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E-wallets in Singapore: How Tookitaki Helps Ensure Secure Onboarding

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Tookitaki
03 May 2023
7 min
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In recent years, e-wallets have gained significant traction in Singapore, revolutionizing how people make payments and manage their finances. As a convenient, cashless, and efficient mode of payment, e-wallets have transformed the financial landscape, providing users with a seamless experience for both online and offline transactions. The growth of e-wallets in Singapore can be attributed to the country's high smartphone penetration, tech-savvy population, and the government's push towards a cashless society.

With the increasing adoption of e-wallets, secure onboarding of users has become a critical aspect for providers to ensure a safe and trustworthy experience. As e-wallets store sensitive financial information, onboarding must adhere to stringent regulatory requirements, including anti-money laundering (AML) and know-your-customer (KYC) checks. This is where Tookitaki comes into play, offering innovative solutions that enable e-wallet providers to streamline their onboarding processes while maintaining the highest levels of security and compliance.

The E-wallet Landscape in Singapore

The rise of e-wallet usage in Singapore has been nothing short of remarkable. The e-wallet landscape in Singapore has been growing rapidly, with the country aiming to become a cashless society and reduce the use of cheques by 2025. This surge in popularity can be attributed to the country's robust digital infrastructure, supportive government policies, and an increasingly tech-savvy population. As a result, e-wallets have become an integral part of Singapore's drive towards becoming a Smart Nation, with the aim of creating a cashless, digital economy.

These e-wallets offer various capabilities, such as peer-to-peer transfers, bill payments, online shopping, and contactless payments at retail outlets, making them an attractive option for consumers seeking a convenient and efficient payment solution.

Several key players have emerged in the Singapore e-wallet market, offering a range of services and features to cater to the diverse needs of consumers and businesses. Some of the most prominent e-wallet providers include GrabPay, PayLah!, PayAnyone, FavePay, and Alipay. These e-wallets offer various capabilities, such as peer-to-peer transfers, bill payments, online shopping, and contactless payments at retail outlets, making them an attractive option for consumers seeking a convenient and efficient payment solution.

Several factors have contributed to the growth of e-wallets in Singapore.

  • Firstly, the high smartphone penetration rate and widespread internet access have provided the necessary infrastructure for e-wallet adoption.
  • Secondly, the government's push for a cashless society, through initiatives such as the Unified Point of Sale (UPOS) system and the introduction of the Singapore Quick Response Code (SGQR), has further encouraged the use of e-wallets.
  • Thirdly, the growing trend of online shopping and the demand for contactless payments, particularly in the wake of the COVID-19 pandemic, have accelerated the adoption of e-wallets as a preferred mode of payment.

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Money Laundering Risks Related to E-wallets

While e-money and e-wallets offer numerous benefits, they also carry significant money laundering risks. E-wallets, as online storage systems holding users' banking information for payment purposes, have seen significant growth since 2017, leading to a rise in money laundering concerns. The money laundering risk associated with e-money was assessed as medium, and the terrorist financing risk as low, according to the National Risk Assessment (NRA) 2015. However, the NRA 2017 revised the terrorist financing risk to a medium rating. Open-loop prepaid cards, a form of e-money, were recognized as potentially high risk.

Investigations have linked electronic money institutions (EMIs), which can issue pre-paid payment cards or digital wallets, to money laundering, fraud, and other financial crimes. To mitigate these risks, financial institutions are encouraged to develop a rigorous and comprehensive risk management process that addresses the known material risks and accommodates changes in the type and intensity of material risks associated with electronic banking and e-money activities.

Financial regulators worldwide have developed guidance and regulations to mitigate these risks and ensure the safety and security of digital payment systems. Providers of e-money issuance services under the Payment Services Act 2019 are subject to anti-money laundering (AML) and countering financing of terrorism (CFT) risk mitigation measures. These measures aim to address user protection, interoperability, and technology and cyber security risks associated with e-wallets.

Read More: Streamlining Compliance with AML Onboarding Software

The Importance of Secure Onboarding

As the e-wallet landscape in Singapore continues to grow, it becomes increasingly important for e-wallet providers to adhere to strict Anti-Money Laundering (AML) regulatory requirements. These regulations aim to prevent financial crimes such as money laundering, terrorist financing, and fraud associated with digitalising financial services.

E-wallet providers must comply with AML regulations set by the Monetary Authority of Singapore (MAS) and other relevant authorities. Compliance with these regulations helps e-wallet providers identify and manage potential AML risks associated with their services. Some potential AML risks associated with e-wallet usage include the anonymity of digital transactions, the speed of fund transfers, and the cross-border nature of these transactions, which criminals can exploit for money laundering and other illicit activities.

To ensure user trust and security, e-wallet providers must implement secure customer onboarding processes. This typically involves Know Your Customer (KYC) checks, which are essential for verifying the identity of users and assessing the risk they may pose. KYC checks include collecting and verifying user information such as name, date of birth, address, and identification documents. These checks help e-wallet providers to detect and prevent potential financial crimes, thus ensuring a secure and trustworthy environment for their users.

By adhering to AML regulatory requirements and implementing secure onboarding processes, e-wallet providers in Singapore can effectively mitigate risks, protect their customers, and build trust in their services. This, in turn, will contribute to the continued growth and success of the e-wallet landscape in the country.

Tookitaki's Role in Ensuring AML Compliance for E-wallets

Tookitaki is a pioneer in the fight against financial crime, leveraging a unique and innovative approach that transcends traditional solutions. The company's Anti-Money Laundering Suite (AMLS) and Anti-Financial Crime (AFC) Ecosystem work in tandem to address the limitations of siloed systems in combating money laundering.

The AFC Ecosystem is a community-based platform that facilitates sharing of information and best practices in the battle against financial crime. Powering this ecosystem is our Typology Repository, a living database of money laundering techniques and schemes. This repository is enriched by the collective experiences and knowledge of financial institutions, regulatory bodies, and risk consultants worldwide, encompassing a broad range of typologies from traditional methods to emerging trends.

The AMLS is a software solution deployed at financial institutions. It is an end-to-end operating system that modernises compliance processes for banks and fintechs. The AMLS collaborates with the AFC Ecosystem through federated machine learning. This integration allows the AMLS to extract new typologies from the AFC Ecosystem, executing them at the clients' end to ensure that their AML programs remain cutting-edge.

Tookitaki AMLS and AFC Ecosystem

How Tookitaki's technology addresses the compliance challenges of e-wallets

Tookitaki's technology goes beyond traditional rule-based systems by utilizing machine learning algorithms to identify and predict financial crime patterns. This enables e-wallet providers to detect suspicious activities more accurately and effectively while reducing false positives. The technology also automates the KYC process, streamlining the onboarding experience for both the provider and the user.

By implementing Tookitaki's AML compliance solutions, e-wallet providers can enjoy several benefits, including:

  • Improved regulatory compliance: Tookitaki's solutions ensure that e-wallet providers remain compliant with AML regulations, reducing the risk of fines and reputational damage.
  • Enhanced risk management: The advanced analytics capabilities of Tookitaki's technology help e-wallet providers to identify better and manage potential risks associated with their services.
  • Increased operational efficiency: Automating the KYC process and other compliance tasks leads to cost savings and improved operational efficiency.
  • Greater customer trust: Secure onboarding processes, coupled with robust AML measures, contribute to building user trust and confidence in the e-wallet provider's services.

Implementing Tookitaki's AMLS positively impacts the onboarding process and user experience for e-wallet providers in several ways:

  • Streamlined onboarding: Tookitaki's real-time prospect screening and prospect risk scoring solutions help mitigate AML risks while onboarding new customers, providing a faster and more seamless experience.
  • Enhanced security: The AMLS help de-risk business with a 360-degree dynamic risk view of customers. Its integrated transaction monitoring, smart screening, customer risk scoring and case management modules provide fast-growing e-wallets complete control of their AML risks.
  • Reduced friction: By minimizing false positives and automating compliance tasks, Tookitaki's solutions help reduce friction in the onboarding process, leading to increased user satisfaction.

Tookitaki plays a crucial role in ensuring secure onboarding for e-wallet providers in Singapore by offering cutting-edge AML compliance solutions. These solutions not only help providers adhere to regulatory requirements but also enhance their risk management capabilities, improve operational efficiency, and foster trust among users.

Securing the Future of E-wallets in Singapore

As the e-wallet market continues to grow in Singapore, the significance of secure onboarding cannot be overstated. It plays a vital role in safeguarding users' personal and financial information while ensuring compliance with AML regulations. To maintain the trust of users and regulators alike, e-wallet providers must prioritize the adoption of advanced AML compliance solutions like Tookitaki's.

Tookitaki's innovative solutions provide enhanced security and compliance measures that help e-wallet providers stay ahead in a competitive market while ensuring a seamless user experience. By implementing Tookitaki's AML compliance technology, e-wallet providers can effectively mitigate risks, streamline their onboarding processes, and foster trust among their users.

Don't miss the opportunity to strengthen your e-wallet's security and compliance measures. Book a demo for Tookitaki’s AML compliance solutions today and experience the difference that cutting-edge technology can make in securing the future of e-wallets in Singapore.

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Blogs
19 Jun 2025
5 min
read

Australia on Alert: Why Financial Crime Prevention Needs a Smarter Playbook

From traditional banks to rising fintechs, Australia's financial sector is under siege—not from market volatility, but from the surging tide of financial crime. In recent years, the country has become a hotspot for tech-enabled fraud and cross-border money laundering.

A surge in scams, evolving typologies, and increasingly sophisticated actors are pressuring institutions to confront a hard truth: the current playbook is outdated. With fraudsters exploiting digital platforms and faster payments, financial institutions must now pivot from reactive defences to real-time, intelligence-led prevention strategies.

The Australian government has stepped up through initiatives like the National Anti-Scam Centre and legislative reforms—but the real battleground lies inside financial institutions. Their ability to adapt fast, collaborate widely, and think smarter will define who stays ahead.

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The Evolving Threat Landscape

Australia’s shift to instant payments via the New Payments Platform (NPP) has revolutionised financial convenience. However, it's also reduced the window for detecting fraud to mere seconds—exposing institutions to high-velocity, low-footprint crime.

In 2024, Australians lost over AUD 2 billion to scams, according to the ACCC’s Scamwatch report:

  • Investment scams accounted for the largest losses at AUD 945 million
  • Remote access scams followed with AUD 106 million
  • Other high-loss categories included payment redirection and phishing scams

Behind many of these frauds are organised crime groups that exploit vulnerabilities in onboarding systems, mule account networks, and compliance delays. These syndicates operate internationally, often laundering funds through unsuspecting victims or digital assets.

Recent alerts from AUSTRAC and ASIC also highlighted the misuse of cryptocurrency exchanges, online gaming wallets, and e-commerce platforms in money laundering schemes. The message is clear: financial crime is mutating faster than most defences can adapt.

Australia FC

Why Traditional Defences Are Falling Short

Despite growing threats, many financial institutions still rely on legacy systems that were designed for a static risk environment. These tools:

  • Depend on manual rule updates, which can take weeks or months to deploy
  • Trigger false positives at scale, overwhelming compliance teams
  • Operate in silos, with no shared visibility across institutions

For instance, a suspicious pattern flagged at one bank may go entirely undetected at another—simply because they don’t share learnings. This fragmented model gives criminals a huge advantage, allowing them to exploit gaps in coverage and coordination.

The consequences aren’t just operational—they’re strategic. As financial criminals embrace automation, phishing kits, and AI-generated deepfakes, institutions using static tools are increasingly being outpaced.

The Cost of Inaction

The financial and reputational fallout from poor detection systems can be severe.

1. Consumer Trust Erosion

Australians are increasingly vocal about scam experiences. Victims often turn to social media or regulators after being defrauded—especially if they feel the bank was slow to react or dismissive of their case.

2. Regulatory Enforcement

AUSTRAC has made headlines with its tough stance on non-compliance. High-profile penalties against Crown Resorts, Star Entertainment, and non-bank remittance services show that even giants are not immune to scrutiny.

3. Market Reputation Risk

Investors and partners view AML and fraud management as core risk factors. A single failure can trigger media attention, customer churn, and long-term brand damage.

The bottom line? Institutions can no longer afford to treat compliance as a cost centre. It’s a driver of brand trust and operational resilience.

Rethinking AML and Fraud Prevention in Australia

As criminal innovation continues to escalate, the defence strategy must be proactive, intelligent, and collaborative. The foundations of this smarter approach include:

✅ AI-Powered Detection Systems

These systems move beyond rule-based alerts to analyse behavioural patterns in real-time. By learning from past frauds and adapting dynamically, AI models can flag suspicious activity before it becomes systemic.

For example:

  • Unusual login behaviour combined with high-value NPP transfers
  • Layered payments through multiple prepaid cards and wallets
  • Transactions just under the reporting threshold from new accounts

These patterns may look innocuous in isolation, but form high-risk signals when viewed in context.

✅ Federated Intelligence Sharing

Australia’s siloed infrastructure has long limited inter-institutional learning. A federated model enables institutions to share insights without exposing sensitive data—helping detect emerging scams faster.

Shared typologies, red flags, and network patterns allow compliance teams to benefit from collective intelligence rather than fighting crime alone.

✅ Human-in-the-Loop Collaboration

Technology is only part of the answer. AI tools must be designed to empower investigators, not replace them. When AI surfaces the right alerts, compliance professionals can:

  • Reduce time-to-investigation
  • Make informed, contextual decisions
  • Focus on complex cases with real impact

This fusion of human judgement and machine precision is key to staying agile and accurate.

A Smarter Playbook in Action: How Tookitaki Helps

At Tookitaki, we’ve built an ecosystem that reflects this smarter, modern approach.

FinCense is an AI-native platform designed for real-time detection across fraud and AML. It automates threshold tuning, uses network analytics to detect mule activity, and continuously evolves with new typologies.

The AFC Ecosystem is our collaborative network of compliance professionals and institutions who contribute real-world risk scenarios and emerging fraud patterns. These scenarios are curated, validated, and available out-of-the-box for immediate deployment in FinCense.

Some examples already relevant to Australian institutions include:

  • QR code-enabled scams using fake invoice payments
  • Micro-laundering via e-wallet top-ups and fast NPP withdrawals
  • Cross-border layering involving crypto exchanges and shell businesses

Together, FinCense and the AFC Ecosystem enable institutions to:

Building a Future-Ready Framework

The question is no longer if financial crime will strike—it’s how well prepared your institution is when it does.

To be future-ready, institutions must:

  • Break silos through collaborative platforms
  • Invest in continuous learning systems that evolve with threats
  • Equip teams with intelligent tools, not more manual work

Those who act now will not only improve operational resilience, but also lead in restoring public trust.

As the financial landscape transforms, so too must the compliance infrastructure. Tomorrow’s threats demand a shared response, built on intelligence, speed, and community-led innovation.

Strengthening AML Compliance Through Technology and Collaboration

Conclusion: Trust Is the New Currency

Australia is at a turning point. The cost of reactive, siloed compliance is too high—and criminals are already exploiting the lag.

It’s time to adopt a smarter playbook. One where technology, collaboration, and shared intelligence replace outdated controls.

At Tookitaki, we’re proud to build the Trust Layer for Financial Services—empowering banks and fintechs to:

  • Stop fraud before it escalates
  • Reduce false positives and compliance fatigue
  • Strengthen transparency and accountability

Through FinCense and the AFC Ecosystem, our mission is simple: enable smarter decisions, faster actions, and safer financial systems.

Australia on Alert: Why Financial Crime Prevention Needs a Smarter Playbook
Blogs
23 Jun 2025
5 min
read

Behind the Compliance Curtain: The Future of AML in Australia

Australia’s sunny financial reputation has come under scrutiny—and this time, the spotlight is global.

From casino scandals to multi-billion-dollar remittance breaches, the country’s anti-money laundering (AML) framework is facing a pivotal moment. What was once seen as a gold standard in regional governance is now under pressure to catch up—and compliance officers across banks, fintechs, and regulatory bodies are watching closely.

So what lies behind the curtain of AML in Australia today—and what must the financial community do next?

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The AML Landscape in Australia: Where Things Stand

Australia’s AML/CFT regime has long been led by AUSTRAC, the nation’s financial intelligence unit and regulator. Over the past few years, AUSTRAC has made headlines with major enforcement actions:

  • Westpac (2020): A $1.3 billion penalty over 23 million breaches of AML laws.
  • Crown Resorts (2022): Systemic failure to monitor high-risk transactions, especially tied to junket operators and casinos.
  • Star Entertainment Group (2022): Similar failings in AML controls and customer due diligence.

These cases revealed a troubling pattern: AML risks were known, red flags existed, but institutions lacked either the technology, urgency, or capability to respond in real time.

More worryingly, Australia’s AML legal framework—particularly its coverage of non-financial sectors like lawyers, accountants, real estate agents, and high-value dealers—remains incomplete. This gap in regulatory coverage continues to raise red flags with global watchdogs, especially the Financial Action Task Force (FATF).

The Tranche 2 Reforms: Closing the Gaps or Buying Time?

For nearly two decades, Australia has delayed implementing the so-called Tranche 2 reforms, which would bring designated non-financial businesses and professions (DNFBPs) into the AML regulatory net.

What Tranche 2 Proposes:

  • AML obligations for real estate professionals, lawyers, accountants, and company service providers.
  • Stronger beneficial ownership transparency.
  • Enhanced customer due diligence and reporting mechanisms across non-financial channels.

Yet, while successive governments have pledged action, progress has been sluggish. Industry bodies have raised concerns about cost, feasibility, and regulatory overreach. But international momentum is building, and patience is wearing thin.

In its 2023 follow-up review, FATF explicitly called out Australia’s delayed reforms. Without Tranche 2, the country faces increased scrutiny—and potential reputational damage that could affect correspondent banking relationships and investor trust.

AUS blog

The Tech Factor: How Modern AML Looks in 2025

Even where regulations exist, legacy compliance systems are struggling to keep up with today’s threats. Financial crime has evolved. So must the tools to fight it.

What’s Changed:

  • Speed: Real-time payments and digital wallets mean funds can be layered, split, and moved across jurisdictions in seconds.
  • Complexity: Fraudsters are using mules, shell companies, and social engineering to blend illicit flows with legitimate ones.
  • Volume: Transaction volumes are rising, making manual reviews and static rules increasingly unviable.

Modern AML compliance now demands real-time monitoring, behavioural analysis, and AI-driven detection engines that adapt to new patterns as they emerge. This is where advanced platforms like Tookitaki’s FinCense come in—offering scenario-driven intelligence and federated learning capabilities tailored for high-risk markets like Australia.

Case Insight: Where Detection Failed—and Where Tech Could Have Helped

Consider the AUSTRAC case against Crown Resorts. Red flags—such as large, unexplained cash deposits, transactions linked to politically exposed persons (PEPs), and high-risk jurisdictions—were not acted upon for months, sometimes years.

The problem wasn’t a lack of data. It was a failure to connect the dots in real time.

With an adaptive AML system like FinCense in place, the scenario might have looked different:

  • Suspicious transaction patterns would have triggered real-time alerts.
  • Beneficiary risk scoring could have flagged high-risk links earlier.
  • AI-based learning could have surfaced anomalous activity invisible to static rule sets.

The outcome? Faster intervention, reduced institutional risk, and regulatory confidence.

Building the Future: Tookitaki’s Role in Strengthening Australia’s AML Defences

Tookitaki’s FinCense platform is designed for the complexity of modern financial ecosystems—especially those navigating regulatory reform and reputational pressure, like Australia.

Key Features That Matter:

  • Federated Learning Engine: Enables institutions to learn from emerging typologies across the region—without sharing sensitive data.
  • Real-Time Transaction Monitoring: Uses AI to surface anomalous patterns and risk indicators at the speed of today’s financial crime.
  • Scenario-Based Approach: Combines regulatory intelligence with real-world cases to keep detection capabilities relevant and context-rich.
  • Audit-Ready Investigations: Helps compliance teams manage alerts, document findings, and demonstrate control effectiveness.

As Tranche 2 looms and regulatory expectations rise, FinCense can help banks and fintechs in Australia stay ahead of both criminal innovation and regulatory demand.

What Compliance Teams Must Do Now

✅ Prepare for Tranche 2 (Even If It’s Not Here Yet)

  • Map exposure to DNFBPs.
  • Engage with vendors and consultants to scope out necessary controls.

✅ Build for Agility and Resilience

  • Invest in dynamic risk-scoring engines and AI-powered analytics.
  • Integrate systems that can adapt, not just flag transactions.

✅ Collaborate and Learn

  • Participate in intelligence-sharing platforms like the AFC Ecosystem.
  • Use scenario libraries to anticipate typologies before they strike.

✅ Rethink ROI from an AML Lens

  • With regulators now tracking the effectiveness (not just existence) of AML systems, demonstrate real-time capability, reduced false positives, and improved investigation turnaround.
Strengthening AML Compliance Through Technology and Collaboration

Conclusion: The Curtain’s Up—What Will Australia Do Next?

Australia stands at a crossroads. Behind the curtain of its legacy AML system lies both risk and opportunity.

The risk is clear: continued global scrutiny, regulatory gaps, and potential grey listing if reforms stall.
But the opportunity is greater: to lead the region with tech-driven, intelligence-led compliance that’s faster, smarter, and more collaborative than ever.

As the regulatory environment evolves, so must the institutions within it. With the right partners, like Tookitaki, and a commitment to real-time defences, Australia can transform its AML posture from reactive to revolutionary.

Because in the fight against financial crime, detection is no longer enough. It’s time to defend.

Behind the Compliance Curtain: The Future of AML in Australia
Blogs
02 Jul 2025
4 min
read

Inside AUSTRAC: Navigating Australia’s AML/CTF Regulations in a High-Risk Era

As money laundering methods grow more sophisticated, the pressure on financial institutions to detect, report, and prevent financial crime is intensifying — and AUSTRAC is at the centre of it all.
In an era where financial ecosystems are rapidly digitising, AUSTRAC’s role in overseeing Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) compliance has become mission-critical. For banks, fintechs, and other reporting entities, staying ahead of regulatory expectations is no longer just a compliance issue — it’s a matter of reputation, trust, and long-term viability.

In this blog, we explore:

  • AUSTRAC’s mandate and structure
  • Key AML/CTF obligations under Australian law
  • Landmark enforcement cases
  • Upcoming reforms, including Tranche 2
  • FATF scrutiny and global compliance pressures
  • How tech-forward compliance strategies are reshaping the future
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What is AUSTRAC and Why Does It Matter?

AUSTRAC — the Australian Transaction Reports and Analysis Centre — is the government body responsible for detecting and disrupting criminal abuse of Australia’s financial system.

AUSTRAC has a dual mandate:

  • Regulator: Supervises compliance with AML/CTF obligations.
  • Financial Intelligence Unit (FIU): Collects and analyses data to support law enforcement, national security, and international counterparts.

It works with over 17,000 reporting entities, ranging from traditional banks to digital wallets, remittance providers, gaming platforms, and more. As both a data collector and enforcer, AUSTRAC is uniquely positioned to uncover illicit financial activity at scale.

A Brief History of AML/CTF Regulation in Australia

Australia’s journey in strengthening its anti-money laundering and counter-terrorism financing framework began in earnest with the passage of the AML/CTF Act in 2006. This legislation introduced foundational obligations such as KYC procedures, transaction monitoring, and reporting requirements for a wide range of financial institutions and service providers.

Over time, the regime has evolved significantly. In 2014, AUSTRAC formalised the risk-based approach, requiring entities to tailor their AML programs based on their specific exposure to financial crime risks.

The period between 2018 and 2020 marked a turning point in enforcement, with AUSTRAC taking decisive action against some of Australia’s largest institutions — including Tabcorp, the Commonwealth Bank, and Westpac — for major compliance failures.

In the years that followed, Tranche 2 reforms were proposed to expand AML/CTF obligations to include professions such as lawyers, accountants, and real estate agents, which are known to be exploited for laundering illicit funds.

As of 2024, these reforms remain under active discussion, with the Australian government under growing pressure from international bodies such as the FATF to close regulatory gaps. The expected passage of Tranche 2 in 2025 would significantly broaden AUSTRAC’s regulatory reach and bring Australia closer in line with global AML standards.

AUSTRAC


Understanding Your AML/CTF Obligations

If your institution provides “designated services” under the AML/CTF Act, here’s what you’re required to do:

🔹 AML/CTF Program (Part A and Part B)

  • Part A: Institutional risk assessments, governance, reporting, and training
  • Part B: Customer identification and verification procedures (KYC)

🔹 Reporting Requirements

  • Suspicious Matter Reports (SMRs)
    Must be submitted when the activity raises suspicion, regardless of the amount.
  • Threshold Transaction Reports (TTRs)
    For cash transactions of AUD 10,000 or more.
  • International Funds Transfer Instructions (IFTIs)
    Mandatory for cross-border fund movements.

🔹 Customer Due Diligence (CDD)

  • Verify customer identity at onboarding
  • Apply Enhanced Due Diligence (EDD) for high-risk customers or transactions
  • Conduct ongoing monitoring

🔹 Record Keeping

  • Maintain transaction and identity verification records for at least 7 years.

AUSTRAC’s Enforcement Power: Learning from Past Failures

AUSTRAC is not just a passive regulator. When institutions fall short, the consequences are severe and public.

The Crown Resorts Case

In 2022, Crown Melbourne and Crown Perth were found guilty of systemic AML/CTF program failures. AUSTRAC investigations revealed:

  • Inadequate risk assessments of high-risk customers and junket operators
  • Poor transaction monitoring
  • Weak governance and oversight

Penalty: AUD 450 million settlement
Impact: Major reputational damage and licence scrutiny

The Westpac Case

Arguably, the most consequential case in Australia’s AML history. In 2020, Westpac was fined AUD 1.3 billion — the largest civil penalty in Australian corporate history — for:

  • Failing to report over 23 million IFTIs
  • Inadequate transaction monitoring
  • Enabling transactions linked to child exploitation networks

These cases underscore the high expectations placed on financial institutions — not just to comply, but to detect, investigate, and prevent abuse of their services.

Australia’s AML Pain Points and What Tranche 2 Means

Unregulated Professions: The Tranche 2 Gap

Australia’s AML/CTF regime currently does not cover “gatekeeper” professions — lawyers, accountants, real estate agents, and company service providers. This gap has drawn criticism from both the FATF and domestic watchdogs.

Tranche 2, expected to be legislated in 2025, will:

  • Extend AML obligations to these sectors
  • Close critical vulnerabilities exploited for shell companies, illicit property purchases, and tax evasion
  • Align Australia with global AML standards

For fintechs and financial institutions, this will mean greater scrutiny of third-party relationships and new customer categories.

FATF Evaluation: Australia Under the Global Lens

The Financial Action Task Force (FATF) — the global AML watchdog — is expected to conduct its next mutual evaluation of Australia soon. In its last review, Australia was flagged for:

  • Delays in enacting Tranche 2 reforms
  • Over-reliance on self-regulation in some sectors
  • Inconsistent enforcement levels

AUSTRAC and the government are now under pressure to demonstrate tangible improvements, including:

  • Broader coverage of at-risk sectors
  • Better risk-based supervision
  • More tech-led compliance outcomes

How Fintechs Can Stay Ahead

For fintechs, the AML/CTF journey can seem overwhelming, especially when scaling across regions. Here are five key steps to staying ahead:

  1. Invest Early in AML Infrastructure
    Don’t wait until licensing or audits to build compliance controls.
  2. Use Technology to Monitor in Real-Time
    Especially for high-velocity, small-value transactions common in wallets or P2P services.
  3. Customise Risk Scoring
    A high-risk customer in lending may not be the same as one in gaming or cross-border remittances.
  4. Build for Scalability
    Choose AML platforms that can grow with you, not patchwork solutions.
  5. Stay Informed on Regional Variations
    AUSTRAC’s expectations differ from MAS (Singapore) or BSP (Philippines); know your market.

Why AML Tech Is No Longer Optional

In today’s landscape, manual reviews and static rules don’t cut it. Criminals move faster — and so must compliance teams.

Key advantages of modern AML platforms:

  • Machine learning-based transaction monitoring
  • Dynamic threshold calibration to reduce false positives
  • Real-time alerting and case triage
  • Behavioural profiling and pattern recognition
  • Audit-ready investigation trails

How Tookitaki Helps You Stay Ahead

Tookitaki’s FinCense platform is purpose-built to tackle the real challenges banks and fintechs face in Australia and across APAC.

Key Modules:

🔹 Customer Onboarding Suite
Seamlessly integrates KYC, risk profiling, and watchlist screening

🔹 Transaction Monitoring
Scenario-based detection using patterns from the AFC Ecosystem

🔹 Smart Screening
Covers national ID, aliases, and local nuances — built to minimise false positives

🔹 FinMate (AI Copilot)
Assists investigators with summarised case narratives, red flags, and recommendations

Collaborative Advantage:

FinCense is powered by the AFC Ecosystem — a global community where financial institutions share typologies and red flags anonymously. This collective intelligence improves detection and reduces blind spots for all members.

For institutions facing rising risks from cross-border scams, shell company abuse, and real-time laundering, Tookitaki offers a smarter, community-driven alternative to traditional rule engines.

Strengthening AML Compliance Through Technology and Collaboration


Final Thoughts: A Smarter Future Starts Now

AUSTRAC’s expanding role and the upcoming Tranche 2 reforms signal a future where compliance will be more inclusive, tech-powered, and intelligence-driven.

For banks and fintechs, the opportunity lies not just in complying, but in leading. With the right tools, collaborative frameworks, and forward-thinking partners like Tookitaki, staying ahead of both regulation and risk is no longer an aspiration — it’s an expectation.

Inside AUSTRAC: Navigating Australia’s AML/CTF Regulations in a High-Risk Era