Glossary

The legislative instrument made under the AML/CTF Act that supplies detailed requirements for areas including AML/CTF programs, customer due diligence and reporting. The current in-force Federal Register compilation should be checked because the Rules may be amended; this Layer 1 summary does not replace the legal text.

The Australian Transaction Reports and Analysis Centre, which is Australia's AML/CTF regulator and financial intelligence unit. AUSTRAC regulates reporting entities and uses financial reports and other information to produce financial intelligence.

An individual who directly or indirectly ultimately owns 25% or more of a customer, or otherwise controls the customer. A customer may have more than one beneficial owner or, in some cases, none; the identification steps and exceptions depend on the customer type and the Act and Rules.

Risk-based initial and ongoing measures through which a reporting entity understands a customer, establishes required identity and related matters on reasonable grounds, verifies KYC information as appropriate to ML/TF risk, and monitors the relationship. The measures that apply depend on the Act, Rules and the customer's circumstances.

Additional, targeted customer due diligence measures used when enhanced CDD is required. Measures must be proportionate to the identified ML/TF risk and may include obtaining or verifying more information, establishing source of funds or wealth, senior manager approval, and more intensive monitoring; the required response depends on the trigger and circumstances.

An individual entrusted with significant public responsibilities and power, including people with specified family or close-associate connections. AUSTRAC describes three types: foreign, domestic and international organisation PEPs. PEP status is not evidence of unlawful activity; the CDD obligations and measures depend on the PEP type and customer risk.

Common shorthand for the extension of Australia's AML/CTF regime to specified designated services often provided by legal professionals, accountants, conveyancers, real estate professionals and dealers in precious metals, stones and products from 1 July 2026. Whether a business is regulated depends on the designated services it provides and the Act's geographical link, not its profession alone.