AML Terms

Definition of financial institution in AML/CTF: banks, ADIs, credit unions, and others specified by rules, plus why the term matters in practice.

Learn what enhanced customer due diligence is, key risk triggers, & practical measures to mitigate money laundering and terrorism financing risks.

Enrolment with AUSTRAC explained, who needs to enrol and the main AML/CTF Tranche 2 deadlines for reporting entities.

Electronic Funds Transfer Instruction is the digital payment order that moves money between accounts and why it matters for tracking and compliance.

Definition of Domestic Politically Exposed Person, examples of roles, and why PEP screening is part of AML and compliance programs.

A digital currency exchange provider buys and sells digital currency for money – find out what this means and common compliance concerns.

Learn what digital currency means in Australia, how AUSTRAC defines it, and why it matters for compliance and upcoming virtual asset reforms.

Learn what a correspondent banking relationship is and how one bank supports another’s cross‑border services while managing AML risks.

Counterparty refers to the person or entity on the other side of a transaction whose identity and risk are reviewed under AML regulations.

Corporate Group: A collection of related companies under common ownership, requiring AML compliance across all entities for effective risk management.