Pre‑commencement customers
36 Pre‑commencement customers
A customer of a reporting entity is a pre‑commencement customer if:
the reporting entity commenced before 12 December 2007 to provide a designated service covered by an item of table 1, 2 or 3 in section 6 of this Act to the customer; or
the business relationship between the reporting entity and the customer involved the provision of only any of the following designated services in section 6 of this Act as at the start of 1 July 2026:
designated services covered by item 2 of table 2 in section 6;
designated services covered by table 5 in section 6;
designated services covered by table 6 in section 6.
A pre‑commencement customer of a reporting entity ceases to be a pre‑commencement customer when the reporting entity complies with subsection 28(1) in relation to the customer.
Subsection 28(1) and paragraph 30(2)(b) do not apply in relation to a customer that is a pre‑commencement customer.
However, subsection 28(1) applies in relation to a customer that is a pre‑commencement customer if:
a suspicious matter reporting obligation arises for the reporting entity in relation to the customer; or
there is a significant change in the nature and purpose of the business relationship with the customer which results in the ML/TF risk of the customer being medium or high.
For suspicious matter reporting obligation, see section 41.
9 Section 37 (heading)
Omit “Applicable customer identification procedures”, substitute “Collection and verification of KYC information”.
10 Subsection 37(1)
Omit “the carrying out by a reporting entity of an applicable customer identification procedure or an identity verification procedure”, substitute “a reporting entity complying with paragraphs 28(3)(c) and (d)”.
11 Subsection 37(1) (note)
Omit “carrying out the applicable customer identification procedures”, substitute “complying with paragraphs 28(3)(c) and (d)”.
12 Subsection 37(2)
Omit “carrying out applicable customer identification procedures or identity verification procedures”, substitute “complying with paragraphs 28(3)(c) and (d)”.
13 Subsection 37(3)
Omit “carrying out the applicable customer identification procedure or an identity verification procedure”, substitute “complying with paragraphs 28(3)(c) and (d)”.
14 Section 37A (heading)
Omit “applicable customer identification procedures”, substitute “collection and verification of KYC information”.
15 Paragraph 37A(1)(a)
Omit “applicable customer identification procedures”, substitute “the collection and verification of KYC information relating to a customer in accordance with paragraphs 28(3)(c) and (d)”.
16 Subsection 37A(2)
Omit “carried out the applicable customer identification procedure”, substitute “complied with paragraphs 28(3)(c) and (d)”.
17 Section 38 (heading)
Omit “applicable customer identification procedures”, substitute “collection and verification of KYC information”.
18 Paragraph 38(b)
Omit “carried out an applicable customer identification procedure”, substitute “complied with paragraph 28(3)(c) or (d)”.
19 Section 38
Omit “carried out the applicable customer identification procedure”, substitute “complied with paragraph 28(3)(c) or (d)”.
20 Subsection 39(6)
Omit “Division 6”, substitute “Divisions 3 and 4”.
21 Section 104 (paragraph (a))
Omit “applicable customer identification procedures it carries out or that it is taken to have carried out”, substitute “customer due diligence”.
22 Section 104 (paragraph (b))
Omit “applicable customer identification procedures”, substitute “the collection and verification of KYC information about a customer”.
23 Division 3 of Part 10 (heading)
Omit “the carrying out of identification procedures”, substitute “customer due diligence and other procedures”.
24 Sections 111 to 113
Repeal the sections, substitute:
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