New guidance is now available to help you identify and manage the risks that may arise when outsourcing anti-money laundering and counter-terrorism financing (AML/CTF) functions.

It is your responsibility to ensure you meet your AML/CTF obligations when outsourcing. Your business will generally remain legally liable for any breach of your AML/CTF obligations, even under outsourcing arrangements. This includes incurring any penalties that may arise as a result of a breach. 

Key recommendations in this guidance

This guidance recommends that you: 

• identify the risks that may arise through outsourcing
• conduct due diligence on outsourcing providers
• understand restrictions on sharing AML/CTF information
• use a written agreement for outsourcing
• monitor and review ongoing outsourcing arrangements
• document procedures for managing outsourcing arrangements in your AML/CTF program.

What you need to do

Read the new outsourcing guidance and consider whether you need to review or update your processes in relation to using outsourcing to help meet your AML/CTF obligations.

If you have existing AML/CTF outsourcing arrangements, or are considering using outsourcing, you should take steps to manage and mitigate your risks and have appropriate oversight of your providers.

More information

If you have questions about the guidance or your outsourcing of AML/CTF obligations, email contact@austrac.gov.au.