Detect + enhance due diligence on Domestic + Foreign PEPs
AML/CTF Rules require detection + EDD on Politically Exposed Persons (foreign + domestic + international organisation).
Who must comply
All AUSTRAC reporting entities.
What triggers it
Customer onboarding + ongoing screening.
When due
At onboarding + periodically (annual minimum for higher-risk).
Evidence required
Screening tool integration; PEP list updates; EDD file notes; senior management approvals.
Max penalty
Civil penalty of up to $36.4M (body corporate) or $7.28M (individual), maximum per contravention
Who must comply with this? The applicability test by industry, business structure and size.
Summary
AML/CTF Rules Part 4.13 require reporting entities to detect Politically Exposed Persons (foreign PEPs + domestic PEPs + heads of international organisations) + apply Enhanced Due Diligence including senior-management approval, source of wealth + funds + ongoing review.
Enforced by
Source legislation
Topics
Related
- CWLTHSuspicious matter, threshold, and IFTI reporting to AUSTRACLodge SMRs, TTRs ($10K+ cash), and IFTI reports via AUSTRAC Online.
- CWLTHEnrol with AUSTRAC as a reporting entityTranche 2 entities must enrol with AUSTRAC within 28 days of first providing a designated service (29 July 2026 for services from 1 July 2026).
- CWLTHDesignate an AML/CTF Compliance OfficerReporting entities must designate an eligible AML/CTF compliance officer at management level and notify AUSTRAC.
- CWLTHMaintain a written AML/CTF programEvery reporting entity needs a documented AML/CTF program — an ML/TF risk assessment plus AML/CTF policies.
- CWLTHCustomer due diligence (KYC) on every customerIdentify and verify every customer (and beneficial owner) before providing a designated service.
- CWLTHIndependent review of AML/CTF programReporting entities must have their whole AML/CTF program independently evaluated at least once every 3 years.
Reading
Frequently asked questions
- Who must comply with Detect + enhance due diligence on Domestic + Foreign PEPs?
- All AUSTRAC reporting entities.
- What triggers Detect + enhance due diligence on Domestic + Foreign PEPs?
- Customer onboarding + ongoing screening.
- When is Detect + enhance due diligence on Domestic + Foreign PEPs due?
- At onboarding + periodically (annual minimum for higher-risk).
- What is the maximum penalty for Detect + enhance due diligence on Domestic + Foreign PEPs?
- Civil penalty of up to $36.4M (body corporate) or $7.28M (individual), maximum per contravention
- What evidence is required for Detect + enhance due diligence on Domestic + Foreign PEPs?
- Screening tool integration; PEP list updates; EDD file notes; senior management approvals.
Source: https://www.austrac.gov.au/business/core-guidance. Rules Mate is not a law firm. Always verify against the live regulator source before acting.