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.
💡Plenitude supports clients with Customer Risk Assessment (CRA) enhancements, optimising and implementing risk-rating models underpinned by higher-quality and AI-enabled analysis of millions of potential risk rating configurations. Visit our website for more information: https://www.plenitudeconsulting.com/services/data-analytics-services