Overview of Key Personnel
- In simple terms: Key personnel are the people who can materially influence an entity’s finances and operations, so AUSTRAC expects you to apply extra care when selecting, screening and overseeing them.
- Why it matters for Tranche 2: These roles often sit at the decision points where ML and TF risk is either controlled or ignored, especially in real estate, legal, accounting, TCSP, and precious metals businesses.
What Key Personnel?
In AUSTRAC terms, key personnel are individuals who can influence business decisions over an entity’s finances and operations. The precise legal meaning depends on the type of entity and is set out in the AML/CTF Rules.
Real-World Examples of Key Personnel
- A director or partner who approves high risk client onboarding and exceptions.
- A practice manager who controls client account opening and the release of funds.
- A TCSP manager who can form companies and appoint nominee directors.
- A real estate licensee in charge who sets the acceptance criteria for buyers and vendors.
Legal and Regulatory References
- AML/CTF Rules 2007, chapter 27.2(9), definition and application of key personnel.
- Your broader governance expectations sit inside your AML/CTF program and risk based controls (particularly relevant as Tranche 2 entities enter the regime).
Best Practice for Tranche 2 Businesses
- Maintain a Key Personnel Register with role, responsibilities, delegations, and start and end dates.
- Conduct fit and proper style checks proportionate to risk, including conflict of interest declarations.
- Separate duties so that no single individual can approve onboarding, payment, and record keeping end to end.
- Train key personnel on tipping off, escalation pathways, and quality reporting expectations.
Common Challenges for Key Personnel
- Small firms where one person wears multiple hats and segregation of duties is difficult.
- Informal delegations that are not written down, causing accountability gaps.
- Over reliance on outsourced admin without clear oversight.
Closing Summary – What to Remember
Treat “key personnel” as a governance control, not a label. If you cannot show who holds power, what checks you apply, and how oversight works, your AML/CTF posture will look weak during review.
How Tranche 2 Consultants can help: build a key personnel framework, registers, delegations, and training that match AUSTRAC expectations and your operating model.
“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.”
