AML/CTF ACT

I refer to the recent advices from a stockbroker and comment on the Anti-Money Laundering & Counter-Terrorism Financing Act as requested in an attempt to clarify things (see email exchanges below).

The AML/CTF Act was introduced to regulate some fund-raising transactions. In relation to the issuing and buying/selling of shares it applies only to businesses which provide designated services covering:

  • carrying on a business of buying and selling shares; and
  • shares not issued for the company itself; and
  • it is not an exempt financial operator issue.

Only a business satisfying all three criteria must comply with the AML/CTF Act regime, such as customer due diligence, identification, verification, record keeping and suspicious transactions reporting.

The Act specifically does not apply to a company issuing or facilitating trading in shares in itself, including new capital raising transactions.

So, it would appear from my investigations that the AML/CTF Act does not cover us as a manufacturing company making an occasional new share issue or allowing a share transfer to occur. Therefore, we do not have any obligation to check/report on the financial bona fides (source of funds used, etc) of the purchaser of shares in our company.

*Originally written by Company Secretary, an Australian virtual company secretary service.

Most Popular

How Many Hours Do Lawyers Work?

In the media, we often see lawyers in suits gracing the court halls bringing criminals to justice. However, what we do not...

How Much Do Lawyers Make?

Lawyers are often portrayed to be rich males and females in suits debating and fighting in court. Unfortunately, the media’s portrayal of...

Why Do People Hate Lawyers

Time, accuracy, and complete prudence are three of the most vitally crucial factors that lawyers have to observe and follow. Every lawyer...

What Do Criminal Lawyers Do

Among the many areas in law, criminal cases are the most popular in incriminating and discriminating nature. These types of legal proceedings...

Recent Comments