AML, CTF and CFT
AML means anti-money laundering. CTF means counter-terrorism financing. Australian sources use AML/CTF.
CFT means combating the financing of terrorism. International sources often use AML/CFT. A different abbreviation does not change the applicable Australian service conditions.
Sources: FATF: AML/CFT terminology; AUSTRAC: Money laundering and terrorism financing.
CDD, ECDD, KYC and KYB
CDD means customer due diligence. It covers initial checks and ongoing work. An identity check alone does not complete CDD.
ECDD means enhanced customer due diligence, also written as enhanced CDD. It involves additional measures when the applicable conditions require them.
KYC means know your customer. KYC information supports customer checks and risk decisions. KYB means know your business, an industry label for checks on a business and the people behind it. KYB is not a separate Australian legal duty.
Sources: AUSTRAC: Overview of customer due diligence; AUSTRAC: Enhanced customer due diligence; Holley Nethercote, hosted by the Institute of Public Accountants: Industry terminology.
PEP and SIP
PEP means politically exposed person. The term concerns specified public responsibilities and connections. Domestic, foreign and international organisation PEP categories have different legal treatment.
SIP means special interest person in some screening products. It is a supplier label whose scope depends on the product. It is not a common legal test and does not replace PEP, sanctions or identity checks.
Sources: AUSTRAC: PEP categories; third-party sources; Federal Register of Legislation: Section 5 definition of politically exposed person.
SMR, TTR and IFTI
SMR means suspicious matter report. Its reporting test concerns reasonable grounds for suspicion under the applicable conditions. It is different from a report based only on transaction size.
TTR means threshold transaction report. In the relevant designated service, it concerns a transfer of at least A$10,000 in physical currency, or its foreign-currency equivalent. An electronic payment is not cash for this test.
IFTI means international funds transfer instruction. IFTI-E describes the electronic financial-institution form. IFTI-DRA describes the designated remittance arrangement form. Reporting responsibility depends on the role and applicable rules, including the transition to IVTS reporting.
Sources: AUSTRAC: When to submit; AUSTRAC: When to submit; AUSTRAC: IFTI-E; IFTI-DRA; transition to IVTS reporting.
Why IVTS needs context
In Australian law, IVTS means international value transfer service. It concerns the specified international service. It does not mean that the transfer system is informal.
FinCEN also uses IVTS for informal value transfer systems. That US terminology concerns networks that arrange payment of equivalent value elsewhere. Expand the term and check the jurisdiction before applying it.
Sources: Federal Register of Legislation: Section 45; Financial Crimes Enforcement Network: Definition of informal value transfer systems.
- Expand the term
Write the term in full. CDD, ECDD and KYC describe related but different work.
- Check the jurisdiction
IVTS means international value transfer service in Australian law. FinCEN also uses it for informal value transfer systems.
- Find the relevant task
Use the linked topic guide to check the applicable customer, screening or reporting conditions.
Read an abbreviation in context
An abbreviation alone does not identify the applicable duty. Expand it, check the jurisdiction and read the relevant topic guide.
Follow the process from top to bottom.