Anti-money laundering questions and answers

1.

What are the new anti-money laundering laws?

The Government has introduced new laws in the Anti-Money Laundering and Counter Terrorism Financing (AML/CTF) Act 2006. The new laws require businesses that provide certain financial services to identify their customers before providing a service, and to report both suspicious transactions.

2.

What is Money Laundering?

Money laundering is the process criminals use to disguise the source of illegally obtained money so that it appears to have come from legitimate sources.

3.

What is Terrorist Financing?

Terrorist financing is the act of providing financial support to terrorists or terrorist organisations to enable them to carry out terrorist acts.

Why has the new legislation been introduced?

Australia has implemented new laws to improve its existing anti-money laundering and counter terrorism financing system and bring it in line with international standards. The new laws will make it harder for criminals to use the profits of crime and terrorists to receive money to carry out terrorist acts.

What are the requirements of the new legislation?

When applying for a new product or service, individual investors will need to provide verification information such as a certified copy of a passport or driver’s licence. For non-individuals such as companies and trusts, more information will be required, for example a certified copy of an ASIC certificate of registration or trust deed.

What are the products and services covered by the new laws?

All financial services providers offering products covered by the new legislation, including managed investments, superannuation and shares in a listed company or trust, must meet the new customer identification requirements. As such all AMP Capital products will be covered.

Will the product application forms change?

This will vary from one product issuer to another. For AMP Capital products, our Product Disclosure Statements (PDS) will be updated and new application forms which reflect the additional information requirements will be available for 12 December 2007. Please check the website for current versions of PDS. Current Information Memorandums are available by calling Client Services on 1800 658 404.

How will AMP Capital safeguard information?

All financial services providers covered by the new legislation are required to keep client information in a safe and secure environment, as required by the AML/CTF Act and the Privacy Act 1988 (Privacy Act). The Privacy Act covers the collection, use, disclosure, quality and security of personal information.