Australian AML/CTF · Explainer

What should an AML decision record explain?

Connect the facts, review steps, outcome and reason so a later reader can follow the decision.

General information only, not legal, compliance, or other professional advice. Does not confirm compliance.

Start with: When does an AML program become a working process?

Explain the path to the outcome

A decision record should connect the available facts with the action taken. AUSTRAC’s guidance on unusual activity asks for the alert details, review steps, response and reasons. A label such as cleared or escalated may identify the outcome but not explain it. Record what the reviewer considered and what remained unresolved. This makes the decision easier to assess later. It also helps distinguish a considered decision to take no further action from a case that was closed without adequate review.

Make the decision explainableFollow the process from top to bottom. Issue: What prompted the review? Evidence: What information was considered? Assessment: How did the reviewer interpret it? Action: What happened, and why?Issue Evidence Assessment Action
  1. Issue

    What prompted the review?

  2. Evidence

    What information was considered?

  3. Assessment

    How did the reviewer interpret it?

  4. Action

    What happened, and why?

Make the decision explainable

Suggested record structure; facts, judgements and later updates should remain distinguishable.

Follow the process from top to bottom.

Separate facts and judgements

A practical note can use short headings for the issue, evidence, assessment and action. Identify where each important fact came from. Keep a customer explanation separate from an independently checked fact. Where the reviewer makes a judgement, state the reasoning and relevant limit. Avoid language that turns uncertainty into an allegation. The purpose is a clear record of the business’s assessment at the time. Later information should be added with its own date rather than silently changing the earlier account.

Example: activity with an explanation

Imagine activity appears inconsistent with the information on file. The reviewer obtains further context and decides on a response. A useful record states what prompted the review, what additional material was considered and why the response followed. If some questions remain, record the next step and owner. This example does not determine whether a suspicious matter report is required. It shows how to preserve the reasoning so that the reporting question and any later review can use an accurate account of the work.

Keep decisions usable and controlled

Use a consistent record location and restrict access according to the sensitivity of the material. Link supporting evidence rather than copying large amounts of unrelated information into every note. Make the next action, responsible person and completion evidence clear. If another person reviews the decision, preserve both the original and the review outcome. Check applicable reporting and disclosure rules before sharing records. Good documentation supports examination of a decision; it does not make the decision correct merely because all fields on a form are complete.

Avoid retrospective certainty

A later reviewer may know facts unavailable when the original decision was made. Keep those time boundaries clear. Assess the earlier reasoning using the information then available, and record how new evidence changes the next action. This makes the history useful without presenting later knowledge as something staff already knew.

Sources and scope

Sources checked on 2026-09-06. This page is not continuously updated. Check the linked legislation and AUSTRAC guidance for current requirements.

This page does not cover: Reporting thresholds and deadlines; Legal restrictions on disclosure.

Common AML/CTF terms