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