The Australian Government has consulted widely with industries caught by the AML/CTF Act. One of the outcomes of this consultation, through the joint Government/Industry Working Group process, is the ML/TF Risk Principles Framework. The Framework identifies four key elements and five process steps in managing ML/TF risk. The four elements are:

• policy and strategy
• process, procedures and tools
• people, committees and techniques to support risk management
• culture.

Click on the image below to go to the full size version or the link for the pdf version:

AML/CTF risk principles framework (pdf 272kb)

The five process steps are to:

• identify
• analyse
• treat
• monitor
• report.

Section 4 of the AUSTRAC guidance note - Risk management and AML/CTF programs describes the components of these five process steps in greater detail.

The ML/TF Risk Principles Framework will be referred to throughout this course. The course content and the various tools and resources have been written to conform with the ML/TF Risk Principles Framework.