AML software terms, in plain English
You shouldn't need to speak AML to choose AML software. These are the terms we use across the site — each capability page explains what the capability means when you're comparing products.
The AML alphabet
AML / CTF
Anti-Money Laundering and Counter-Terrorism Financing — the regime Australian reporting entities operate under.
Tranche 2
The second wave of the AML/CTF reforms, which brought accountants, lawyers, conveyancers, real estate agents and bullion dealers into the regime.
Reporting entity
A business that has obligations under the AML/CTF Act, including identifying customers and reporting suspicious matters.
AUSTRAC
Australia's financial intelligence agency and the AML/CTF regulator. Suspicious matter reports and threshold transaction reports are lodged with AUSTRAC.
UBO
Ultimate beneficial owner — the natural person who ultimately owns or controls an entity.
Source of funds / wealth
Where a customer's money comes from, and how they built their wealth — captured during enhanced due diligence.
Lodgement
Submitting a report (such as an SMR) to AUSTRAC. Software that prepares a report is not the same as software that lodges it.
Ongoing monitoring
Re-reviewing customers over time, rather than checking them once at onboarding.
Transaction monitoring
Automated watching of transaction patterns for unusual activity — a different capability from ongoing customer monitoring.
Data residency
Where a provider stores customer data. Australian residency means data is held in Australia.
Program & governance
AML/CTF program creation
The software helps you produce an AML/CTF program document, not just a checklist.
Program maintenance and review
Keeping the program current after initial setup — reviews, updates and a corrective-action loop — rather than producing the document once.
Risk assessment
A rated risk assessment that drives how the system treats each customer or matter.
Independent evaluation support (s84)
Support for the periodic independent evaluation of your program, including tracking it as an obligation.
Staff training
Assignments with completion tracking, so you can show who has been trained.
CDD & entity work
Customer due diligence
Structured capture of customer details with a recorded verification decision.
Know-your-business (entity checks)
Verifying a company or other entity against a reliable independent source — separate from checking the people behind it.
Beneficial ownership and control
Identifying who ultimately owns or controls an entity, with threshold logic. This is different from a basic company check.
Enhanced due diligence
Structured capture of source of funds and source of wealth for higher-risk relationships.
Reliance arrangements
Recording a third-party reliance arrangement where another entity performs some of your due diligence.
Identity verification
Electronic identity verification
Verification against an electronic data source rather than paper documents.
Biometric liveness and face match
Confirms a live person is present (anti-spoofing) and matches them to the document photo.
Document Verification Service (DVS) access
Checks identity documents against the issuing agency through the government DVS. If DVS is a must-have, only providers verified as offering it can fully satisfy you.
Screening & monitoring
PEP and sanctions screening
Screening against politically exposed persons and sanctions lists, including DFAT consolidated lists.
Ongoing customer monitoring
Scheduled or event-triggered re-review of customers — not just a one-off check at onboarding.
Automated transaction monitoring (bank-style rules)
Rules running over a feed of transactions, the way a bank monitors accounts. Most Tranche 2 designated services (accounting, legal, real estate) involve no such feed, and the Act asks for risk-based monitoring tied to the designated service instead — see 'Monitoring by designated service'. Select this only if you specifically need automated transaction surveillance.
Reporting & control
Suspicious matter report workflow
Internal escalation of unusual activity through to a filing decision. This is not the same as direct AUSTRAC submission.
AUSTRAC SMR XML export
Produces the AUSTRAC XML submission format. Few providers document this — most describe PDF output for manual entry.
Tipping-off controls (s123)
System-enforced access restrictions so staff cannot tip off a customer that a report has been made.
Threshold transaction reporting
A threshold transaction register with the logic for identifying reportable transactions.
Evidence & extensibility
Evidence pack export
Packages records and evidence for review — for example handing a bundle to an auditor or evaluator.
Immutable audit log
An append-only record of changes that cannot be silently edited.
API access
A documented public API so the product can be integrated with systems you already run.
Tranche 2 operations
Risk assessed per designated service
Risk is assessed for the designated service you provide, not only as a generic customer score.
Ongoing monitoring triggered by designated service and risk
Customers are re-reviewed when the service or the risk changes, e.g. a new designated service or a higher rating, not only on a timer.
Program obligations calendar
Tells you when program review, effectiveness checks, the AMLCO report to the governing body and the independent evaluation are due.
Versioned AML program and CDD records
Programs and CDD reviews are kept as versions, so you can show what you knew and decided on a given date.
Escalation to AMLCO or manager with outcome recorded
Staff escalate a concern to the AMLCO or a manager, and the outcome is recorded.
Expired document alerts
Flags customer identity documents that have expired, ideally while an engagement is open.
Reliance CDD requests sent and received
Request a customer's CDD from another reporting entity, or answer such a request, inside the product. A register of reliance agreements alone is partial.