ML/TF risk assessments
These reports are an important collaborative undertaking between industry and government to discover, understand and disrupt criminal financial activity.
Each report provides an overall risk rating, based on an assessment of the criminal threat environment, the vulnerabilities in the sector, and the associated consequences.
They are intended as a resource for reporting entities to:
- improve and refine ML/TF risk assessments and internal controls
- meet their reporting obligations under the AML/CTF Act, particularly the requirement to submit Suspicious Matter Reports to AUSTRAC.
AUSTRAC assessed the overall risk of ML/TF activity as medium. The report found that as financial planners facilitate access to financial services for their customers, this can make them susceptible to exploitation for criminal purposes. It also means planners are well-placed to detect suspicious behaviour by their customers. The report encourages the financial planning sector as a whole to ensure that AML/CTF compliance is a greater part of the organisational culture.
AUSTRAC identified higher than anticipated risks of fraud, cybercrime and terrorism financing in the superannuation sector, and has assessed the overall risk of ML/TF activity as medium. This report aims to develop awareness in the sector of these risks and help harden APRA-regulated superannuation funds against criminal activity.