Legal Profession (Prevention of Money Laundering, Financing of Terrorism and Proliferation Financing) Rules 2015 · As enacted · Part 2 · Customer Due Diligence Measures
5. Client suspected of money laundering, financing of terrorism or proliferation financing
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Where a legal practitioner or law practice has reasonable grounds to suspect that a client may be engaged in money laundering, the financing of terrorism or proliferation financing, the legal practitioner or law practice —
must disclose the suspicion, or the information on which the suspicion is based, by filing a suspicious transaction report with either or both of the following, as the case may be:
a Suspicious Transaction Reporting Officer;
a police officer or Commercial Affairs Officer; and
must consider if it is appropriate to —
continue a business relationship with the client; or
establish a new business relationship with, or undertake a new matter for, the client.
Where the legal practitioner or law practice continues a business relationship with, establishes a new business relationship with, or undertakes a new matter for, the client mentioned in paragraph (1), the legal practitioner or law practice must —
substantiate the reasons for continuing or establishing the business relationship with, or undertaking the matter for, the client, and document those reasons; and
subject the business relationship or matter to commensurate risk mitigation measures, including enhanced ongoing monitoring.
Subregulation 1
Where a legal practitioner or law practice has reasonable grounds to suspect that a client may be engaged in money laundering, the financing of terrorism or proliferation financing, the legal practitioner or law practice —
must disclose the suspicion, or the information on which the suspicion is based, by filing a suspicious transaction report with either or both of the following, as the case may be:
a Suspicious Transaction Reporting Officer;
a police officer or Commercial Affairs Officer; and
must consider if it is appropriate to —
continue a business relationship with the client; or
establish a new business relationship with, or undertake a new matter for, the client.
Subregulation 2
Where the legal practitioner or law practice continues a business relationship with, establishes a new business relationship with, or undertakes a new matter for, the client mentioned in paragraph (1), the legal practitioner or law practice must —
substantiate the reasons for continuing or establishing the business relationship with, or undertaking the matter for, the client, and document those reasons; and
subject the business relationship or matter to commensurate risk mitigation measures, including enhanced ongoing monitoring.