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AML Acronyms
A
ABN (Australian Business Number) – A unique 11-digit identifier for businesses registered in Australia.
Account Monitoring – Ongoing surveillance of customer accounts to detect suspicious transactions.
ACIC (Australian Criminal Intelligence Commission) – A national agency supporting law enforcement in financial crime investigations.
AML (Anti-Money Laundering) – Laws, regulations and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.
AML/CTF Act (Anti-Money Laundering and Counter-Terrorism Financing Act 2006) – The primary legislation in Australia governing AML/CTF compliance.
AML/CTF Compliance Program – A mandatory framework outlining policies, procedures and controls to mitigate ML/TF risks.
APRA (Australian Prudential Regulation Authority) – Regulates financial institutions to ensure compliance with AML/CTF obligations.
AUSTRAC (Australian Transaction Reports and Analysis Centre) – Australia’s AML/CTF regulator and financial intelligence unit.
Automated Monitoring – Technology-driven transaction monitoring to detect unusual or suspicious activity.
B
Beneficial Owner – The natural person who ultimately owns or controls a customer entity.
Blacklist – A list of individuals, entities, or jurisdictions associated with financial crime risks.
Bribery and Corruption – The act of offering, giving or receiving something of value to influence decisions unlawfully.
C
CDD (Customer Due Diligence) – The process of verifying customer identity and assessing ML/TF risk.
Compliance Officer – A designated person responsible for ensuring AML/CTF compliance within an organisation.
Customer Identification Procedure (CIP) – The process of verifying a customer’s identity before establishing a business relationship.
D
Designated Business Group (DBG) – A group of related entities that can share AML/CTF compliance obligations.
Designated Services – Financial and non-financial services subject to AML/CTF laws in Australia.
DNFBPs (Designated Non-Financial Businesses and Professions) – Entities such as lawyers, accountants, real estate agents, and high-value dealers subject to AML/CTF obligations under Tranche 2 reforms.
E
ECDD (Enhanced Customer Due Diligence) – Additional due diligence measures required for high-risk customers.
Electronic Verification (EV) – The use of electronic databases to verify customer identity.
Enforcement Action – Regulatory actions taken by AUSTRAC for non-compliance with AML/CTF laws.
F
False Positives – AML/CTF monitoring alerts flagged as suspicious but later determined to be legitimate.
FATF (Financial Action Task Force) – An intergovernmental body setting global AML/CTF standards.
FIU (Financial Intelligence Unit) – A national agency responsible for collecting and analysing financial crime data.
K
KYC (Know Your Customer) – The process of verifying a customer’s identity and assessing risk before conducting transactions.
KYB (Know Your Business) – The process of verifying business entities and their beneficial owners.
P
PEP (Politically Exposed Person) – An individual holding a prominent public position with higher ML/TF risks.
Privacy Act – Australian law governing the handling of personal information, including AML data.
S
SMR (Suspicious Matter Report) – A report submitted to AUSTRAC when suspicious activity is detected.
Source of Funds – The origin of a customer’s financial resources.
Source of Wealth – The means by which a customer has accumulated their total wealth.
T
TF (Terrorism Financing) – The provision of funds to support terrorist activities.
Tranche 2 Reforms – The expansion of AML/CTF laws to cover non-financial businesses and professions.
Transaction Monitoring – The process of detecting suspicious patterns in financial transactions.
TTR (Threshold Transaction Report) – A report submitted to AUSTRAC for cash transactions of AUD 10,000 or more.