AST AUSTRAC published draft Anti-money laundering and counter-terrorism financing rules amendment (chapter 21 amendments) instrument 2023, which includes a clarification re domestic financial market operator Australian Securities Exchange Ltd.
It clarifies that this firm (ASEL) is not a prescribed financial market under ASTCA, but rather, has been specified as an exempt financial market by the CEO of AST AUSTRAC.
In addition, AST AUSTRAC published a draft explanatory statement regarding same.
Follows AST GVT Jun. 2021 issued amendments to AML CFT rules 2007, see #111550.
It said chapter 21 of AML/CFT rules currently provides exemptions from the AML/CFT Act for the issuing or selling of securities or derivatives in certain circumstances.
Includes the issuing/selling of securities/derivatives on certain financial markets where there is no reasonable way for the issuer/seller to know the identity of the buyer.
In 2012, as a result of public consultation on an amendment of chapter 21 to include certain foreign financial markets, AST AUSTRAC was asked to clarify its position.
Specifically its position on if the existing chapter 21 exemption for prescribed financial markets applied to the Sydney Futures Exchange Ltd (which is now known as ASEL).
In response, AST AUSTRAC considered risk associated with including ASEL in chapter 21 exemption, and whether rationale for exempting prescribed and foreign financial markets applied similarly to ASEL; as a result, ASEL was included in the definition.
Namely definition of prescribed financial market for purposes of ch21 of AML/CTF rules.
AST AUSTRAC said the draft instrument makes amendments to the AML/CFT rules.
In addition to the proposed clarification mentioned above, draft amends para 21.4(8).
It amends this paragraph 21.4(8) in order to extend the exemption to apply to market participants of financial market operator FEX Global Pty Ltd in the same way as ASEL.
Office of Best Practice and Regulation advised that Regulatory Impact Statement is not required as amendments are unlikely to have a more than minor regulatory impact.
AST AUSTRAC encourages feedback on the draft instrument and explanatory statement from financial service providers as well as other interested stakeholders.
The comment period for this consultation closes at midnight (AEST) on Dec. 13, 2023.
B/D; Corp; Exch
CP, Info 11/16/2023; Citation: ASTCA; AML/CFT Act; Anti-money laundering and counter-terrorism financing rules instrument 2007 (no. 1);