more).
|
Beneficial Ownership Information
|
means the full name, date of birth, full residential
address and PEP status of each Beneficial Owner of the
user.
|
Designated service
|
has the same meaning as in the AML/CTF Act,
|
FATF
|
means the Financial Action Task Force on Money Laundering.
|
FATF compliant
|
means a jurisdiction that has AML/CTF laws that are
generally regarded as meeting FATF standards (see AUSTAC
website).
|
ML/TF Risk
|
means money laundering or terrorism financing risk.
|
ML/TF Risk Register
|
means an electronic database (or flags and notes in an
existing database such as an account register) about users
which records Risk Information and records current Risk
Ratings.
|
Officer
|
includes any person acting in that role.
|
Passport
|
means a passport or similar document for the purpose of
identity for international travel issued by a national
government.
|
Politically Exposed Person
|
means an individual who holds a prominent public position
or function in a government body (local, state, territory,
national or foreign) or an international organisation (for
example Heads of State or of government, senior
politicians, senior government, judicial or military
officials, senior executives of state owned corporations,
important political party officials) or an immediate family
member of such an individual or a person who has joint
ownership of an entity or assets with such an individual.
|
Prescribed List
|
means the list of terrorists or persons subject to
sanctions maintained by the Department of Foreign Affairs
& Trade or the Reserve Bank of Australia or the
positive results generated by the WorldCheck
database.
|
Risk Information
|
means information about attributes or 'Risk Factors' set
out in clause 12.
|
Risk Rating
|
means a rating of 'Low Risk' or 'High Risk' assigned to an
user or a Beneficial Owner under clause 12, which is
reflected in the ML/TF Risk Register in respect of the
user.
|
User
|
means a proposed customer or a customer of BPX who seeks to
open or has an account with BPX.
|
PART B - CUSTOMER IDENTIFICATION
19.
Customer (user) identification and verification
19.1 Identification
New users must be identified as follows before a BPX account is opened.
The user will be required to provide the following attributes, on its
application form (Basic KYC Attributes). Details of the
Basic KYC Attributes must be recorded by BPX.
(a) Individual applicant(s)
Full name, nationality, residential address and date of birth and a
declaration as to whether he or she is a Politically Exposed Person.
If the applicant is foreign, BPX must also check an appropriate database to
identify whether the applicant is a Politically Exposed Person.
(b) Corporate applicant(s)
Full corporate name, full Australian registered office address (Foreign
companies carrying on business in Australia must register with ASIC. There
are some exceptions, but a company that is a regular "user" is unlikely to
fall within them. See clause 14.), full address of principal place of
business in Australia, ACN or ARBN (or foreign regulator registration
identifier), proprietary/private or public status. If a proprietary or
private company (and not a regulated company), also the full name of each
director and the name, date of birth and full residential address of any
individual who owns more than 25% of the issued capital. Also, if foreign,
country of incorporation and Australian local agent (if any).
A corporation must identify a single representative or joint
representatives to act on behalf of the corporation.
(c) Trustee(s)
Full name of the trust, type of trust, country of establishment of trust,
business name of trustee (if any), full details of the trustees (as above)
according to whether each trustee is an individual or corporation and
Beneficial Ownership Information of any identifiable Beneficial Owners.
Also, unless the trust is a registered MIS (ie has an ARSN), an
unregistered (wholesale client) MIS, an APRA regulated trust or a
government superannuation fund established by legislation, the full name of
each beneficiary of the trust (or if unascertainable because of a class of
beneficiaries, details of that class to the extent practical, eg identify
'family members of x') and the name of the settlor of the trust if alive
and the settlement sum is $10,000 or more, from a copy of the trust deed or
a sufficient extract.
(d) Custodians and nominee companies
Corporate details of custodian or nominee company (see 'corporate
applicants'), AFSL (or foreign equivalent licence) number and name of
beneficiary/beneficiaries.
(e) Partnerships, associations, co-operatives, government bodies
Minimum KYC information as set out in AML/CTF Rules (not set out here as
those entity types are not usual for BPX). If occasion arises, refer to
Annexure A and confer with the AML/CTF Compliance Officer.
(f) High Risk applicants – additional information
Where an applicant is considered High Risk at the time of application, also
obtain from the applicant its/his/her business activity or occupation and
employer.
19.2 Verification
An user’s identity must be verified and the method of verification must be
recorded.
'Verification' requires verification of some of an user’s Basic KYC
Attributes (as follows). To the extent that the information to be verified
is that about an individual or not fully prescribed below, verification
must occur by a means set out in Annexure A (Annexure A is based on the
industry model adopted in
FSC/FPA Industry Guidance Note No 24 “Managing mutual obligations under
Chapter 7 of the Anti-Money Laundering and Counter-Terrorism Financing
Rules
which BPX has considered and regards as appropriate for Low Risk users,
given the ML/TF Risks which it might reasonably face.):
(a) Individual applicant(s)
(i) Full name; and
(ii) Residential address OR date of birth.
(b) Corporate applicant(s)
(i) Existence of corporation* - corporate name, ACN or ARBN (or foreign
regulator registration identifier), proprietary/private or public status;
(ii) Name and address of each beneficial owner of a proprietary or private
company, unless it is licensed by a government regulator (eg an AFSL holder
regulated by ASIC, an ADI regulated by APRA, an energy retailer regulated
by AER).
*If the entity is a domestic listed company, a majority owned subsidiary of
a domestic listed company or is licensed by a government regulator, a
search of ASIC, ASX or the regulator’s database is adequate. Otherwise, a
search of the database of ASIC or the foreign corporate regulator is
sufficient if the applicant is Low Risk. If High Risk, independent and
reliable documentation from a financial institution of which the applicant
is a client is required.
(c) Trustee(s)
Verification by a document issued by, or downloadable from a website of,
ASIC, ATO or another reliable governmental sources that the trust is a
registered MIS (ie has an ARSN), an unregistered (wholesale client) MIS, an
APRA regulated trust or a government superannuation fund established by
legislation.
Otherwise, verification of the full name of the trust by sighting an
original or certified copy of the trust deed or a ATO notice of assessment
for the trust issued within the last 12 months, verification of trustees to
the extent and in the manner set out above according to whether each
trustee is an individual or corporation, and the full name of each
beneficiary of the trust (or if unascertainable because of a class of
beneficiaries, details of that class from the deed and supporting
documentation).
(d) Custodians and nominee companies
Sight copy of AFSL (or foreign equivalent licence to act as a custodian) or
check authorised activities (ie that include custody) on ASIC’s AFSL
Register. If the custodian or nominee company is not an Australian company,
also verification as required for a 'corporate applicant' (see above).
(e) Partnerships, associations, co-operatives, government bodies
As set out as minimum requirements in AML/CTF Rules (not set out here as
those entity types are not usual for BPX). If occasion arises, refer to
Annexure A and confer with the AML/CTF Compliance Officer.
19.3 Discrepancies
Any discernible discrepancy between a claimed identity and the offered
documentation must be recorded and, if it relates to a circumstance other
than a change of name on marriage or an obvious typographical error, must
be subject to further enquiry of the user (and a record kept). Such matter
should be referred to the AML/CTF Compliance Officer.
19.4 Agent to conduct verification
BPX may authorise or allow a person to conduct identification and
verification, on its behalf, in accordance with this program if the agent
is itself a reporting entity (regardless of the type of designated services
which it provides) or is the equivalent under a foreign regime which
conforms to the FATF principles and the person contractually commits to
keeping its records available to BPX.
20.
Reverification of identity
Where BPX suspects on reasonable grounds that an user is not the person
which/who it/he/she claims to be, the user must be flagged or identified on
the Risk Register as an user to be re-verified within 14 days, and the
AML/CTF Compliance Officer should consider whether to seek to obtain
further KYC information under clause 14.
Where the user is a client of a 'financial planner' (within the meaning in
the Guidance Note) which introduced the user, the AML/CTF Compliance
Officer will make contact through the financial planner to the extent
feasible.
Annexure A
Customer identification and verification detail
(Based on FSC/FPA Guidance Note 'Managing mutual obligations under Chapter
7 of the Anti-Money Laundering and Counter-Terrorism Financing Rules
(Schedule 1 to Schedule 8)')
*For use for Low Risk applicants
Schedule 1 Individuals
Where the customer is an individual, BPX must be reasonably satisfied that
the individual is the person that they claim to be.
1.
Collect
(a) Full name;
(b) Date of birth; and
(c) Residential address
Also, collect the following for sole traders:
(d) Full business name (if any);
(e) Full address of the principal place of business (if any); and
(f) ABN (if any)
2.
Verify
2.1 Full name; and
2.2 Either date of birth or residential address.
3.
Verification method
3.1
Standard Customer Verification Procedure
The following procedure should be conducted in all cases, where possible:
Australian Documentation
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Foreign Documentation
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Original or certified copy* of a current:
• Australian driver’s licence containing a photograph of
the person; or
• Australian Passport (It is permissible for a passport
issued by the Commonwealth to have expired within the
preceding two years.); or
• Card issued under a law of a State or Territory for the
purpose of proving a person’s age which contains a
photograph of the person in whose name the document is
issued.
|
• Original or certified copy* of a current:
• Foreign passport or similar document issued for the
purpose of international travel, that contains a photograph
and the signature of the person in whose name the document
is issued
Where any document relied on as part of the procedure is in
a language that is not English, it must be accompanied by
an English translation prepared by an accredited translator
|
*See Schedule 8 on what can be a certified copy or extract of a document.
3.2
Non-Standard Customer Verification Procedure
The following procedure should only be conducted where:
(a) A standard customer verification procedure is unable to be conducted;
or
(b) BPX forms the view that a discrepancy arose from the information
collected and verified using the standard customer verification procedure;
or
(c) Having conducted the standard customer verification procedure, BPX is
not reasonably satisfied that the customer is the individual he or she
claims to be.
Australian Documentation
|
Foreign Documentation
|
An original or certified copy* of:
• Australian birth certificate; or
• Australian citizenship certificate; or
• Pension card issued by Centrelink; or
• Healthcare card issued by Centrelink; and
• An original notice issued to an individual, or a kind
listed below, that contains the name of the individual and
his or her residential address:
- Issued by the Commonwealth or a State or Territory within
the preceding 12 months that records the provision of
financial benefits to the individual; or
- Issued by the Australian Taxation Office within the
preceding 12 months that records a debt payable to or by
the individual by or to the Commonwealth under a taxation
law; or
- Issued by a local government body or utilities provider
within the preceding 3 months that records the provision of
services to that address or to that person; or
• If the customer is under the age of 18, a note that:
- Was issued to by a school principal within the preceding
three months;
- Contains the name of the customer and his or her
residential address; and
- Records the period of time that the customer attended at
the school.
|
In general, BPX should be cautious about arranging for the
provision of a product or service for a customer that
presents foreign-based identification other than a foreign
passport.
However, in the event the customer has not presented a
foreign passport, an example of an acceptable 'non-standard
foreign documentation customer verification procedure'
would be based on:
An original or certified copy* of a current:
• National Identity Card issued by a foreign government
containing a photograph and signature of the person in
whose name the card is issued; and
• Foreign driver’s licence that contains a photograph of
the person in whose name it was issued.
Where any document relied on as part of the procedure is in
a language that is not English, it must be accompanied by
an English translation prepared by an accredited
interpreter.
|
*See Schedule 8 on what can be a certified copy or extract of a document.
Schedule 2 Companies
1.
Collect the following
Australian company
|
Foreign company registered by ASIC
|
Foreign company not registered by ASIC
|
The full name of the company as registered by ASIC
|
The full name of the company
|
N/A
|
The country in which the company was formed, incorporated
or registered
|
N/A
|
Whether the company is registered by the relevant foreign
registration body
|
N/A
|
If the company is registered by the relevant foreign
registration body, the name of the relevant foreign
registration body
|
The full address of the company’s registered office in
Australia
|
If the company is registered by the relevant foreign
registration body, the full address of the company in its
country of formation, incorporation or registration as
registered by the relevant foreign registration body.
OR
|
The full address of the company’s principal place of
business, if any
|
The full address of the company’s principal place of
business in Australia (if any) or the full name and address
of the company’s local agent in Australia (if any)
|
If the company is not registered by the relevant foreign
registration body, the full address of the principal place
of business of the company in its country of formation or
incorporation.
|
The ACN issued to the company
|
The ARBN issued to the company
|
If the company is registered by the relevant foreign
registration body, any identification number issued to the
company by the relevant foreign registration body upon the
company’s formation, incorporation or registration.
|
Whether the company is registered by ASIC as proprietary or
public company
|
If the company is registered by the relevant foreign
registration body, whether it is registered as a private or
public company or some other type of company by the
relevant foreign registration body.
|
If the company is registered as a proprietary company, the
name of each of the directors of the company
|
If the company is registered as a private company by the
relevant foreign registration body, the name of each
director of the company
|
Unless the company is an Australian listed company (or a
subsidiary of one) or a regulated company, the full name,
date of birth and full residential address of each
Beneficial Owner.
|
If the company is a regulated company, the name of the
regulator and details of the relevant licence.
|
If the company is a proprietary company and is not a
regulated company, the name and residential address of any
individual who owns through one or more shareholdings more
than 25% of the issued capital of the company.
|
If the company is a proprietary or private company and is
not a regulated company, the name and residential address
of any individual who owns through one or more
shareholdings more than 25% of the issued capital of the
company.
|
If the company is a majority-owned subsidiary of an
Australian listed company, the name of the Australian
listed company and the name of the relevant
market/exchange.
|
If the company is a listed company, the name of the
relevant market/exchange.
|
2.
Verify the following:
(if the company falls into more than one company type, choose one of the
relevant company types and verify all of the requirements for that type):
Company type
|
Verify the following information
|
Australian company
|
The full name of the company as registered by ASIC.
Whether the company is registered by ASIC as a proprietary
or public company.
The ACN issued to the company.
|
Foreign company registered by ASIC
|
The full name of the company as registered by ASIC.
Whether the company is registered by the relevant foreign
registration body, and if so whether it is registered as a
private or public company.
The ARBN issued to the company.
|
Foreign company not registered by ASIC
|
The full name of the company.
Whether the company is registered by the relevant foreign
registration body and if so:
• any identification number issued to the company by the
relevant foreign registration body upon the company’s
formation, incorporation or registration; and
• whether the company is registered as a private or public
company.
|
Listed company (foreign or Australian)
|
That the company is a listed company
|
Majority-owned subsidiary (foreign or Australian) of an
Australian listed company
|
That the company is a majority owned subsidiary of an
Australian listed company.
|
Regulated company (foreign or Australian)
|
That the company is a regulated company.
|
3.
Verification Method:
(use one or more of the verification methods set out below for the company
type chosen in item 2 of this Schedule):
Australian company
Foreign company registered with ASIC
|
Foreign company not registered with ASIC
|
Listed company
Majority owned subsidiary of an Australian listed
company
Regulated company
|
A search of the ASIC database.
If the ASIC database is not reasonably available, an
original or certified copy* of a certificate of
registration issued by ASIC
|
A search of the relevant foreign registration body.
If that source is not reasonably available, an original or
certified copy* of a certificate of registration (or
equivalent) issued by the relevant foreign registration
body.
If it is not possible to verify the company from either or
both of the above, a disclosure certificate from the
company given by an agent of the company verified in
accordance with Schedule 1
|
A search of the relevant financial market.
A search of the ASIC database.
A search of the licence or other records of the relevant
Commonwealth, State or Territory statutory regulator.
A public document issued by the relevant company.
|
Non-English documents:
Where any document relied on as part of the procedure is in
a language that is not English, it must be accompanied by
an English translation prepared by an accredited
translator.
|
* See Schedule 8 on what can be a certified copy or extract of a document.
4. Definitions for this Schedule:
Australian company
means a company (other than a foreign company) that is registered by ASIC
under the Corporations Act 2001.
Australian financial market
means a financial market operated by:
(a) Australia Pacific Exchange Limited;
(b) Australian Securities Exchange Limited;
(c) Bendigo Stock Exchange Limited;
(d) Stock Exchange of Newcastle Limited; or
(e) any other prescribed financial markets for the purposes of section 9 of
the Corporations Act 2001 (Cth), as amended or replaced from time
to time.
Australian listed company
means an Australian company that is a public company included in the
official list of an Australian financial market.
Foreign company
means a company that is incorporated in a country other than Australia and
its Territories.
Listed company
means:
(a) and Australian listed company;
(b) a foreign company registered with ASIC that is a company included in
the official list of an Australian financial market; or
(c) a foreign company (whether or not registered with ASIC) that is a
company whose shares, in whole or in part, are listed for quotation in the
official list of any of the following financial markets:
• American Stock Exchange
|
• NASDAQ National Market
|
• Borsa Italiana
|
• New York Stock Exchange
|
• Bourse de Paris
|
• New Zealand Stock Exchange
|
• Bursa Malaysia Main Board and Bursa Malaysia Second Board
|
• Stock Exchange of Singapore
• SWX Swiss Exchange
|
• Eurex Amsterdam
|
• Tokyo Stock Exchange
|
• Frankfurt Stock Exchange
|
• Toronto Stock Exchange
|
• Hong Kong Stock Exchange
• JSE Securities Exchange
• London Stock Exchange
|
|
Public company
includes any foreign company that is a listed company and not a private
company.
Public document
has the meaning given to that term in the Corporations Act 2001
(Cth). It includes, for example, an annual report, prospectus, or product
disclosure statement issued by the relevant company.
Regulated company
means a company (whether Australian or foreign) that is licensed and
subject to the regulatory oversight of a Commonwealth, State or Territory
statutory regulator in relation to its activities as a company, including a
company that:
(a) has an Australian financial services licence (AFSL); or
(b) is regulated by the Australian Prudential Regulation Authority.
Schedule 3 Trusts and Trustees
1.
Collect the following information
(if the trust falls unto more that one trust type, choose one of the
relevant trust types and collect all of the requirements for that type):
Registered scheme
Regulated trust
Government superannuation fund
|
Any other trust (including custodian or nominee
company*)
*See below for simplified explanation
|
Full name of the trust
|
Full business name (if any) of the trustee in respect of
the trust
|
The type of trust
|
The country in which the trust was established
|
If the trust is a registered scheme, the scheme’s ARSN.
If the trust is a regulated trust, the name of the
regulator and relevant ABN, registration/licensing details.
If the trust is a government superannuation fund
established under legislation, the name of that
legislation.
|
Full name of each beneficiary
AND/OR
If the terms of the trust identify the beneficiaries by
reference to membership of a class – details of the class
|
Full name and residential address of each trustee who is an
individual
|
Full name and address of each trustee who is not an
individual
|
Full name, date of birth and full residential address of
each identifiable Beneficial Owner
|
Name of settlor of trust if he or she is alive and
settlement sum was $10,000 or more
|
In respect of one of the trustees ( identified trustee), the information
required to be collected for an individual under Schedule 1
or for a company under Schedule 2, as applicable.
|
2.
Verify the following
(if the trust falls into more than one trust type, chooseone of the relevant trust types and verify all of the requirements for that type):
Registered scheme
Regulated trust
Government superannuation fund
|
Any other trust (including custodian or nominee
company)
|
The full name of the trust.
That the trust is a registered scheme, regulated trust or
government superannuation fund, as applicable.
|
The full name of the trust.
In respect of the identified trustee, the information
required to be verified for an individual under Schedule 1
or for a company under Schedule 2, as applicable.
|
3.
Verification method
(use one or more of the verification methods set out below for the trust
type chosen in item 2 of this Schedule):
Registered scheme
Regulated trust
Government superannuation fund
|
Any other trust (including custodian or nominee
company)
|
A search of the ASIC, ATO or relevant regulator’s website
(eg. 'Super Fund Lookup' at
www.abn.business.gov.au
).
A copy or relevant extract of the legislation establishing
the government superannuation fund sourced from a
government website.
|
In relation to the name of the trust:
• an original, certified copy* or certified extract* of the
trust deed or document (including, in the case of an
extract, the part containing the name of the settlor and
the settlement sum); or
• a notice (such as a notice of assessment) issued by the
Australian Taxation Office within the last 12 months; or
• a letter from a solicitor or qualified accountant
verifying the name of the trust; or
• details of a custodian’s AFSL (or foreign equivalent).
|
N/A
|
In relation to the identified trustee, the methods of
verification for an individual under Schedule 1 or for a
company under Schedule 2, as applicable.
|
Non-English documents
Where any document relied on as part of the procedure is in a language that
is not English, it must be accompanied by an English translation prepared
by an accredited translator.
* See Schedule 8 on what can be a certified copy or extract of a document.
4.
Definitions for this Schedule
Registered scheme
means a trust that is a managed investment scheme registered by ASIC.
Regulated trust
means a trust that is:
(a) a self-managed superannuation fund within the meaning of section 19 of
the Superannuation Industry (Supervision) Act 1993 (Cth), the
relevant regulator is the Australian Taxation Office;
(b) a regulated superannuation fund, an approved deposit fund, a pooled
superannuation trust, or a public sector superannuation scheme, within the
meaning of the Superannuation Industry (Supervision) Act 1993
(Cth), including small APRA-regulated funds, the relevant regulator is the
Australian Prudential Regulation Authority; or
(c) any other trust that BPX identifies as a trust that is registered and
subject to regulatory oversight of a Commonwealth statutory regulator in
relation to its activities as a trust.
Government superannuation fund
means a government superannuation fund established by legislation.
Membership of a class
includes for example unit holders of the relevant trust, family members of
a named person/s etc.
SIMPLIFIED PROCEDURE FOR CUSTODIAN OR NOMINEE COMPANY WITH AFSL OR
FOREIGN EQUIVALENT
Collect
• Name of custodian or nominee company, jurisdiction, address, company
number and licence number.
• Full name of immediate beneficiary.
Verify
Verification of the custodian’s AFSL (or foreign equivalent).
The above is not sufficient if the jurisdiction is a 'FATF Blacklist'
jurisdiction.
Schedule 4 Partnerships
1.
Collect the information required in both columns below
Information about the Partnership
|
Information about one Partner
(Verified Partner)
|
• Full name of the partnership.
• Full registered business name and/or trading name (if
any) of the partnership.
• The country in which the partnership was established.
• If the partnership is regulated by a professional
association, the name of the professional association and
relevant membership details.
• If the partnership is not regulated by a professional
association, the full name and residential address of each
partner in the partnership.
|
For at least one of the partners,
information required for an Individual as outline in
Schedule 1.
|
2.
Verify all of the information required in both columns below
Information about the Partnership
|
Information about verified partner
|
Full name of the partnership.
If the partnership is regulated by a professional
association, membership of that professional association.
|
Information as required for an Individual outlined in
Schedule 1.
|
3.
Verification method
Verification of information about the partnership
|
Verification of information about one partner (Verified
partner)
|
In relation to the name of the partnership:
• An original partnership agreement; or
• A certified copy* or certified extract* of the
partnership agreement; or
• A certified copy* or certified extract* of minutes of a
partnership meeting; or
• Membership details independently sourced from the current
membership directory of the relevant professional
association; or
• A search of the relevant ASIC or other regulator’s
database; or
• A notice (such as a notice of assessment) issued by the
Australian Taxation Office within the last 12 months; or
• An original or certified copy* of a certificate of
registration of business name issued by a government or
government agency in Australia; or
• A letter from a solicitor or qualified accountant
verifying the name and existence of the entity.
In relation to the partnership’s membership of a
professional association, membership details independently
sourced from the current membership directory of the
relevant association.
|
Verification procedures as outlined in standard customer
verification procedures in Schedule 1: Individuals.
|
Non-English documents
Where any document relied on as part of the procedure is in
a language that is not English, it must be accompanied by
an English translation prepared by an accredited
translator.
|
* See Schedule 8 on what can be a certified copy or extract of a document.
Schedule 5 Associations
1. Collect
Information about an Incorporated Association
|
Information about an Unincorporated Association
|
Full name of the association
|
One of the following:
• the full address of the association’s principal place of
administration; or
• the full address of the association’s registered office
(if any); or
• the full name and residential address of the
association’s public officer (or of the president,
secretary or treasurer, if no public officer).
|
Full address of the association’s principal place of
administration (if any).
|
Full name of the chairman, secretary and treasurer (or
equivalent officers)
|
Any unique identification number issued upon incorporation
by the relevant registration body.
|
In respect of a member of the unincorporated association
(verified member), information required for an Individual
as outlined in Schedule 1.
|
2.
Verify
Information about an Incorporated Association
|
Information about an Unincorporated Association
|
Full name of the association; and
Any unique identification number.
|
Full name of the association; and
In respect of the 'verified member', information as
required for an individual as outlined in Schedule 1.
|
3.
Verification method
The following procedure should be conducted in all cases, where possible:
Incorporated Association
|
Unincorporated Association
|
• An original, certified copy* or certified extract* of the
Constitution or Rules of the association; or
• Information provided by ASIC or the government body
responsible for the incorporation of the association.
|
• An original, certified copy* or certified extract* of the
Constitution or Rules of the association; or
• In relation to the 'verified member' verification
procedures as required for an individual as outlined in
Schedule 1.
|
Non-English documents
Where any document relied on as part of the procedure is in
a language that is not English, it must be accompanied by
an English translation prepared by an accredited
translator.
|
* See Schedule 8 on what can be a certified copy or extract of a document.
Schedule 6 Registered Co-operatives
1. Collect
(a) Full name of the registered co-operative; and
(b) Full name of the chairman, secretary and treasurer or equivalent
officer in each case; and
(c) One of the following:
(i) Full address of the co-operative’s registered office; or
(ii) Full address of the co-operative’s principal place of operations (if
any); or
(iii) Full name and residential address of the co-operative’s secretary (or
if there is no such person, the co-operative’s president or treasurer); and
(iv) Any unique identification number issued upon its registration by the
relevant registration body.
2. Verify
(a) Full name of the registered co-operative; and
(b) Any unique identification number issued to the co-operative upon
registration.
3.
Verification method
One or more of the following sources must be used to verify the required
information:
(a) An original, certified copy* or certified extract* of the register
maintained by the co-operative; or
(b) Information provided by ASIC or the government body responsible for the
registration of the co-operative.
Non-English documents
Where any document relied on as part of the procedure is in a language that
is not English, it must be accompanied by an English translation prepared
by an accredited translator.
Schedule 7 Government bodies
1. Collect
(a) Full name of the government body; and
(b) Full address of the government body’s principal place of operations;
and
(c) Whether the government body is a body of:
(i) the Commonwealth of Australia; or
(ii) a State, Territory or a Foreign Country (and if so, the name of the
relevant State, Territory of Foreign Country).
2. Verify
(a) Full name of the government body;
(b) Full address of the government body’s principal place of operations;
and
(c) Whether the government body is a body of:
(i) the Commonwealth of Australia; or
(ii) a State, Territory or a Foreign Country (and if so, the name of the
relevant State, Territory of Foreign Country).
3.
Verification method
The following procedure should be conducted in all cases, where possible:
(a) Search the relevant Commonwealth, State, Territory or Foreign Country
website for confirmation of the government body’s existence; or
(b) Review the relevant Commonwealth, State, Territory or Foreign Country
register of government bodies (where available); or
(c) If the government body is established under legislation, a copy or
relevant extract of the legislation obtained from a reliable and
independent source, such as a government website.
Non-English documents
Where any document relied on as part of the procedure is in a language that
is not English, it must be accompanied by an English translation prepared
by an accredited translator.
Schedule 8 Certified copy (of an original document)
Certified copy
means a document that has been certified as a true copy of an original
document by one of the persons described in paragraphs 1 – 15 below.
Certified extract
means an extract that has been certified as a true copy of some of the
information contained in a complete original document by one of the persons
described in paragraphs 1 – 15 below.
People who can certify document or extracts are:
1. a lawyer – a person who is enrolled on the roll of the Supreme Court of
a State or Territory or High Court of Australia, as a legal practitioner
(however described);
2. a judge of a court;
3. a magistrate;
4. a chief executive officer of a Commonwealth Court;
5. a registrar or deputy registrar of a court;
6. a Justice of the Peace;
7. a notary public (for the purposes of the Statutory Declaration
Regulations 1993);
8. a police officer;
9. a postal agent – an agent of the Australian Postal Corporation who is in
charge of an office supplying postal services to the public;
10. the post office – a permanent employee of the Australian Postal
Corporation with 2 or more years of continuous service who is employed in
an office supplying postal services to the public;
11. an Australian consular officer or an Australian diplomatic officer
(within the meaning of the Consular Fees Act 1955);
12. an officer with 2 or more years continuous service with one or more
financial institutions (for the purposes of the Statutory Declarations
Regulations 1993);
13. a finance company officer with 2 or more continuous years of service
with one or more financial companies (for the purposes of the Statutory
Declarations Regulations 1993);
14. an officer with, or authorised representative of, a holder of an
Australian financial services licence, having 2 or more continuous years of
service with one or more licensees; and
15. an accountant – a member of the Institute of Chartered Accountants in
Australia, CPA Australia or the National Institute of Accountants with 2 or
more years of continuous membership.