Clause 3

by inserting, immediately after subsection (1), the following subsections:“(1A) In particular, the directions and regulations under subsection (1) may provide for —

customer due diligence measures to be conducted by financial institutions to prevent money laundering and the financing of terrorism; and

the records to be kept for that purpose.(1B) A financial institution must —

conduct such customer due diligence measures as may be specified by the directions referred to in subsection (1A) that are issued to it, or as may be prescribed by the regulations referred to in that subsection that are applicable to it; and

maintain records on transactions and information obtained through the conduct of those measures for such period and in such manner as may be specified by the directions referred to in subsection (1A) that are issued to it, or as may be prescribed by the regulations referred to in that subsection that are applicable to it.”;

by deleting subsection (2) and substituting the following subsection:“(2) A financial institution which —

fails to comply with a direction issued to it under subsection (1);

contravenes any regulation made under subsection (1); or

contravenes subsection (1B),shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1 million and, in the case of a continuing offence, to a further fine of $100,000 for every day or part of a day during which the offence continues after conviction.”; and

by deleting the section heading and substituting the following section heading:“Requirements for prevention of money laundering and terrorism financing”.