HOFS Anti-Money Laundering Policy

INTRODUCTION

1. Howard-Osmond Financial Services Pty Ltd (“Howard-Osmond”) is committed to meeting its obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and its associated Rules – the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1).
2. The Directors have approved this policy and the procedures detailed in it and the expectation is that all staff will read the policy and comply with the obligations and procedures.
3. This document, and any variations to it, will be retained by the directors for a period of 7 years from the date Howard-Osmond is no longer required to comply the AML/CTF requirements.
4. A staff member has been appointed as the AML / CTF officer and this person should be the first point of contact in clarifying matters relating to AML / CTF.
5. The AML / CTF Act is designed to assist in combating money laundering and terrorism financing.
6. 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.
7. On the other hand, terrorism financing includes the financing of terrorism acts and of terrorists and terrorist organisations. It involves a person providing or collecting funds where the person is reckless as to whether the funds will be used to facilitate or engage in a terrorist act.  An example would be the provision of any kind of asset in any form, including but not limited to, bank accounts, travellers’ cheques, bank cheques, money orders, shares, securities, drafts and letters of credit.
8. Howard-Osmond is a ‘reporting entity’ for the purposes of the AML/CTF Act and is required to comply with the AML/CTF legislation.
9. Reporting entities that do not develop and implement robust AML/CTF control frameworks face increased risk of being used to facilitate money laundering and terrorism financing. This could result in both business and regulatory risks that may well result in costly financial and reputational damage.
10. Where reporting entities do not comply with the AML/CTF legislation, Part 15 of the AML/CTF Act (Enforcement) illustrates the substantial penalties that may be imposed for a serious offence. The maximum civil penalty for a body corporate such as Howard-Osmond is up to $11 million and up to $2.2 million for an individual.

KEY ELEMENTS OF THE AML/CFT ACT

11. The AML/CTF Act adopts a risk-based approach to AML/CTF compliance, setting out the principal obligations of businesses, but giving them the flexibility to develop procedures according to the different risks they identify using their own AML/CTF programs.

ANALYSIS OF HOWARD-OSMOND FINANCIAL SERVICES

12. Howard-Osmond has put in place an AML-CTF program for the identification and verification of our clients. AML-CTF programs are required under the Act as a way for reporting entities to identify, mitigate and manage the risk of their products or services facilitating money laundering or the financing of terrorism.
13. In setting up our program consideration was given to:

• the AML / CTF requirements applicable to our business
• the AML / CTF risk profile of clients
• the AML / CTF risk of the services provided
• the methods by which the services are delivered
• AML / CTF risk profiles of foreign jurisdictions dealt with; and
• risks resulting from the provision of services through permanent offices in foreign countries.

14. Howard-Osmond has considered the AML / CTF risk its services pose and has concluded that because;

• Our client base comprises investors and superannuants and those requiring personal risk insurance.
• Our client base is domiciled in Australia.
• We only deal in financial products offered in Australia.
• Financial products are issued by APRA / ASIC / ASX regulated issuers.
• Our services are delivered face to face and we comply with the Corporations Act requirements in respect of our advisory and dealing business.
• We do not transfer money overseas for clients.
• We only operate in Australia.
• our business is ‘low risk’ in respect of the services we provide and therefore we will comply with the minimum information and verification requirements.

CLIENT TYPE

15. Howard-Osmond provides designated services to three client types being individuals, companies and trusts. We do not generally provide designated services for associations, partnerships, co-operatives or government bodies or officials of an overseas government however should the need arise to provide a dealing service to one off these entities the applicable information collection and verification will be conducted.
16. Because of the services we offer and our product range and the category of our clients, we regard our clients as ‘Low Risk’ in respect of them engaging in money laundering or counter terrorism financing activities.

WE WILL ONLY PROVIDE SERVICES TO LOW RISK CLIENTS.

17. Representatives must not provide a designated service to persons that may be regarded as ‘High Risk’.
18. Indicators of persons that may be regarded as high risk are;

• Not an Australian citizen or resident.
• Persons classified as Politically Exposed Persons (‘PEP’), that is, individuals who are or have been entrusted with prominent public functions in a foreign country, for example Heads of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, important political party officials. Business relationships with family members or close associates of PEPs involve reputational risks similar to those with PEPs themselves. The definition is not intended to cover middle ranking or more junior individuals in the foregoing categories.
• Produces identification documentation issued by a high–risk jurisdiction.
• An Australian resident / citizen but maintains bank accounts in other jurisdictions.
• Wanting to deal in products offered by entities in other jurisdictions, other than through those offered by APRA / ASIC / ASX regulated issuers (an international share fund which is included as an option in an Australian managed fund or trading in securities on recognised exchanges through an Australian broker would be permitted).
• The source of the money to be invested in an Australian product is located another jurisdiction (ie, foreign bank accounts).
• It is difficult for you to establish the source of the money.
• A request to transfer money from Australia to another jurisdiction.
• There doesn’t appear to be any rationale as to why the client wants to carry the transaction.
• The client does not provide information that would normally be required to effect the transaction (or provide financial product advice).
• For any other reason that you may be suspicious.

A variety of domestic and international resources are available to assist in determining the AML/CTF risk of our customers, foreign jurisdictions, products and services and methods of designated service delivery. For examples, see the Department of Foreign Affairs and Trade ‘Consolidated List’ which is available at:

http://www.dfat.gov.au/icat/freezing_terrorist_assets.html.

19. While we do not provide services for these persons you should be aware of the obligation to report ‘suspicious’ matters to AUSTRAC (see Reporting to AUSTRAC in this policy).
20. From your interaction with the person you should consider if their enquiries could be regarded as suspicious and reported to AUSTRAC even though you may not have the person’s personal details.
21. You should contact the Head of Compliance or a Responsible Manager if you suspect a person to be ‘High Risk’.

DESIGNATED SERVICES

22. The designated services in the tables of section 6 of the AML/CTF Act covers a wide range of business activities undertaken within the financial services, bullion and gambling sectors. The Act also provides for additional designated services to be specified in regulations.
23. Howard-Osmond is a ‘reporting entity’ for the purposes of the AML/CTF Act as it provides the ‘designated service’ specified in item 54 of table 1 of section 6 of the AML/CFT Act. Under item 54, in its capacity as holder of an Australian financial services licence, we make arrangements for our clients to receive designated services (other than a service covered by item 54)
24. Under Part 2, Div 4, paragraph 32 of the AML/CTF Act Howard-Osmond may not commence to provide a designated service (arrange for a client to deal) without first undertaking the relevant collection of identification and verification process. The commencement of a designated service does not occur until the client has signed the relevant documents (eg PDS application or placed an instruction to deal in securities) however given Howard-Osmond is also required, pursuant to Corporations Act, to conduct an information gathering session in order to provide advice, we consider it is appropriate that identification collection and verification will occur at the same time. This allows the timeframe for outstanding documents to be provided and further clarification on documents if necessary.
25. While the AML / CFT legislation does not require identification and verification when arranging to deal in particular products for a client (eg, risk insurance and SMSF) as a matter policy our representatives will collect and verify client information irrespective of the product.
26. In most cases Howard-Osmond under Part 2, Div 7 paragraph 38(a) of the AML/CFT Act will be the first reporting entity and our product providers will be the second reporting entity as per Part 2, Div 7, paragraph 38(c) of the AML/CTF Act.
27. In relation to Howard-Osmond providing a designated service within Item 54 of table 1 of section 6 of the AML/CFT Act, to a particular client the second reporting entity has determined it can rely upon Howard-Osmond to carry out applicable client identification procedures and has access to the records we retain in relation to this identification in order for that second reporting entity to provide it’s designated service the client.

OBLIGATIONS

28. Under the AML/CTF Act, persons who provide designated services to a client become reporting entities and incur the following key obligations:

• Develop and maintain an AML/CTF program. A reporting entity must have and comply with an appropriate AML/CTF program.Due to the nature of the designated services provided by Howard-Osmond, the AML/CTF Act requires that we have a Special Anti-Money Laundering and Counter-Terrorism Financing Program in accordance with section 86 of the Act.  The sole or primary purpose of such a program is to set out the applicable client identification procedures for the purposes of applying the AML/CTF legislation. There are three types of anti money laundering and counter terrorism financing programs being a standard, joint and special program.   Howard-Osmond in accordance with Part 7, Div 3 of the AML/CTF Act may only adopt a special anti money laundering and counter terrorism financing program as a result of providing only designated services under Item 54.This program stipulates that Howard-Osmond is only required to meet the obligation of Part B of the program being client identification procedures.
  Under Part B the AML/CTF program should enable us to be reasonably satisfied that:

• • • an individual client is who he or she claims to be
    • in the case of a client who is not an individual, the client exists and in certain cases, the relevant details about beneficial owners (e.g. companies and trust) as prescribed in Chapter 4 of the AML/CTF Rules have been collected.
    • establish what information should be collected and verified
    • Determine if electronic data is reliable and independent for verification purposes.
    • Determine to what extent a clients agents should be verified.
    • Respond to any discrepancies.
• Howard-Osmond is not required to comply with requirement of ensuring the AML/CTF program of providing risk awareness training, employee due diligence, a compliance officer or independent reviews as Howard-Osmond falls under the special anti money laundering and counter terrorism financing program.

IDENTIFICATION AND VERIFICATION

29. As part of its AML/CTF programs, a reporting entity must verify a client’s identity before providing them with a designated service.
30. The information that must be collected and verified is detailed in the attachments to this policy. This information and verification is in respect of clients who are categorised by us as ‘Low Risk’.
31. Some product issuers have agreed that licensees / advisers can complete a ‘Client Identity Form’ and lodge this form with the PDS application. You are permitted to use this form. You should note however, that this procedure only assists the product issuer in complying with its AML / CTF obligations and you must still retain copies of the verifying document you sighted for our records in addition to a copy of the form.
32. Where a client has appointed an agent to act on their behalf the following information must be collected:
    • the full name and contact details of each individual who is the agent of the client; and
    • written and signed authorisation from the client appointing the person as agent.
33. In addition, the agent’s identify must be verified and verification records (and clients authorisation) must be retained.

RE-IDENTIFICATION AND RE-VERIFICATION PROCEDURES

34. If, before you conduct further transactions for the client, you have any suspicions about the client, you should again collect the identification information as detailed in the attachments to this policy (preferably, any re-identification information collected should be different to that collected during the original client identification procedure).
35. You should then verify that information by obtaining documents that were not presented during the original verification process (see attachment to this policy).

MITIGATING RISK WITH VERIFICATION OF IDENTIFICATION DOCUMENTS

36. Documentation is not considered reliable and independent if it is:
    • Expired
    • Not written in English
    • Photographs are blurred or difficult to distinguish
    • Signatures cannot be confirmed
    • Not an original or certified copy
37. Should this occur the client must be requested to provide further evidence of identify and unless Howard-Osmond is satisfied, the designated services will not be provided.
38. For individuals that further evidence can be those documents described as ‘non standard’ in the attachment to this policy.
39. If, when verifying the documentation you become suspicious about the identity of the client, or suspect a client is committing an offence, you must report this to Head of Compliance or the Responsible Manager immediately.

RECORD KEEPING

40. A reporting entity must make and retain certain records for 7 years.
41. Howard-Osmond is obliged to retain the record or copies of verification (identification) records for period of 7 years after the making of the record.
42. These records, at a minimum, will be;

• a certified copy* of an original acceptable document given to us by the client; or
• a copy, taken by us, of an original acceptable document that has been signed and endorsed by our financial planner, who has 2 years or more experience, and that states;
  1. is as a true copy of the original, and;
  2. that the client identified in the document is the client receiving the service.

43. These documents must be retained in hard copy on the client’s file or in soft copy in the client’s database or directory managed by us.

*The persons who can certify are named in Attachment H.

REPORTING TO AUSTRAC.

44. A reporting entity must report suspicious matters, certain transactions above a threshold, and international funds transfer instructions.
45. Howard-Osmond is required to report suspicious matters to AUSTRAC.

What is a Suspicious Matter Report?

46. Suspicious Matter Reports must be provided to AUSTRAC if suspicions arise in the course of dealing with a client that are connected to the actual or potential provision of a designated service. If you are dealing with a client, and you form a suspicion about a matter, this must be reported to AUSTRAC.

What triggers suspicious matter reporting obligations?

47. Suspicions arise when the adviser / reporting entity forms a suspicion on reasonable grounds:
    • That the client is not the person who they claim to be. (This category of suspicious matter is particularly important for advisers to be aware of, particularly those directly involved in the client identification process); or
    • That the client is not the person who they claim to be. (This category of suspicious matter is particularly important for advisers to be aware of, particularly those directly involved in the client identification process); or
    • That the information provided by the client may be relevant to the investigation of evasion of a taxation law, or might be of assistance to enforcement in the Proceeds of Crime Act or relevant to an offence of a law; or
    • That the provision of the service is preparatory to terrorism financing; or
    • That the provision of the service is preparatory to money laundering.

What sort of factors could be considered in assessing what is suspicious in practice?

• The behaviour of the person receiving the designated service.
• The person is unable to produce identity verification documents.
• The identity documents appear to have been tampered with.
• The business background of the person.
• The use of aliases and / or multiple addresses.
• Unusual business dealings where large amounts of cash are involved.
• Enquiring about investing in high risk countries or ‘tax havens’.
• Complex business or tax structures.
• The person is from a high risk country.
• Requests to transfer money to another country.

48. If you have suspicions about a client do not discuss the matter with the client and do not arrange for the transaction to take place but immediately notify the Responsible Manager or Head of Compliance.

HOW LONG DO WE HAVE TO SUBMIT A SUSPICIOUS MATTER REPORT TO AUSTRAC ONCE A SUSPICION ARISES?

49. In normal circumstances we must submit a Suspicious Matter Report to AUSTRAC within 3 business days of when the suspicion is formed.
50. However, if the suspicion relates to the financing of terrorism we must submit the Suspicious Matter Report within 24 hours of forming the suspicion.
51. Howard-Osmond is not required to meet the reporting obligations of Part 3, Division 3 – [Threshold transactions] of the AML/CTF Act given our designated service is only Item 54. A threshold transaction is the movement of physical currency, or e-currency, greater than an amount of $10,000.
52. Howard-Osmond is required to meet the reporting obligation of Part 3, Division 4 – [International Funds transfer instructions], however we do not facilitate this type of transaction thus is it unlikely this obligation would arise. Before any arrangement is made to transfer funds offshore for any client you must bring this matter to the attention of the Head of Compliance or Responsible Manager.
53. Howard-Osmond is not required to meet the reporting obligations of Part 3, Division 5 – AML/CFT Compliance Reports of the AML/CTF Act given our designated service is only Item 54.
54. Howard-Osmond is not required to implement ongoing client due diligence in accordance with Part 2, Div 6, paragraph 36 of the AML/CFT Act given our designated service is only Item 54.

REVIEW OF THE POLICY

55. This policy will be reviewed annually by the Responsible Manager or other nominated person to ensure it remains relevant to our business. Should amendments be required either at that time, or in any intervening period, those amendments will be made immediately and staff notified.

AML / CTF TRAINING

56. All staff have received AML / CTF training.
57. All newly appointed staff (administrative and financial advisers) will receive training as part of their induction.

 

 

CONTACTING AUSTRAC

Phone:             1300 021 037

Website:          www.austrac.gov.au

Email:              [email protected]

 

ACCOUNTABILITY

1. Howard-Osmond Board
2. Compliance Committee

RESPONSIBILITY

1. Managing Director

 

ATTACHMENT A – IDENTIFICATION OF INDIVIDUALS

Conducting a domestic documentation identification procedure involves:

1. Obtaining the client’s full name, date of birth and residential address.
2. Verifying the client’s full name and either date of birth; or residential address.

Standard client ID procedure A standard client identification procedure should be conducted in all cases where possible, otherwise conduct a non-standard identification procedure.

Standard domestic documentation identification procedure Complete steps I and II as above. Verify this information from either an original or certified copy of a current:

– Australian driver’s license containing a photograph of the person; or

– Australian passport (it is also permissible for a passport to be issued by the Commonwealth to have expired within the preceding 2 years); or

– Card issued under a State or Territory law, for the purpose of proving a person’s age, containing a photograph of the person in whose name the card is issued.

Standard foreign documentation identification procedure Complete Steps I and II as above. Verify this information from an original or certified copy of a foreign government issued passport or similar travel document.

Where any document relied on as part of the procedure is in a language that is not English, it must be accompanied by an English translation prepared by an accredited translator. Non-standard client identification procedure A non-standard client identification procedure should only be conducted where:

– a ‘standard client identification procedure’ was unable to be conducted;

– the Representative forms the view that a discrepancy arose from the information collected and verified during a ‘standard client identification procedure’; or

– Having conducted the ‘standard client identification procedure’, the Representative is not reasonably satisfied that the client is the individual he or she claims to be.

Acceptable ‘non-standard domestic documentation identification procedure’ An acceptable ‘non-standard domestic documentation identification procedure’ would be based on: An original or certified copy of –

– Australian birth certificate; or – Australian citizenship certificate; or

– Pension card issued by Centrelink;

AND

– An original notice issued to an individual, of a kind listed below, that contains the name of the individual and his or her residential address:

– issued by the Commonwealth or a State or Territory within the preceding 12 months that records the provision of financial benefits; or

– issued by the Australian Taxation Office within the preceding 12 months; or

– issued by a local government body or utilities provider within the preceding 3 months that records the provision of services to that address or to that person.

Acceptable ‘non-standard foreign documentation identification procedure’ In general, Representatives should be cautious about arranging for the provision of a product or service for a client that presents foreign based identification that is not a passport. However, in the event the client has not presented a passport, an example of an acceptable ‘non-standard foreign documentation identification procedure’ would be based on either an original or certified copy of a current:

– National Identity Card issued by a foreign government containing a photograph of the person in whose name the card is issued; and

– foreign driver’s licence that contains a photograph of the person in whose name it was issued.

Where any document relied on as part of the procedure is in a language that is not English, it must be accompanied by an English translation prepared by an accredited translator.

 

ATTACHMENT B – IDENTIFICATION OF COMPANIES

The client identification procedures for a company are as follows:

Domestic Public Listed Company or Subsidiary

A domestic company means a company that is registered under the Corporations Act 2001. If the company is a domestic public company and is included on an official list of a domestic stock exchange, or is a majority owned subsidiary of such a company, then:

1. Obtain the following:
   The full name of the company as registered by ASIC;
   The full address of the company’s registered office;
   The full address of the company’s principal place of business, if any;
   The ACN issued to the company;
   Whether the company is registered by ASIC as proprietary or public company;
   If the company is registered as a proprietary company, the name of each director of the company.
2. Verify that the company is domestic public company and is included on an official list of a domestic stock exchange, or is a majority owned subsidiary of such a company, from one or a combination of the following:
   A search of the relevant domestic stock exchange;
   A public document issued by the relevant company;
   A search of the relevant ASIC database;
   A search of the licence or other records of the relevant regulator. U

Domestic Regulated Proprietary Company

If the company is a domestic company that is licensed and subject to the regulatory oversight of a Commonwealth, State or Territory statutory regulator in relation to its activities as a company, then:

1. Obtain the following:
   The full name of the company as registered by ASIC;
   The full address of the company’s registered office;
   The full address of the company’s principal place of business, if any;
   The ACN issued to the company;
   Whether the company is registered by ASIC as proprietary or public company;
   If the company is registered as proprietary company, the name of the each director or the company.
2. Verify that the company is a domestic company that is licensed and subject to the regulatory oversight of a Commonwealth, State or Territory statutory regulator in relation to its activities as a company from one or a combination of the following:
   A public document issued by the relevant company;
   A search of the relevant ASIC database;
   A search of the licence or other records of the relevant regulator.

Other Domestic Companies

If the company is a domestic company that is registered by ASIC, then:

1. Obtain the following:
   The full name of the company as registered by ASIC;
   The full address of the company’s registered office;
   The full address of the company’s principal place of business, if any;
   The ACN issued to the company;
   Whether the company is registered by ASIC as proprietary or public company;
   If the company is registered as proprietary company, the name of the each director or the company;
   If the company is registered as proprietary company, the name and address of any individual who owns through one or more shareholdings more than 25% of the issued capital of the company.
2. Verify the company’s:
   full name as registered by ASIC;
   whether the company is registered by ASIC as a proprietary or public company;
   the ACN issued to the company.
3. Verify this information from one or a combination of the following:
   A public document issued by the relevant company;
   A search of the relevant ASIC database;
   An original or certified copy of the company’s certificate of registration.

A Registered Foreign Company

A registered foreign company means a foreign company that is registered under Division 2 of Part 5B.2 of the Corporations Act 2001. A relevant foreign registration body means any government body that was/is responsible for the formation, incorporation or registration of a foreign company in its country of formation, incorporation or registration. If the company is a registered foreign company, then:

1. Obtain the following:
   The full name of the company as registered by ASIC;
   The full address of the company’s registered office in Australia;
   The full address of the company’s principal place of business in Australia (if any) or the full name and address of the company’s local agent in Australia, if any;
   The ARBN issued to the company;
   The country in which the company was formed, incorporated or registered;
   Whether the company is registered by the relevant foreign registration body and if so whether it is registered as a proprietary or private company;
   If the company is registered as a private company by the relevant foreign registration body – the name of each director of the company.
   If the company is a proprietary or private company, the name and address of any individual who owns through one or more shareholdings more than 25% of the issued capital of the company.
2. Verify the company’s
   Full name as registered by ASIC;
   Whether the company is registered by the relevant foreign registration body and if so whether it is registered as a private or public company;
   The ARBN issued to the company.
3. Verify this information from one or a combination of the following:
   A public document issued by the relevant company;
   A search of the relevant ASIC database;
   a search of the records of the relevant foreign registration body.

An Unregistered Foreign Company

An unregistered foreign company means a foreign company that is not a registered foreign company. If the company is an unregistered foreign company obtain the following:

• The full name of the company;
• The country in which the company was formed, incorporated or registered;
• Whether the company is registered by the relevant foreign registration body and if so:
• Any identification number issued to the company by the relevant foreign registration boy upon the company’s formation, incorporation or registration;
• The full address of the company in its country of formation, incorporation or registration as registered by the relevant foreign registration body; and
• Whether it is registered as a private or public company or some other type of company by the relevant foreign registration body.
• If the company is registered as a private company by the relevant foreign registration body – the name of each director of the company;

 

ATTACHMENT C – IDENTIFICATION OF TRUST

Under the current AML/CTF Legislation, there are two procedures applicable for the client identification procedure with respect to the Trustees of a Trust, being Simplified Trustee Verification Procedure and Standard Documentation Client ID Procedure

For the Trust to qualify for the “Simplified Trustee Verification Procedure”, it must fall into one of the following categories:

1. The Trust is a Managed Investment Scheme registered by ASIC.
2. The Trust is a Managed Investment Scheme not registered by ASIC which only has wholesale clients and does not make small scale offerings caught by section 1012E of the Corporations Act 2001.
3. The Trust is a registered trust subject to regulatory oversight of a Australian Commonwealth regulator in relation to its activities as a Trust.
4. The Trust is a government superannuation fund established by legislation. If none of the above categories are applicable, the “Standard Documentation Client ID Procedure” will be required.

Simplified Trustee Verification procedure

This procedure is with respect to a trust that is:

• a managed investment scheme registered by ASIC;
• a managed investment scheme not registered by ASIC that:
  only has wholesale clients; and
  does not make small scale offerings to which section 1012E of the Corporations Act 2001 applies;
• registered and subject to the regulatory oversight of a Commonwealth statutory regulator in relation to its activities as a trust; or
• a government superannuation fund established by legislation. Conducting a ‘Simplified Trustee Verification Procedure’ involves collecting and verifying the information listed in the manner specified below.

1. Obtain the following:
   full name of the trust;
   full business name (if any) of the trustee in respect of the trust;
   the type of trust; d. the country in which the trust was established;
2. Verify
   the full name of the trust; and
   the Trust is one of the following:
   a managed investment scheme registered by ASIC;a managed investment scheme that is not registered by ASIC and that:
   only has wholesale clients; and
   does not make small scale offerings to which section 1012E of the Corporations Act 2001 applies;

• registered and subject to the regulatory oversight of a Commonwealth statutory regulator in relation to its activities as a trust; or
• a government superannuation fund established by legislation.

3. Verify this information from:
   search of the relevant ASIC database to verify that the Trust is a managed investment scheme registered by ASIC;
   Original or certified copy of the Certificate of Registration issued by ASIC, APRA or other Regulatory body;
   reviewing the Financial Services Guide (FSG) and Product Disclosure Statement (PDS) and other public offering documents of the client to verify the trust is a managed investment scheme not registered by ASIC, which only has wholesale clients and does not make small scale offerings caught by 1012E of the Corporations Act 2001;
   search other records of the relevant regulator to verify the trust is a registered trust subject to the regulatory oversight of an Australian Commonwealth regulator. This includes a search of the APRA database to verify if the client is a superannuation fund which is a registered superannuation entity (RSE) under the APRA licensing scheme;
   Making enquiries of independent sources to verify the legislation that the client claims establishes it as a government superannuation scheme.

Standard documentation client ID procedure with respect to Trustees

Conducting a ‘standard documentation ID procedure involves performing an identification procedure on one of the trustees (as per Schedules A & B) and in addition, collecting and verifying the information listed in the manner specified below.

1. Obtain
   full name of the trust;
   full business name (if any) of the trustee in respect of the trust;
   the type of trust; (e.g. Discretionary Trust, Protective Trust)
   the country in which the trust was established; e. nature of business activities / purpose of trust
2. Additional client information in relation to a Trust to be collected
   Full name and address of each trustee in respect of the trust;
   Either

• The full name and address of each beneficiary in respect of the trust; or
• If the terms of the trust identify the beneficiaries by reference to membership of a class – details of the class
• If any of the trustees is an Individual, the information required should be obtained from an Individual, as per Identification Procedure 1.
• If any of the trustees is a Company, the information required should be obtained from a Company, as per Identification Procedure 2.
• If the trustees comprise of Individuals and Companies, the information required should be obtained for either an individual or a company, as above.

3. Verify this information from:
   the full name of the trust; and

• If trustee is an Individual, verify information for an Individual, as per Identification Procedure 1.
• If trustee is a Company, verify information for a Company, as per Identification Procedure 2.
• If trustees comprise of individuals and companies, verify information about the Individual or Company, as per above.

4. Verify this information from either an original or certified copy/certified extract of:
   Trust Deed (Certified Copy / Extract is to include the details required for verification: Name of Trust, name of each trustee; full name of each beneficiary in respect of the trust or details of beneficiary membership class, authorised signatories and authority to act)

 

ATTACHMENT D – IDENTIFICATION OF PARTNERSHIP

The client identification procedures for a partnership are as follows:

1. Obtain the following:
   the full name of the partnership;
   the full business name (if any) of the partnership, as registered under any State or Territory business names legislation;
   the country in which the partnership was established;

AND

Either:

• the full name and residential address each partner in the partnership; or
• if the partnership is regulated by a professional association, the name of the professional association and the relevant membership details.

AND

For at least one of the partners (“verified partner”), the information required for collection detailed in Identification Procedure 1: INDIVIDUALS

2. Verify:

the full name of the partnership in accordance with
a standard client verification procedure for partnerships; or
if the sources referred to in that procedure are not reasonably available, a non-standard client verification procedure for partnerships

AND

the verified partner’s identity in accordance with Identification Procedure 1: INDIVIDUALS.

AND

if the partnership is regulated by a professional association, membership of that professional association from:

• an original current membership certificate (or equivalent), or
• membership details independently obtained from the relevant association; or f. such other sources as approved by Howard-Osmond Compliance as reliable and independent documents or reliable and independent electronic data relating to the partnership.

 

ATTACHMENT E – IDENTIFICATION OF ASSOCIATIONS (INCORPORATED AND UNINCORPORATED

Standard client ID procedure

A standard client identification procedure should be conducted in cases where:

1. the association exists: and
2. the names of any members of the governing committee (however it is described) of the association have been provided.

Care should be taken to differentiate between domestic and foreign clients as different standard client identification procedures apply.

Standard domestic documentation identification procedure Conducting a ‘standard domestic documentation identification procedure’ involves collecting and verifying the information listed in the manner specified below.

Incorporated Associations:

1. Obtain the following:
   Association’s full name;
   Full address of the association’s principal place of administration or registered office (if any); or the residential address of either the association’s public officer, president, secretary or treasurer;
   Any unique identifying number issued to the association upon its incorporation by the relevant registration body; and d. The full name of the chairman, secretary and treasurer or equivalent officer.
2. Verify the association’s full name and any unique identifying number from either an original or certified copy of the:
   Rules or constitution of the association; or
   A certified extract of the rules or constitution of the association; or
   The minutes of meeting of the association; or
   A certified copy or certified extract of the minutes of meeting of the association; or
   From information provided by ASIC or by the State, Territory or overseas body responsible for its incorporation; or
   From reliable & independent documentation or electronic data relating to the association.

Unincorporated Associations:

3. In addition to steps 1 and 2 above, the following information must be collected and verified:
   The full address of the association’s principal place of business; and
   The standard client identification procedure for individuals in Identification Procedure 1, must be verified about “the member” of the association (wording from the Rules)
4. Person with authority to act on behalf of association (incorporated & unincorporated) (agent of client); in relation to the designated service:
   Obtain full name of each individual who purports to act for or on behalf of the client; and
   Evidence of the client’s authorisation of any individual referred to.
5. Additional Information to be verified about the client (risk-based):
   Full name and residential address of either the chairman, secretary, treasurer or equivalent officer (e.g. obtain primary identification document);
   Full address of the association’s principal place of administration or registered office (if any) (e.g. obtain utility bill) U

Standard foreign documentation identification procedure

3. In addition to steps 1 and 2 above, the following steps must be taken:
   Verify this information from an original or certified copy of a foreign government issued or similar document.

Where any document relied on as part of the procedure is in a language that is not English, it must be accompanied by an English translation prepared by an accredited translator. Non-standard identification procedure In the event that the minimum requirements are not available, Representatives must contact Howard-Osmond Compliance.

 

ATTACHMENT F – IDENTIFICATION OF REGISTERED COOPERATIVES

Standard client ID procedure

A standard client identification procedure should be conducted in cases where:

1. the co-operative exists; and
2. the names of the chairman, secretary or equivalent officer have been provided.

Care should be taken to differentiate between domestic and foreign clients as different standard client identification procedures apply.

Standard domestic documentation identification procedure

Conducting a ‘standard domestic documentation identification procedure’ involves collecting and verifying the information listed in the manner specified below.

Registered Co-operatives:

1. Obtain the following:
   Co-operative’s full name;
   Full address of the co-operative’s registered office or principal place of operations (if any); or the residential address of either the co-operative’s secretary, president or treasurer;
   Any unique identifying number issued to the co-operative upon its registration by the relevant registration body; and
   The full name of the chairman, secretary and treasurer or equivalent officer.
2. Verify the co-operative’s full name and any unique identifying number from either an original or certified copy of:
   Any register maintained by the co-operative; or
   A certified extract of any register maintained by the co-operative; or
   From information provided by ASIC or by the State, Territory or overseas body responsible for its registration; or
   From reliable & independent documentation or electronic data relating to the co-operative
3. Person with authority to act on behalf of co-operative (agent of client); in relation to the designated service:
   Obtain full name of each individual who purports to act for or on behalf of the client; and
   Evidence of the client’s authorisation of any individual referred to.
4. Additional information to be verified about the client (risk-based):
   The full name and residential address of either the co-operative’s president, secretary or treasurer (e.g. obtain primary identification document); and
   Full address of the co-operative’s registered office or principal place of operations (if any) (e.g. obtain utility bill)

Non-standard identification procedure In the event that the minimum requirements are not available, Representatives must contact Howard-Osmond Compliance.

 

ATTACHMENT G – IDENTIFICATION OF GOVERNMENT BODIES

Standard client ID procedure

A standard client identification procedure should be conducted in all cases where feasible. Care should be taken to differentiate between domestic and foreign clients as different standard client identification procedures apply.

Standard domestic documentation identification procedure

Conducting a ‘standard domestic documentation identification procedure’ involves collecting and verifying the information listed in the manner specified below.

1. Obtain the following:
   Full name of government body;
   The full address of the government body’s principal place of operations;
   Whether the government body is an entity or emanation or is established under legislation of the Commonwealth; and
   Whether the government body is an entity or emanation established under legislation of a State, Territory or foreign country and the name of that State, Territory or country.
2. Verify the information in 1 above by using:
   Reliable and independent documentation (e.g. legislation, founding document, constitution);
   Reliable and independent electronic data (e.g. website, government registers); or
   A combination of both.
3. Person with authority to act on behalf of government body (agent of client);in relation to the designated service :
   Obtain full name of each individual who purports to act for or on behalf of the client; and
   Evidence of the client’s authorisation of any individual referred to.
4. Additional information to be verified about the client (risk-based):
   Information about the ownership or control of a government body that is an entity or emanation or established under legislation of a foreign country; and
   The name of any legislation under which the government body was established

Non-standard identification procedure In the event that the minimum requirements are not available, Representatives must contact Howard-Osmond Compliance.

 

ATTACHMENT H – PERSONS WHO CAN CERTFY A COPY OF AN ORGINAL DOCUMENT

• a person who is enrolled on the roll of the Supreme Court of a State or Territory, or the High Court of Australia, as a legal practitioner (however described);
• an officer with, or authorised representative of, a holder of an Australian financial services licence, having 2 or more years of continuous service with one or more licensees.
• Any of the following:
  • Chiropractor
  • Dentist
  • Legal practitioner
  • Medical practitioner
  • Nurse
  • Optometrist
  • Patent attorney
  • Pharmacist
  • Physiotherapist
  • Psychologist
  • Trade marks attorney
  • Veterinary surgeon
  • Agent of the Australian Postal Corporation who is in charge of an office supplying postal services to the public
  • Australian Consular Officer or Australian Diplomatic Officer (within the meaning of the Consular Fees Act 1955)
  • Bailiff
  • Bank officer with 2 or more continuous years of service
  • Building society officer with 2 or more years of continuous service
  • Chief executive officer of a Commonwealth court
  • Clerk of a court
  • Commissioner for Affidavits
  • Commissioner for Declarations
  • Credit union officer with 5 or more years of continuous service
  • Employee of the Australian Trade Commission who is:

(a) in a country or place outside Australia; and

(b) authorised under paragraph 3 (d) of the Consular Fees Act 1955;

and

(c) exercising his or her function in that place

• Employee of the Commonwealth who is:

(a) in a country or place outside Australia; and

(b) authorised under paragraph 3 (c) of the Consular Fees Act 1955;

and

(c) exercising his or her function in that place

• Fellow of the National Tax Accountants’ Association
• Finance company officer with 2 or more years of continuous service
• Holder of a statutory office not specified in another item in this Part
• Judge of a court
• Justice of the Peace
• Magistrate
• Marriage celebrant registered under Subdivision C of Division 1 of Part IV of the Marriage Act 1961
• Master of a court
• Member of Chartered Secretaries Australia
• Member of Engineers Australia, other than at the grade of student
• Member of the Association of Taxation and Management Accountants
• Member of the Australian Defence Force who is:

(a) an officer; or

(b) a non-commissioned officer within the meaning of the Defence Force Discipline Act 1982 with2 or more years of continuous service; or

(c) a warrant officer within the meaning of that Act

• Member of the Institute of Chartered Accountants in Australia, the Australian Society of Certified Practising Accountants or the National Institute of Accountants
• Member of:

(a) the Parliament of the Commonwealth; or

(b) the Parliament of a State; or

(c) a Territory legislature; or

(d) a local government authority of a State or Territory

• Minister of religion registered under Subdivision A of Division 1 of Part IV of the Marriage Act 1961
• Notary public
• Permanent employee of the Australian Postal Corporation with 2 or more years of continuous service who is employed in an office supplying postal services to the public
• Permanent employee of:

(a) the Commonwealth or a Commonwealth authority; or

(b) a State or Territory or a State or Territory authority; or

(c) a local government authority;

with 2 or more years of continuous service who is not specified in another item in this Part

• Person before whom a statutory declaration may be made under the law of the State or Territory in which the declaration is made
• Police officer
• Registrar, or Deputy Registrar, of a court
• Senior Executive Service employee of:

(a) the Commonwealth or a Commonwealth authority; or

(b) a State or Territory or a State or Territory authority

• Sheriff
• Sheriff’s officer
• Teacher employed on a full-time basis at a school or tertiary education institution
• Member of the Australasian Institute of Mining and Metallurgy