Quick KYC Information Snapshot
- In simple terms: KYC information is the set of facts you collect and verify to identify a customer and understand their ML and TF risk.
- What AUSTRAC looks for: risk based collection, reliable verification, and evidence that you used the information to manage risk.
What is the Meaning of KYC Information?
KYC information means any information about a customer that either establishes matters required for initial customer due diligence or enables you to identify or assess the customer’s ML and TF risk. It includes information obtained from the customer and from other sources.
Examples of KYC Information in Tranche 2 Contexts
- Identity details for an individual buyer, seller, client, or beneficial owner.
- Company details including existence checks and ownership and control.
- Source of funds and source of wealth indicators for higher risk matters.
- Adverse media and third party intelligence relevant to risk scoring.
Legal and Regulatory References
- AUSTRAC glossary definition of KYC information.
- Customer identification and verification obligations, documented in the Part B program, and applied using a risk based approach.
- Verification must use reliable and independent documentation or electronic data.
KYC Best Practices
- Define a KYC data standard for each customer type, including individuals, companies, trusts, and agents.
- Implement a verification ruleset that specifies acceptable documents, certified copy handling, and electronic verification sources.
- Link KYC to a clear customer risk assessment so the file tells a coherent story from onboarding to monitoring.
- Record discrepancies and how they were resolved, including decisions to decline or exit.
Common KYC Challenges
- Collecting identity data but failing to evidence verification properly.
- Treating KYC as a one off form instead of a living dataset that supports ongoing due diligence.
- Inconsistent KYC between offices and teams, creating audit failures.
Concluding Remarks
Strong KYC is not about collecting more data. It is about collecting the right data, verifying it well, and using it to make defensible risk decisions.
How Tranche 2 Consultants can help: design KYC packs, verification procedures, and file templates that stand up to AUSTRAC scrutiny and remain workable for frontline teams.
“Bookmakers sit at a natural convergence point for cash, speed and anonymity. AUSTRAC’s focus reflects the reality that wagering platforms can be misused as value transfer mechanisms if risk controls are not actively applied.”
