Financial institutions and other anti-money laundering reporting entities will have access to third party providers of customer due diligence services, under amendments to the anti-money laundering and counter-terrorism financing law introduce into parliament last week.The amendment will allow reporting entities to enter into customer due diligence arrangements with other regulated businesses in Australia and overseas.Under current arrangements, if a person has bank accounts with multiple lenders it is expected that each financial institution will have undertaken customer due diligence procedures on that person. This would no longer be necessary.The reform would give reporting entities a "safe harbour" from liability for third party customer due diligence breaches.There are a number of other changes in the bill. It prohibits reporting entities from providing a designated service if customer identification procedures cannot be performed.It strengthens protections around correspondent banking by prohibiting financial institutions from entering into a correspondent banking relationship with another financial institutions that permits its accounts to be used by a shell bank.And it requires banks to conduct due diligence before entering a correspondent banking relationship.The bill also provides for a simplified and more flexible framework for the use and disclosure of financial intelligence to better align with existing operational practice.It expands exceptions to the prohibition on tipping-off to permit reporting entities to share suspicious matter reports and related information with external auditors.The bill expands the rule-making powers of the Austrac chief executive.