AUSTRAC Releases Updated Terrorism Financing Risks for NPOs

AUSTRAC assessed the overall TF risk across Australia’s NPO sector as limited, with higher exposure concentrated in a very small subset of organisations linked to specific activities, structures or operating environments.

Key developments highlighted in the report include:

➡️ Organisation Size: Higher-risk NPOs are increasingly smaller or medium-sized organisations;

➡️ Structure Type: A growing proportion of higher-risk NPOs are incorporated entities or Australian public companies;

➡️ Transaction Characteristics: Inbound International Financial Transaction Instructions (IFTI) are no longer seen as a key indicator in detected cases;

➡️ Activity Length: Most higher-risk NPOs no show longer histories of legitimate activity, challenging the previous view that newer organisations are more likely to present higher risk.

✅ Financial institutions (FIs) should review risk-based controls for NPO customers, particularly those operating in high-risk jurisdictions or conflict zones, and update transaction monitoring, customer due diligence (CDD) and customer risk assessment methodologies (CRAMs) to account for the evolving indicators highlighted in the report.

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