AUSTRAC released new guidance in October 2022 to help you undertake source of funds and wealth checks on relevant customers.

Criminals use sophisticated methods in an attempt to conceal the sources of their illicit funds and wealth. You are required to have procedures in place to establish where a customers’ funds and wealth come from as part of your enhanced customer due diligence procedures.

AUSTRAC developed this guidance to help you to undertake the appropriate checks and mitigate the risk that a customer’s funds and wealth relate to money laundering, terrorism financing or other serious crimes.

This updated guidance includes information on:

• collecting information on the source of funds and wealth;
• how and when to verify a customer’s source of funds and wealth;
• the development of your AML/CTF program and how to apply the risk-based approach to source of funds and wealth checks;
• what action to take if you can’t establish customer’s source of funds or wealth; and
• practical examples of how to identify a customer’s source of funds and wealth.

Please view the guidance on source of funds and source of wealth.