If you're new to AML, the vocabulary is a barrier. This glossary covers the 30 terms that appear most often in the Act, the Rules and provider materials.
Core terms
- AML/CTF — Anti-Money Laundering and Counter-Terrorism Financing.
- AUSTRAC — the Australian Transaction Reports and Analysis Centre, the regulator.
- Reporting entity — a person or business that provides one or more designated services.
- Designated service — a specific service listed in the Act that creates AML obligations.
- CDD — Customer Due Diligence: identifying and verifying customers.
- KYC — Know Your Customer (used interchangeably with CDD in commercial materials).
- EDD — Enhanced Due Diligence: a higher-rigour CDD applied to higher-risk customers.
- Beneficial owner — the natural person who ultimately owns or controls a customer entity.
- SMR — Suspicious Matter Report.
- TTR — Threshold Transaction Report (cash A$10,000+).
- IFTI — International Funds Transfer Instruction report.
- PEP — Politically Exposed Person.
- FATF — Financial Action Task Force, the international standard-setter.
- Tranche 2 — the 2026 expansion of the Act to cover legal, accounting, real estate, dealers in precious metals and stones, and gambling-adjacent sectors.
- Part A / Part B — the two-part program structure mandated by the Rules.
The remaining 15 terms are explained on individual provider sites — but if you've internalised the list above, you can read every AUSTRAC publication without a translator.