Anti Money Laundering

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Anti Money Laundering

• Using Orion to activate the Australian AML
  legislation

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The AML/CTF act refers to definitions in other
pieces of legislation, including the Australian
Constitution It is intended that only enough of
these other acts be read to flesh out the
definitions
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Defining Terms
5 Definitions In this Act account includes (a)
a loan account (for example, a credit card
account) and (b) an account of money held in
the form of units in (i) a cash management
trust or (ii) a trust of a kind prescribed by
the AML/CTF Rules. account provider if an
account is with a person, the person is the
account provider for the account. acquiring in
determining whether something is a designated
service, acquiring includes anything that, under
the regulations, is taken to be acquiring for
the purposes of this definition. ADI (short for
authorised deposit-taking institution) means
(a) a body corporate that is an ADI for the
purposes of the Banking Act 1959 or (b) the
Reserve Bank of Australia or (c) a person who
carries on State banking within the meaning of
paragraph 51(xiii) of the Constitution. AFP
member (short for Australian Federal Police
member) means a member or special member of the
Australian Federal Police. allowing a
transaction in determining whether a person has
allowed a transaction, it is immaterial whether
the person was obliged to allow the
transaction. AML/CTF Rules (short for Anti-Money
Laundering/Counter-Terrorism Financing Rules)
means the rules made under section 191.
Note the forward reference to AML/CTF, as the
definitions are in alphabetical order, the use of
the same term to define a term - allow a
transaction
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I before E
We need to have already required the properties
of an object so we can group things appropriately
when defined terms are used together. Some
defined terms are used before they are defined,
so the machine needs to read the definitions in
the order they are required, rather than the
order in the document. Sometimes it will
encounter circular definitions - A is defined in
terms of B and C, and C is defined in terms of A
(and sometimes it is acceptable). Sometimes,
there will be no definition. When reading
existing legislation, we will end up with a set
of explanatory notes, that any reader needs, for
errors or omissions.
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Complex Definition
(1) For the purposes of this Act, if (a) a
person (the originating entity) instructs a
person (the originating institution) to transfer
money controlled by the originating entity to a
third person (the ultimate recipient) on the
basis that the transferred money will be made
available to the ultimate recipient by (i)
being credited to an account held by the ultimate
recipient with a fourth person (the
destination institution) or (ii) being paid to
the ultimate recipient by a fourth person (the
destination institution) or (b) a person (the
ultimate recipient) instructs a person (the
originating institution) to transfer money
controlled by a third person (the originating
entity) to the ultimate recipient on the basis
that the transferred money will be made available
to the ultimate recipient by (i) being credited
to an account held by the ultimate recipient with
a fourth person (the destination institution)
or (ii) being paid to the ultimate recipient by a
fourth person (the destination institution) the
instruction is a multiple-institution
person-to-person funds transfer instruction.
This is of form If A and B, C is D
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Complex Definition
Multiple threads through object group
Object being defined
The definition becomes complex and has multiple
threads, but is exactly what the legislation says
(and implies)
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Sample Text
74 Anti-money laundering and counter-terrorism
financing programs (1) An anti-money laundering
and counter-terrorism financing program is a
program that (a) is designed to ensure that
appropriate action is taken to (i) identify
and (ii) materially mitigate the risk that the
provision by the reporting entity of designated
services at or through a permanent establishment
of the entity in Australia might (whether
inadvertently or otherwise) involve or facilitate
a transaction that is connected with the
commission of (iii) a money laundering offence
or (iv) a financing of terrorism offence
and (b) requires the reporting entity to monitor
the provision by the reporting entity of
designated services at or through a permanent
establishment of the entity in Australia, with a
view to (i) identifying and (ii) materially
mitigating the risk that the provision by the
reporting entity of a designated service at or
through a permanent establishment of the entity
in Australia might (whether inadvertently or
otherwise) involve or facilitate a transaction
that is connected with the commission of (iii)
a money laundering offence or (iv) a financing
of terrorism offence and (c) requires the
reporting entity to take such action as is
specified in the AML/CTF Rules in relation to the
provision by the reporting entity of designated
services to customers who are politically exposed
persons and (d) requires the reporting entity to
take such action as is specified in the AML/CTF
Rules in relation to the provision by
the reporting entity of designated services at or
through a permanent establishment of the entity
in a foreign countryand (e) includes a system
directed towards ensuring that the reporting
entity complies with this Act and (f) complies
with such requirements as are (i) specified in
the AML/CTF Rules and (ii) declared by the
AML/CTF Rules to be requirements relating to
ongoing customer due diligence and (g) complies
with such other requirements (if any) as are
specified in the AML/CTF Rules.
The terms in blue are defined terms, making it
much easier to handle the text. The text is
defining another term (in red), already found in
formal definitions and pointing to this clause
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AML/CTF Rules
Much of the text is prescriptive, so it is not
easily turned into simple rules. Making the text
directly generate the structure used for analysis
and querying ensures that meaning is not lost or
corrupted in the process.