Go to top of page

Our business performance

Image of people talking around a laptop

AUSTRAC has developed a new performance framework where our vision and purpose are directly linked to our performance objectives and indicators.

Nine performance objectives have been developed. Each objective has a number of indicators to assist us to measure our performance. These new indicators have been developed with a view that they will apply to the forward years but they will be reviewed yearly to see that they are working effectively.

To measure our performance for 2015-16, we will apply a range of qualitative and quantitative measures. During the year we will collect evidence and data to assess our achievements against the indicators that relate to our purpose – to regulate, discover, understand and respond.

Due to the shared contributions with our partners, and the level of maturity of this new framework, it is not appropriate for us to have specific targets. However where it is important to the outcome or in identifying trend analysis, we have adopted quantitative performance indicators.

Our performance framework is built on an approach to create, add and share value.

Value created Value added
Knowledge A domestic and international financial system that is resilient to criminal and terrorism threat where regulated entities are empowered to be part of the solution.
Transparency
Effective regulation
Detection A financial system where our partners have the actionable intelligence to discover and treat criminality.
Disruption
Deterrence

Discover

Our business is to discover ML/TF threats and risks. To achieve this:

  • We collect information from industry and others.
  • We build knowledge of the environment.
  • We create an intelligence source for national security, law enforcement and revenue agencies.
Performance objective Indicators
1. We develop and maintain information exchange avenues with domestic and international partners.
  • Information exchange framework with domestic and international partners is developed and maintained.
  • We build partnerships and enhance information exchange with overseas FIUs and other agencies including through the provision of technical assistance.
2. AML/CTF data and intelligence is useful and accessible to our government partners, and data integrity is maintained.
  • Improvement in data quality.
  • We manage privacy obligations.
  • Accessibility of AUSTRAC Intelligence to partner agencies.

Understand

Our business is to understand the ML/TF threats and risks discovered. To achieve this:

  • We identify new and emerging compliance risks.
  • We determine risk priorities within the financial sector.
  • We detect non-compliance and criminal abuse in the financial sector.
  • We transform financial transactions data into actionable intelligence.
Performance objective Indicators
3. We identify current and emerging non-compliance risks and issues in regulated entities.
  • Establish guides and publications on compliance risks and issues.
  • Timely detection of behaviours that may indicate regulatory non-compliance.
4. We identify current and emerging money laundering and terrorism financing risks and issues.
  • Identify operational trends and methodologies to inform responses.
  • Timely detection of behaviours that may indicate money laundering and terrorism financing threats.

Respond

Our business is to respond to the threats and risks discovered - in partnership with industry and government agencies in Australia and overseas. To achieve this:

  • We take action to address non-compliance by industry.
  • We shape the regulatory system to manage ML/TF risk.
  • We provide timely, actionable financial intelligence to law enforcement, national security and revenue partners to support disruption.
  • We play a specialised financial intelligence role in multi-agency initiatives.
Performance objective Indicators
5. We respond to ML/TF risks within regulated entities by taking action that is proportionate to the level of risk that is posed.
  • Compliance activity is undertaken on a risk basis.
  • AUSTRAC enforcement action is proportionate to the ML/TF risk, the nature of the non-compliance, the reporting entity’s willingness to comply and the likely result of the enforcement action, including any likely deterrence effect arising from the enforcement action.
  • Use of intelligence products to inform our own compliance activity.
6. AUSTRAC intelligence leads to national and international law enforcement and national security outcomes, contributing to global efforts to combat money laundering and terrorism financing.
  • We play a unique, specialised financial intelligence role in multi-agency initiatives to deliver whole-of-government outcomes.
  • Timely response to national and international requests.
  • Use of our intelligence products leading to law enforcement action.
  • Timely dissemination of intelligence subject to national priorities.

Regulate

Our business is to regulate industry effectively.

To achieve this:

  • We design and enforce AML/CTF regulation.
  • We educate the sector about obligations and vulnerabilities.
  • We influence policy and build capacity in the financial sector.
Performance objective Indicators
7. We regulate effectively (in line with the regulator performance framework).
  • AUSTRAC does not unnecessarily impede the efficient operation of regulated entities.
  • Communication with regulated entities is clear, targeted and effective.
  • Actions undertaken by AUSTRAC are proportionate to the regulatory risk being managed.
  • Compliance and monitoring approaches are streamlined and co-ordinated.
  • AUSTRAC is open and transparent in their dealings with regulated entities.
  • AUSTRAC actively contributes to the continuous improvement of regulatory frameworks.
8. We maintain and improve the AML/CTF framework, and contribute to policy and law reform.
  • We are actively involved in international forums.
  • We effectively represent Australian Government interests in international bodies.
  • We engage with our partner agencies to understand their needs relating to the AML/CTF framework.
  • We provide avenues for reporting entities to provide feedback on the AML/CTF framework and consider the feedback in regulatory design.
  • We make an active contribution to Australian Government policy-making.
9. Regulated entities understand and meet their obligations.
  • Regulated entities are enrolled/registered in accordance with the AML/CTF Act.
  • Regulated entities keep their enrolment and registration information up-to-date in accordance with the AML/CTF Act and Rules.
  • Regulated entities have programs in place in accordance with the AML/CTF Act.
  • Value and number of International Funds Transfer Instruction (IFTI) reports lodged and number of reports returned to regulated entities.
  • Value and number of Threshold Transaction Reports (TTR) lodged and number of reports returned to regulated entities.
  • Number of Suspicious Matter Reports (SMR) lodged, quality of SMRs received and relevance to national priorities.
  • Number of compliance reports lodged by the due date.

Strategic shifts

In order to achieve our strategic direction over the next four years, we identity we need to make the following shifts to:

  • a more proactive agenda setting and thought leadership of financial intelligence
  • a focused strategic direction on whole-of-government priorities
  • collaborative relationships with government and industry across operations
  • our people having multidisciplinary skills that enable innovative responses to future demand
  • increased/targeted international influence and operating activity

Strategic risks

The major risks to achieving these shifts and achieving our strategic and performance objectives are:

  • AUSTRAC fails to discover or adequately respond to important intelligence or non-compliance events due to a failure in internal business processes, an inability to ensure the integrity of AUSTRAC data, or ineffective (internal and external) collaboration.
  • AUSTRAC fails to effectively respond to environmental changes or take innovation opportunities which may compromise the agency’s ability to respond to new challenges or threats.
  • AUSTRAC fails to sustain the required workforce or fails to anticipate and align its future workforce resulting in sub-optimal operational delivery and effectiveness.
Last modified: 31/08/2015 15:14