Transaction Accounts
High exposure products requiring robust monitoring.
Banking
AML in Banking. Compliance for Financial Institutions
AML compliance for banks and financial institutions. Learn about AUSTRAC's requirements for the banking sector.
Banking sector AML requirements
Banks and financial institutions have significant AML/CTF obligations. According to AUSTRAC, the movement of funds internationally constitutes a significant vulnerability for financial service providers, as it is linked to money laundering, terrorism financing, tax evasion, corruption, scams and fraud.
SMRs submitted by banks provide valuable intelligence to AUSTRAC and law enforcement partners.
Key banking AML areas
International Transfers
Movement of funds offshore poses significant ML/TF risk.
Cash Transactions
Large cash deposits and withdrawals require TTR reporting.
SMR Reporting
Banks submit crucial suspicious matter reports to AUSTRAC.
Frequently asked questions
What AML obligations do banks have?
Banks must have an AML/CTF program, conduct customer due diligence, monitor transactions, and submit threshold and suspicious matter reports to AUSTRAC.
Why is banking high risk for money laundering?
According to AUSTRAC, banks facilitate the movement of funds including internationally, which constitutes a significant vulnerability linked to money laundering, terrorism financing, and fraud.
What are the major enforcement actions?
AUSTRAC has taken significant enforcement actions against major banks including Commonwealth Bank ($700M), Westpac ($1.3B), and Crown ($450M).
Related resources
CDD for financial services
ARCaml provides customer due diligence for financial service providers.