Anti-money Laundering & Counter Terrorism Financing ACT 2006


What are the new AML/CTF laws?
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF) require those providing designated financial services to:

• identify their customers before providing certain designated services
• report certain transactions, and
• report suspicious matters.

These laws apply to most financial services providers.

What is Money Laundering and Terrorist Financing? 
In practical terms, money laundering is the process whereby criminals attempt to hide and disguise the true origin and ownership of the proceeds of their criminal activities, thereby avoiding prosecution, conviction and confiscation of the criminal funds. 'Money laundering' is the name given to the process by which illegally obtained funds are given the appearance of having been legitimately obtained.

Terrorism is a global problem. Terrorism is the unlawful use, or threatened use, of force or violence against individuals or property to intimidate or coerce governments or societies, often to achieve political, religious or ideological objectives. Terrorism financing can be raised by legitimate sources such as fund-raising activities and business profits, as well as illegitimate sources such as the drug trade and fraud.

What is Know Your Customer (KYC) and what documentation is required?
KYC or the ‘Know Your Customer’ procedure is:

• ensuring that customers are properly identified and that they understand the risks they may pose
• verifying the identity of customers using reliable and independent documentation

To comply with our obligations under the legislation, we must collect certain information about each new investor in our funds, supported by relevant identification documents. Examples include passports and drivers licences for individuals, and evidence of registration for entities such as companies. The information and documents investors need to provide must be submitted at the time of applying for an investment in a Quantum fund.

The complete forms (including instructions for completion) are located at the following link:

 

AML/CTF Identification Forms

Do copies of identification documents have to be certified, and can advisers certify them?
All client identification documents must be certified. In order to certify client documents, an adviser needs to have been an Authorised Representative for at least two years. Others authorised to certify the documents are listed on the AML /CTF Verification Form. 


What records do advisers have to keep?
Advisers will need to retain copies of client records for seven years. A record includes a copy of the fund application form and all client identification documents provided.


How will your Privacy be protected?
We are subject to the Privacy Act 1988 (Privacy Act). The Privacy Act regulates the collection, use, disclosure, quality and security of personal information

 

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