AUSTRAC’s performance framework
Our performance framework is designed to assess the agency’s ability to deliver its purpose to discover, understand and disrupt criminal financial activities.
Our purpose has evolved over the last year to incorporate ‘disrupt’, to more clearly define the impact of our work. The framework is aligned to our portfolio budget statement (PBS) performance criteria and outcome to protect the financial system from criminal abuse, through actionable financial intelligence and collaboration with domestic and international partners. This includes contributing to the growth of Australia’s economy.
In developing this corporate plan, we streamlined the performance section of our first plan to improve our capacity to better measure outcomes. We will continue to mature our performance framework over the next 12 months to better assess and measure our impact on financial crime and our contribution to economic growth. We will work closely with key partners to better assess and report on our shared outcomes or work programs, and conduct a stakeholder survey in 2016-17 to inform our performance criteria in future years. For this reason our four-year performance outlook will be included in our next corporate plan.
We monitor and evaluate our performance against our activities through internal dashboard reporting at executive committee meetings. We will report on our progress in our performance statement produced in our annual report.
Collect and share actionable intelligence to enable us, with our partners, to discover criminal financial activity.
- collaborate with the private sector, non-governmental and non-profit organisations, and public
- sectors nationally and internationally to build intelligence and knowledge of the AML/CTF environment
- expand and strengthen our domestic and international relationships/networks
- detect previously unknown ML/TF threats and risks.
PBS performance criteria 1: Effectiveness of a domestic and international information exchange network to detect and monitor existing and emerging money laundering and terrorism financing threats.
- 1.1 - improved capability by us and by industry to detect ML/TF risks, methods, vehicles and channels
- 1.2 - improved use of financial intelligence and AML/CTF information by domestic and international partners to generate insights and information exchange on new and emerging risks
- 1.3 - broadened domestic and global relationships for more effective information exchange.
Collaborate with our partners to analyse and interpret new and emerging threats and risks.
- transform information into actionable intelligence
- detect non-compliance and criminal abuse in the financial system
- contribute to domestic and global understanding of ML/TF threats and risks
- contribute to building the capacity of international partners to support intelligence
- build AUSTRAC’s capability to understand ML/TF threats and risks.
PBS performance criteria 2: The ongoing value to domestic and international partner agencies, taskforces and industry of financial intelligence capability, information and intelligence products produced by AUSTRAC.
- 2.1 - timely analysis of information and generation of intelligence that contributes to a national and international understanding of ML/TF risks
- 2.2 - AUSTRAC’s intelligence-led, risk-based approach drives AUSTRAC and whole-of-government priorities
- 2.3 - improved capability of AUSTRAC to understand ML/TF domestic and global threats and risks in collaboration with public and private sector partners.
Through our compliance and intelligence activities, disrupt and prevent exploitation of the financial system and criminal abuse
- provide actionable intelligence to our partners to support prevention and intervention strategies
- influence and participate in whole-of-government, multi-agency initiatives through our specialised financial intelligence expertise and regulatory actions
- undertake regulatory, compliance and enforcement actions using a risk-based approach
- improve the regulatory system to become smart regulation
- influence the domestic and global AML/CTF agenda.
PBS performance criteria 3: The effectiveness of AUSTRAC’s operations in protecting revenue, supporting the prevention and disruption of money laundering and terrorism financing, and influencing policy and law reform.
- 3.1 - improved use of actionable intelligence that contributes to revenue protection and supports crime prevention and intervention strategies
- 3.2 - effective influence and participation in whole-of-government multi-agency initiatives
- 3.3 - effective use of compliance and enforcement approaches
- 3.4 - improved regulatory system to enhance intelligence-led and risk-based approaches leading to smart regulation
- 3.5 - demonstrated influence of the domestic and global AML/CTF agenda
Performance measurement methodology
AUSTRAC’s vision is a financial system free from criminal abuse. We have processes to discover, understand and disrupt serious criminal activity.
Our performance is measured against qualitative and quantitative factors. A main challenge is quantifying the types and results of our disruption work. For example, there is usually a significant interval between providing actionable financial intelligence to a partner agency, and the matter being resolved before a court. This duration will often cross more than one reporting period.
The methods that can measure our performance against our key performance criteria (on pages 18–19) are:
|Performance methodology (PM)||Performance criteria||Type of measure|
|PM 1: Collation and evaluation of stakeholder views||Provides insight to all criteria||Quantitative and qualitative|
|PM 2: Demonstrated influence and outcomes tied with AUSTRAC’s purpose and national priorities||Provides insight to all criteria||Quantitative and qualitative|
|PM 3: Demonstrated progress against our response to the independent statutory review of the AML/CTF Act||1.1, 2.3, 3.4||Qualitative|
|PM 4: Key identified milestones met in the design of a national centre for financial intelligence in collaboration with private and public sector partners||1.1, 1.3, 2.3||Qualitative|
Regulator performance framework
The Regulator Performance Framework assesses regulators’ performance, such as their interaction with business, the community and individuals, while carrying out their functions.
The framework requires regulators to undertake an annual self-assessment of their performance. A stakeholder consultation group will review the self-assessment to provide appropriate quality assurance.
AUSTRAC will assess its performance against the following outcome-based key performance indicators listed below for cutting red tape:
- Regulators do not unnecessarily impede the efficient operation of regulated entities
- Communication with regulated entities is clear, targeted and effective
- Actions undertaken by regulators are proportionate to the regulatory risk being managed
- Compliance and monitoring approaches are streamlined and coordinated
- Regulators are open and transparent in their dealings with regulated entities
- Regulators actively contribute to the continuous improvement of regulatory frameworks.