Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If:
(a) a reporting entity has commenced to provide a designated service to a customer; and
(b) when the reporting entity commenced to provide the designated service to the customer, there were special circumstances that justified the carrying out of the applicable customer identification procedure in respect of the customer after the commencement of the provision of the service (see section 33); and
(c) the reporting entity has not previously carried out the applicable customer identification procedure in respect of the customer; and
(d) the reporting entity has not carried out the applicable customer identification procedure in respect of the customer within whichever of the following periods is applicable:
(i) if the designated service is specified in the AML/CTF Rules--the period ascertained in accordance with the AML/CTF Rules; or
(ii) in any other case--the period of 5 business days after the day on which the reporting entity commenced to provide the service; and
(e) neither section 28 nor section 30 applies to the provision of the service;
then, after the end of the period referred to in whichever of subparagraphs (d)(i) or (ii) is applicable, the reporting entity must not continue to provide, and must not commence to provide, any designated services to the customer until the reporting entity carries out the applicable customer identification procedure in respect of the customer.
Note 1: See also the definition of commence to provide a designated service in section 5.
Note 2: See also sections 37A and 38 (when applicable customer identification procedure deemed to be carried out by a reporting entity).
(2) Subsection (1) does not apply if:
(a) under the AML/CTF Rules, the reporting entity is not required to carry out the applicable customer identification procedure in respect of the customer; and
(b) the reporting entity takes such action as is specified in the AML/CTF Rules.
Civil penalty
(3) Subsection (1) is a civil penalty provision.
Periods
(4) A period ascertained in accordance with AML/CTF Rules made for the purposes of subparagraph (1)(d)(i):
(a) must commence at the time when the reporting entity commences to provide the designated service concerned; and
(b) may be expressed to end on the occurrence of a specified event.
(5) Paragraph (4)(b) does not limit subparagraph (1)(d)(i).