AUSTRAC guidance on AML/CTF obligations in relation to data breaches

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has released guidance for AUSTRAC-regulated entities directly affected by a data breach or impacted by an external data breach that affects their services or customers.

Austrrac says that a data breach may require a review of customers’ risk assessments and systems and controls.

Austrac notes that data breaches may increase the ML/TF risks a business faces. This includes the risk of identity crime, fraud and cyber-enabled crime for example, by criminals using personal information or credentials obtained via a data breach incident to gain access to an account, system or network.

AUSTRAC encourages reporting entities to proactively identify data breaches that may affect them. They may do this by:

  • using details of publicly known data breaches to determine if new or existing customers have had their personal information compromised
  • hearing about a data breach directly from an affected organisation, publically available materials or through registering with the ASD’s Alert Service.

Austrac recommends systems and controls could include monitoring for:

  • changes to customer details (such as their mobile number) prior to large transaction requests that are inconsistent with the customer’s profile
  • when customers change their telephone, email and address all at once or in quick succession
  • new customers who use the same identification numbers and/or name and date of birth as an existing customer when you on-board them.

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David Jacobson

Author: David Jacobson
Principal, Bright Corporate Law
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.

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