Added; 7/30/2015

In the latest development from AML (anti-money laundering)/CTF (counter-terrorism financing) ruling being developed under AUSTRAC (Australian Transaction Reports and Analysis Centre) there will be a focus on the measures that banks and financial institutions undertake in order to complete their CDD (customer due diligence). 

As part of a wider and more in-depth range of obligations placed on financial services industry, by the AML/CTF Act, it has now been proposed that financial institutions will now be able to source the relevant information on a customer from sources other than the customer.
 
Current legislations requires that information such as reliable independent source documents, data or information verifying customer identity is to be sourced directly from the customer.
 
However, under this latest amendment, KYC (know your client) documentation and data extracted from other sources would be eligible for completing the required CDD in the client on-boarding process.
 
This proposed change in ruling sees the removal of the word “from” replaced by the word “about” in Chapter 4 of the AML/CTF Rules and effectively enables more flexibility with regards the identification of a customer.
 
With such an amendment in place, financial institutions would be able to collect information though more efficient and effective methods.
 
Bureau van Dijk has tailor-made platforms that help financial institutions do their customer due diligence -  see our KYC and compliance related solutions for more details.
 
For more information please read the news from AUSTRAC website

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