AUSTRAC·Reviewed June 2026·← Compliance hub

AML/CTF
Anti-Money Laundering & Counter-Terrorism Financing.

AUSTRAC's regime for customer due diligence, ongoing monitoring, suspicious matter reporting, and international transfer reporting. Tranche 2 reforms extend the regime to lawyers, accountants, and other gatekeepers from 2026.

The stakes
AUSTRAC penalties are among the largest regulatory fines in Australia, Westpac and CommBank have each faced settlements exceeding $700M. AUSTRAC enforces with an audit-trail-and-intent-to-prosecute posture: half-baked controls and missing evidence are not negotiable defects.

What AML/CTF requires.
How BackPro handles each obligation.

Part B

AML/CTF program & risk assessment

The requirement

Maintain an AML/CTF program tailored to the firm's specific ML/TF risks. The program must be reviewed and updated regularly, and approved at senior management or board level.

Pt II Div 4

Customer due diligence (CDD)

The requirement

Verify customer identity and the beneficial ownership of legal entities before establishing a business relationship. KYC documentation must be retained for seven years.

Pt II Div 4 + Ch 4 Rules

Enhanced CDD (ECDD)

The requirement

Apply enhanced verification to customers presenting higher ML/TF risk: politically exposed persons, complex ownership structures, jurisdictions of concern, high-value cash relationships.

Pt II Div 6

Ongoing customer due diligence

The requirement

Monitor customer activity for inconsistency with the customer profile. Update customer information as circumstances change. Re-assess customer risk on a cadence proportionate to risk.

s 41

Suspicious matter reporting (SMR)

The requirement

Report suspicious matters to AUSTRAC within 24 hours (terrorism financing) or 3 business days (general). Maintain the supporting analysis that explains the basis of the suspicion.

s 45

International funds transfer instructions (IFTI)

The requirement

Report international funds transfers to AUSTRAC on the prescribed cadence. Maintain threshold transaction reports for cash transactions of $10,000 or more.

What BackPro produces for AML/CTF.

The artifacts your auditor expects. Hashed, signed, timestamped, exportable. Generated continuously while you work, not assembled in the week before the audit.

Artifact
AML/CTF program (board-approved)

Living program document with control mapping, version history, and approval trail.

Artifact
Customer KYC files

CDD evidence per customer, with beneficial ownership documentation and seven-year retention.

Artifact
ECDD records (high-risk customers)

PEP/sanctions screening, source-of-funds narrative, and senior-officer approval per high-risk relationship.

Artifact
Transaction monitoring report

Pattern-based alerts with reviewer disposition and rationale.

Artifact
Suspicious matter report (SMR)

AUSTRAC-formatted SMR with underlying analysis preserved.

Artifact
IFTI reporting pack

Periodic IFTI submissions plus threshold transaction reports in AUSTRAC's prescribed schema.

Tranche 2 · By profession

How AML/CTF lands in your profession.

Tranche 2 captures six new categories of reporting entity from 1 July 2026. We have written a dedicated read for each, what changes, the real-world scenarios, the obligations in operational order, and how to get ready.

Common questions

AML/CTF, in plain words.

See AML/CTF mapped to your own controls.

Forty‑five minutes with our team. We take your existing control register, map it against AML/CTF obligations, and show you which gaps BackPro closes automatically. The mapping is yours to keep whether you proceed with us or not.