Preview questions in the AUSTRAC 2021 compliance report

If No (you will only be presented with the Your feedback and Review and submit sections of the form):

Are you sure?

You have been enrolled as providing designated services during this period.

• If you offered any designated services during the reporting period, you must change the answer that you provided above.
• If you have stopped providing designated services and do not expect to provide designated services again, you must request removal from the Reporting Entities Roll in addition to completing this form.

If you have stopped providing designated services but are likely to provide designated services again in the future, you do not need to request removal from the Reporting Entities Roll. However, AUSTRAC may be in touch with you to understand your plans to recommence providing designated services.

Do you have less than 5 employees? (Yes or No)

Has there been a change in key personnel or contact details for your business? (Yes or No)

Employee

A person who is employed full time or part time, or a casual staff member paid under contract or through wages or salary.

Key personnel

Individuals who have the ability to influence business decisions over the entity’s finances and operations.

If Yes:

Have you notified AUSTRAC of these changes? (Yes or No)

How did you provide designated services in 2021? (Select all that apply)

• ATM
• IDM
• Electronic gaming machine
• Email
• Face to face
• Fax
• Mobile application
• Remittance platform
• Self-service gambling terminal
• Telephone
• Website
• Additional method(s)

IDM

Intelligent Deposit Machine, a type of advanced ATM that offers self-service transaction facilities which credits cash and cheque deposits to recipient accounts.

Mobile application

Is software often called an "App", designed to run on a mobile device, such as a smartphone or tablet.

Remittance platform

A system that enables funds transfers for remittance purposes.

If you are a remittance network provider, whose affiliates conduct transactions using your remittance platforms, you MUST select this option.

Self-service gambling terminal

A terminal at which customers can credit or withdraw from an account or place a bet or wager. Self-service gambling terminal does NOT include an electronic gaming machine.

Additional method(s)

Select this option if you provided designated service(s) using methods other than, or in addition to, those that are listed.

If you enter more than one 'Additional method', please separate them with a comma.

Were any of the above delivery methods introduced in 2021? (Yes or No)

Delivery methods

Channels through which your business provides or delivers the designated services.

If Yes:

Why were these delivery methods introduced in 2021?

Which delivery methods were introduced in 2021? (select all that apply)

• ATM
• IDM
• Electronic gaming machine
• Email
• Face to face
• Fax
• Mobile application
• Remittance platform
• Self-service gambling terminal
• Telephone
• Website
• Additional method(s)

Outsourcing

Outsourcing of the AML/CTF program on your behalf:

• Includes using any overseas businesses, even if that business is related to your business.
• Excludes using a domestic business that is related to your business.
• Excludes use of third party software applications and lists.

If Yes:

Business legal name of provider?

Outsourcing AML/CTF program development includes:

• outsourcing the initial development of your program
• outsourcing changes or updates to your program.

If Yes: 

Have you checked the program is tailored to your business and its ML/TF risks? Business legal name of provider?

If Yes:

Business legal name of provider?

Did you outsource transaction reporting? (Yes or No)

If Yes:

Business legal name of provider?

Do you have an AML/CTF program? (Yes or No)

AML/CTF Program

Sole trader or individual

If your business operates as a sole trader or an individual, you are still required to have an AML/CTF program.

If No:

What was the reason for not having an AML/CTF program?

AML/CTF Program

Explain why you do not have an AML/CTF program.

If Yes:

When was the AML/CTF program last  approved? (select one)

• In 2021
• Within the previous two years
• Within the previous three years
• More than three years ago
• Program has not been approved

AML/CTF program approval

Approved program

Approved means adoption of the initial program or approval of changes to your program by your board, senior management or equivalent.

Sole trader

If your business operates as a sole trader or an individual, then the sole trader or individual will need to approve the program.

Governing board

If your business does not have a governing board, then your senior management will need to approve the program.

If the program has not been approved:

Why has the AML/CTF program not been approved?

If Yes: 

What prompted these changes? (Select all that apply)

• AUSTRAC compliance assessment
• AUSTRAC enforcement action
• AUSTRAC feedback & guidance
• Change of AML/CTF Compliance Officer
• Changes to your ML/TF risk assessment
• Newly identified risks
• New designated service
• New technology or delivery method
• Regular scheduled review
• Internal review of systems or procedures
• Advice from industry body
• Advice from external consultant or service provider
• Media reports
• Independent review
• Changes to legislation
• Additional reason(s) for change

Changes to AML/CTF program
The events that prompted changes to the program. These may have occurred outside of the reporting period.

Media reports
Reports include, but are not limited to, newspaper articles, news websites, social media.

Additional reason(s)
Select this option if you have reason(s) other than, or in addition to, the reasons that are listed.

If you enter more than one 'Additional reason', please separate them with a comma.

When was Part A of the program most recently independently reviewed?(select one)

• In 2021
• Within the previous two years
• Within the previous three years
• More than three years ago
• Program has not been independently reviewed

If your program has not been independently reviewed:

Why has your program not been independently reviewed?

How often does your AML/CTF program state that your Part A program must be independently reviewed? (select one)

• Annually
• Every two years
• Every three years
• Less frequently than every three years
• Program review is based on the triggering of an event (i.e. change in business structure)
• Program does not specify frequency of independent reviews
• Other

If no frequency of independent review is specified:

Why does your program not specify a frequency? (free text)

If your AML/CTF program has been independently reviewed: What prompted this review? (Select all that apply)

• AUSTRAC compliance assessment
• AUSTRAC enforcement action
• AUSTRAC feedback & guidance
• Change of AML/CTF Compliance Officer
• Changes to your ML/TF risk assessment
• Newly identified risks
• New designated service
• New technology or delivery method
• Regular scheduled review
• Internal review of systems or procedures
• Advice from industry body
• Advice from external consultant or service provider
• Media reports
• Independent review
• Changes to legislation
• Additional reason(s) for changes

Reasons for review
The events that prompted this review.  These may have occurred outside of the reporting period.

Media reports
Reports include, but are not limited to, newspaper articles, news websites, social media.

Additional reason(s) for changes
Select this option if you have reason(s) other than, or in addition to, the reasons that are listed.

If you enter more than one 'Additional reason', please separate them with a comma.

If conducted externally:

Service provider type (select one)

• Accountant
• Lawyer
• Other

Did you report internally to the board or senior management on any of the following matters in 2021? (Yes, No, I am solely responsible for AML/CTF oversight - the business does not have a Board or Senior Management)

• AML/CTF risk awareness training statistics
• AUSTRAC feedback & guidance
• Independent review or remediation
• Performance of outsourced functions
• Newly identified risks
• Staff non-compliance with AML/CTF program
• Transaction monitoring information
• Changes to ML/TF risk assessment
• Other matters

Reporting internally
Means informing your board, senior management or equivalent through a recorded notification (e.g. email, written brief, attendance at a minuted meeting).

Other matter(s)
Select this option if you reported on any matter(s) other than, or in addition to, the matters that are listed.

If you enter more than one 'Other matter', please separate them with a comma.

What matters were reported internally in 2021?

• AML/CTF risk awareness training statistics
• AUSTRAC feedback & guidance
• Independent review or remediation
• Performance of outsourced functions
• Newly identified risks
• Staff non-compliance with AML/CTF program
• Transaction monitoring information
• Changes to ML/TF risk assessment
• Other matters

ML/TF

ML/TF means money laundering and terrorism financing

If Yes:

Was this risk assessment documented? (Yes or No)

If Yes:

What prompted this risk assessment? (select all that apply)

• AUSTRAC compliance assessment
• AUSTRAC enforcement action
• AUSTRAC feedback & guidance
• Change of AML/CTF Compliance Officer
• Newly identified risks
• New designated service
• New technology or delivery method
• Regular scheduled review
• New risk assessment methodology
• Advice from industry body
• Advice from external consultant or service provider
• Media reports
• Independent review
• Changes to legislation
• Additional reason(s) for risk assessment

Media reports

Reports include, but are not limited to, newspaper articles, news websites, social media.

Additional reason(s)

Select this option if you had reason(s) other than, or in addition to, the reasons that are listed.

If you enter more than one additional reason, please separate them with a comma.

What employee checks do you conduct?(select all that apply)

• Check licensing
• Open source searches
• Police checks
• Other qualification checks
• Reference checks
• Sanctions and PEP checks
• Social media review
• Additional check(s)

Employee check

Third party providers

You have also conducted a check if you use a third party provider for employee due diligence. Select the checks that they undertake on your behalf.

Open source searches

Information searches using publicly available sources on internet.

PEP

A PEP is a politically exposed person.

Social media review

Information searches on social network online platforms.

Additional checks

Select this option if you conducted checks other than, or in addition to, those that are listed.

If you enter more than one 'Additional check', please separate them with a comma.

ML/TF

ML/TF means money laundering and terrorism financing.

If Yes:

What AML/CTF training did you provide?

• Training for new employees
• Regularly scheduled refresher training
• Training on request
• Additional training

AML/CTF training type

Additional training type(s)

Select this option if you provided training other than, or in addition to, the types that are listed.

If you enter more than one 'Additional training', please separate them with a comma

Updates to AML/CTF training program

Includes changes to the content of training, the way in which the training was delivered, who it was delivered to, or how frequently it was delivered.

If Yes:

What prompted this update? (select all that apply)

• AUSTRAC compliance assessment
• AUSTRAC enforcement action
• AUSTRAC feedback & guidance
• Changes to your ML/TF risk assessment
• New designated service
• Newly identified risks
• Internal review of systems or procedures
• New technology or delivery method
• Advice from industry body
• Advice from external consultant or service provider
• Media reports
• Independent review
• Changes to legislation
• Additional reason(s) for update

Media reports

Reports include, but are not limited to, newspaper articles, news websites, social media.

Additional reason(s)

Select this option if you had reason(s) other than, or in addition to, the reasons that are listed.

If you enter more than one 'Additional reason', please separate them with a comma.

What are your Customer types? (select all that apply)

• Individual
• Company
• Trustee
• Partnership
• Association
• Registered co-operative
• Government body 

Customer types

These are the types of customers that you provide designated services to.

If Yes:

How did you verify identity of your customers?

• Document based verification
• Electronic verification

Electronic Verification

Electronic verification refers to verification of a customer’s identity via reliable and independent electronic data sources. The AML/CTF Rules do not stipulate how a business should carry out electronic verification but business must consider (among other things):

• the accuracy of the document
• how comprehensive the document is
• whether the document is maintained by a government body, legalisation, or a third party; and
• whether the electronic document can be additionally authenticated.

If No:

Why did you not verify the identity of your customers in 2021? (free text)

High risk customer

You are required to assess what you consider to be a high risk customer within your business. This assessment should be set out in your AML/CTF program. Factors that you should take into account include:

• The legal structure of your customer (i.e. individual, company, trustee)
• The beneficial owners of your customer (if applicable)
• The source of funds and wealth of your customer
• The nature and purpose of the business relationship with your customers
• The control structure of your non-individual customers
• The types of designated services that you provide
• The methods by which you provide designated services
• The foreign jurisdictions with which you deal.

Politically Exposed Persons (PEPs)

Where your business uses a broader PEP definition than that prescribed by the AML/CTF Act, you may choose to answer based on that definition.

If Yes:

How did you identify PEPs (select all that apply)

• Media review
• Open source searches
• Commercial database
• Sanctions lists
• Additional identification method(s)

Politically Exposed Persons (PEPs) identification

Where your business uses a broader PEP definition than that prescribed by the AML/CTF Act, you may choose to answer based on that definition.

Open source searches

Information searches using publicly available sources on internet.

Commercial database

A database of information developed and maintained by a commercial entity and made available to customers. This is the information for which you are likely to pay or subscribe for.

Additional method(s)

Select this option if you identify PEPs using methods other than, or in addition to, the methods that are listed.

If you enter more than one ‘Additional method', please separate them with a comma.

How many of your customers did you identify as PEPs?

If no PEP checks were conducted:

Why did you not perform PEP checks in 2021?

Unusual or potentially suspicious activity

Your staff reporting

You or your staff may report unusual or potentially suspicious activity by escalating the matter to a specified person or area within your business or by submitting a suspicious matter report (SMR) directly to AUSTRAC.

If Yes:

How did your staff report unusual or potentially suspicious activity? (select all that apply)

• Email (internal)
• Online form (internal)
• Paper form (internal)
• Verbal conversation (internal)
• Submit SMR to AUSTRAC (external)
• Additional reporting methods (internal)
• Additional reporting methods (external)

Reporting of unusual or suspicious activity

You or your staff may report unusual or potentially suspicious activity by escalating the matter to a specified person or area within your business or by submitting a suspicious matter report (SMR) directly to AUSTRAC.

Internal

Reporting processes within your business.

External

Reports to, and engagement with, AUSTRAC.

Online form

A digital form that is accessible and editable online.

SMR

SMR means suspicious matter report.

Additional method(s)

Select this option if you report using methods other than, or in addition to, the reporting methods that are listed.

If you enter more than one 'Additional method', please separate them with a comma.

If Yes:

Is your TMP Manual, automated or both? (select one)

Manual

Transactions are added to a spreadsheet, or ledger and manually reviewed for any potential anomalies, outliers, or unusual activity.

Automated

A series of predefined rules built into a software program or system. The rules are then run over your transaction data and alerts generate whenever a transaction ‘hits’ on a rule.

If automated or both are selected:

Describe the automated systems you use as part of your TMP (free text).

Transaction Monitoring Program (TMP) rules

Any rules, logic or thresholds that are used to identify unusual or potentially suspicious transaction activity.

If Yes:

What prompted you to review your TMP rules? (select all that apply)

• AUSTRAC compliance assessment
• AUSTRAC enforcement action
• AUSTRAC feedback & guidance
• Newly identified risks
• New designated service
• New technology or delivery method
• Regular scheduled review
• Change of AML/CTF Compliance Officer
• Changes to your ML/TF risk assessment
• High ratio of false-positives
• Advice from industry body
• Advice from external consultant or service provider
• Media reports
• Independent review
• Changes to legislation
• Additional reason(s) for review

Review of TMP rules

High ratio of false-positives

A significant proportion of the matters identified through a particular rule or threshold are deemed not to be suspicious.

Media reports

Reports include, but are not limited to, newspaper articles, news websites, social media.

Additional reasons for review

Select this option if you had reason(s) other than, or in addition to, those that are listed.

If you enter more than one 'Additional reason', please separate them with a comma.

If response to the question ‘Do you have a TMP in place’ is Yes: 

If No:

Why did your TMP not identify any suspicious customer transactions. (Free text)

If Yes:

Did you review these matters in any order of priority? (Yes or No)

If Yes:

What factors were given priority? (select all that apply)

• Customer risk
• Jurisdiction risk
• ML/TF risk
• Product risk
• Transaction value
• Which rule or threshold was hit
• Additional factor(s) given priority

Jurisdiction risk

Risk associated with doing business with a customer located in, or transacting through, a foreign country.

ML/TF

ML/TF means money laundering and terrorism financing.

Additional factor(s)

Select this option if you had factor(s) other than, or in addition to, those that are listed.

If you enter more than one 'additional factor', please separate them with a comma.

If No:

Why did you not conduct ECDD in 2021? (Free text)

If Yes:

How did you conduct ECDD?(select all that apply)

• Extra information gathered
• More analysis of KYC information
• Verify or re-verify KYC information
• Verify or re-verify beneficial owner information
• More detailed analysis and transaction monitoring
• Senior management approval
• Consider whether to process transaction
• Additional method(s)

Conducting ECDD

Extra information gathered

Collection of extra information from the customer or third party sources to clarify already collected KYC or beneficial owner information, or to identify the source of wealth and funds of the customer and beneficial owners.

KYC information

Know-Your-Customer information.

Senior management approval

An approval by senior management for continuing the business relationship and the provision of a designated service to the customer.

Additional methods

Select this option if you used method(s) other than, or in addition to, those that are listed.

If you enter more than one 'Additional method', please separate them with a comma.

Reports to AUSTRAC

Reports include threshold transaction reports (TTR), suspicious matter reports (SMR), international funds transfer instructions (IFTI) and compliance reports.

If Yes:

How did you ensure your reports were submitted on time? (select all that apply)

• Automated reporting system
• Regular monitoring and checks
• Scheduled reporting times
• Specialised reporting function
• System alerts or warnings
• Additional method(s)

On time

On time means within the timeframes specified in the AML/CTF Act and Rules.

Specialised reporting function

Select this option if transaction reporting was undertaken by a specific team or person who is not the AML/CTF Compliance Officer.

Additional method(s)

Select this option if you used method(s) other than, or in addition to, those that are listed.

If you enter more than one 'Additional method', please separate them with a comma.

If Yes:

How did you ensure your reports were accurate? (select all that apply)

• Automated reporting system
• Compare submitted reports to internal records
• Compliance Officer reviews all reports
• Random sampling of reports prior to submission
• Random sampling of submitted reports
• Regular external audit of submitted reports
• Regular monitoring and checks
• Specialised reporting function
• Additional method(s)

Specialised reporting function

Select this option if transaction reporting was undertaken by a specific team or person who is not the AML/CTF Compliance Officer.

Additional method(s)

Select this option if you used method(s) other than, or in addition to, those that are listed.

If you enter more than one 'Additional method', please separate them with a comma.

If Yes:

What feedback or guidance material did you receive? (select all that apply)

• Correspondence from AUSTRAC in relation to your business specifically
• Correspondence from AUSTRAC in relation to your industry
•  Correspondence from AUSTRAC in relation to all Reporting Entities
• AUSTRAC publications in relation to your industry
• AUSTRAC publications in relation to all Reporting Entities
• Other

What did you do in response to this? (select all that apply)

• Communicated or escalated feedback internally
• Conducted training
• Increased AML/CTF resourcing
• Reviewed or changed AML/CTF program
• Reviewed or changed ML/TF risk assessment
• Reviewed or changed TMP rules
• Back-captured transaction reports
• No action required
• Additional action(s)

Response to AUSTRAC feedback

ML/TF

ML/TF means money laundering and terrorism financing.

Additional action(s)

Select this option if you took action other than, or in addition to, those that are listed.

If you enter more than one 'Additional action', please separate them with a comma.

If Yes:

Please enter your preferred language/s.