1.3 Key terms in plain English

Transcript

AML/CTF comes with a lot of acronyms. In two minutes, you'll know the ones that matter. C-D-D, customer due diligence, means knowing who you're dealing with. K-Y-C, know your customer, is checking an individual. K-Y-B, know your business, is checking a company, trust or other entity. And a beneficial owner is a real person who ultimately owns or controls that entity. A PEP is a politically exposed person: someone in a prominent public role, or their family or close associates. Sanctions are lists of people and entities you can't deal with. Screening checks your customer against both. Now the reports to AUSTRAC. An S-M-R is a suspicious matter report. A T-T-R is a threshold transaction report, for physical cash of ten thousand dollars or more. And an IFTI is an international funds transfer instruction, for moving money into or out of Australia. Quick recap. C-D-D is knowing your customer, using K-Y-C for people and K-Y-B for entities. Screening covers PEPs and sanctions. And S-M-Rs, T-T-Rs and IFTIs are reports you make to AUSTRAC. Next up: enrolling with AUSTRAC and assessing your risk.