aml

							Anti Money Laundering

 Using Orion to activate the
 Australian AML legislation
The AML/CTF act refers to definitions in other pieces
of legislation, including the Australian Constitution

It is intended that only enough of these other acts be
read to flesh out the definitions
                           Defining Terms
5 Definitions
In this Act:
account includes:
 (a) a loan account (for example, a credit card account); and
 (b) an account of money held in the form of units in:
               (i) a cash management trust; or
              (ii) a trust of a kind prescribed by the AML/CTF Rules.
account provider: if an account is with a person, the person is the account provider for the
account.
acquiring: in determining whether something is a designated service, acquiring includes
anything that, under the regulations, is taken to be acquiring for the purposes of this definition.
ADI (short for authorised deposit-taking institution) means:
 (a) a body corporate that is an ADI for the purposes of the Banking Act 1959; or
 (b) the Reserve Bank of Australia; or
 (c) a person who carries on State banking within the meaning of paragraph 51(xiii) of the
Constitution.
AFP member (short for Australian Federal Police member) means a member or special member
of the Australian Federal Police.
allowing a transaction: in determining whether a person has allowed a transaction, it is
immaterial whether the person was obliged to allow the transaction.
AML/CTF Rules (short for Anti-Money Laundering/Counter-Terrorism Financing Rules) means
the rules made under section 191.

    Note the forward reference to AML/CTF, as the definitions are in alphabetical
    order, the use of the same term to define a term - “allow a transaction”
                 I before E
We need to have already required the properties of an
object so we can group things appropriately when
defined terms are used together. Some defined terms
are used before they are defined, so the machine
needs to read the definitions in the order they are
required, rather than the order in the document.

Sometimes it will encounter circular definitions - A is
defined in terms of B and C, and C is defined in terms
of A (and sometimes it is acceptable).

Sometimes, there will be no definition. When reading
existing legislation, we will end up with a set of
explanatory notes, that any reader needs, for errors or
omissions.
              Complex Definition
(1) For the purposes of this Act, if:
(a) a person (the originating entity) instructs a person (the originating institution)
to transfer money controlled by the originating entity to a third person (the ultimate
recipient) on the basis that the transferred money will be made available to the
ultimate recipient by:
 (i) being credited to an account held by the ultimate recipient with a fourth person
(the destination institution); or
 (ii) being paid to the ultimate recipient by a fourth person (the destination
institution); or
(b) a person (the ultimate recipient) instructs a person (the originating institution)
to transfer money controlled by a third person (the originating entity) to the
ultimate recipient on the basis that the transferred money will be made available to
the ultimate recipient by:
 (i) being credited to an account held by the ultimate recipient with a fourth person
(the destination institution); or
(ii) being paid to the ultimate recipient by a fourth person (the destination
institution);
the instruction is a multiple-institution person-to-person funds transfer
instruction.


         This is of form If A and B, C is D
                  Complex Definition




     Multiple
     threads
     through
     object
     group

Object being
defined



       The definition becomes complex and has multiple threads,
       but is exactly what the legislation says (and implies)
                                               Sample Text
74 Anti-money laundering and counter-terrorism financing programs
 (1) An anti-money laundering and counter-terrorism financing program is a program that:
 (a) is designed to ensure that appropriate action is taken to:
                 (i) identify; and
                 (ii) materially mitigate;
the risk that the provision by the reporting entity of designated services at or through a permanent establishment of the entity in
Australia might (whether inadvertently or otherwise) involve or facilitate a transaction that is connected with the commission of:
                 (iii) a money laundering offence; or
                 (iv) a financing of terrorism offence; and
(b) requires the reporting entity to monitor the provision by the reporting entity of designated services at or through a permanent
establishment of the entity in Australia, with a view to:
                 (i) identifying; and
                 (ii) materially mitigating;
the risk that the provision by the reporting entity of a designated service at or through a permanent establishment of the entity in
Australia might (whether inadvertently or otherwise) involve or facilitate a transaction that is connected with the commission of:
                 (iii) a money laundering offence; or
                 (iv) a financing of terrorism offence; and
(c) requires the reporting entity to take such action as is specified in the AML/CTF Rules in relation to the provision by the
reporting entity of designated services to customers who are politically exposed persons; and
(d) requires the reporting entity to take such action as is specified in the AML/CTF Rules in relation to the provision by the
reporting entity of designated services at or through a permanent establishment of the entity in a foreign country;and
(e) includes a system directed towards ensuring that the reporting entity complies with this Act; and
(f) complies with such requirements as are:
                 (i) specified in the AML/CTF Rules; and
                 (ii) declared by the AML/CTF Rules to be requirements relating to ongoing customer due diligence; and
(g) complies with such other requirements (if any) as are specified in the AML/CTF Rules.


        The terms in blue are defined terms, making it much easier to handle
        the text. The text is defining another term (in red), already found in
        formal definitions and pointing to this clause
                 AML/CTF Rules


Much of the text is prescriptive, so it is not easily turned
into simple rules.

Making the text directly generate the structure used for
analysis and querying ensures that meaning is not lost
or corrupted in the process.