Part 10.4 sets out special circumstances that justify carrying out applicable customer identification procedure after commencement of provision of online gambling services.
AST AUSTRAC also explained that where special circumstances apply, paragraph 10.4.4 of the rules sets out the period in which the reporting entity is required to carry out applicable customer identification procedure relating to online gambling services.
AST GVT, and State, Territory governments are responsible for implementing National consumer protection framework for online wagering - i.e. this addresses the timeframe in which online wagering providers are required to verify customers’ identity.
Proposed Amendment
The draft instrument above repeals part 10.4 of the rules with effect Sep. 29, 2023.
Reporting entities commencing providing online gambling services to customer on or after Sep. 29 will be required to carry out applicable customer identification procedure.
Required to carry it out before commencing to provide designated service to customer per measure 3 of the National consumer protection framework for online wagering.
Where a reporting entity commenced to provide online gambling services to a customer before that date (Sep. 29, 2023), the specified period remains 72 hours.
AUSTRAC encourages feedback on the draft instrument, draft explanatory statement above from online gambling service providers and other interested stakeholders.
Consultation End
The comment period for this consultation closes on Sep. 4, 2023.
AST AUSTRAC also said it received six submissions regarding the consult and made amendments to the draft instrument in response to the submissions that it received.
The amendments proposed the addition of chapter 82 for a period of 12 months.
Chapter 82 is re special circumstances that justify carrying out the applicable customer identification procedure after commencement of the provision of a designated service.
Chapter 82 will operate from Sep 29, 2023 to Sep, 29, 2024; enable reporting entities to implement required systems changes to ensure applicable customer identification procedure is carried out before commencing to provide a designated service.
On Sep. 15, 2023, further targeted consult on instrument was undertaken with entities who made a submission to AST AUSTRAC, including a consult meeting Sep. 21, 2023.
AST GVT said one written submission was received and considered by AST AUSTRAC.
Sep. 28, 2023 Comments and Guidance
On Sep. 28, 2023, AST AUSTRAC commented re the implementation of strengthened customer identification procedures for online gambling service providers above.
Said this vital measure will help ensure that online gambling services are not exploited by criminals or used by individuals on the national self exclusion register, #143368.
It also reminded that from Sep. 29, 2024, all online gambling service providers must complete applicable customer identification procedures (hereafter, ACIP) before creating an online gambling account or commencing to provide any designated service.
AST AUSTRAC said more information on new ACIP requirements and interim measures (starting Sep. 29, 2023) is set out in guidance for online gambling service providers.
This new guidance is titled Carrying out applicable customer identification procedures after creating an online gambling account, which guides on when ACIP may be carried out after creating an account; and avoiding interrupting ordinary course of business.
In addition, it guides re money laundering/ terrorism financing risk from delaying ACIP.
Managing money laundering/ terrorism financing risks from delaying ACIP; carrying out ACIP as soon as reasonably practicable; guidance ends with customary disclaimer.
Jan. 2024 Updated Guidance
On Jan. 16, 2024, AST AUSTRAC updated the guidance, Carrying out applicable customer identification procedures after creating an online gambling account.
Service providers may carry out ACIP after opening an online gambling account in special circumstances, which are provided under chapter 82 of the AML/CTF rules.
Chapter 82 operates from Sep. 29 2023 to Sep. 28, 2024; will be repealed afterwards.
From Sept. 29, 2024, service providers must ensure they complete ACIP before providing any designated service including creating an online gambling account.
Chapter 82 gives service providers 12 months to implement required system changes.
Document dated Jan. 16, 2023, was received on Jan. 16 due to a fixed feed.
