Automating Compliance: Creating and Submitting Quality SMRs to AUSTRAC

In the dynamic world of financial regulation, it's crucial to stay up-to-date with the latest protocols and practices. During our recent webinar "Creating and Submitting Quality SMRs to AUSTRAC," with special guest panel Stephen Gonnella, Manager, Reporting Management / Data Capabilities, AUSTRAC, Mellany Moldrich, Manager, Industry Education and Outreach, AUSTRAC and Jamie Muir, CAMS and Head of Customer Success, Jade ThirdEye, we shared insights around optimising Suspicious Matter Reports (SMRs) to streamline reporting procedures effectively. Here's the key takeaways from the session.

Understanding the importance of SMRs

SMRs serve as a vital tool, providing AUSTRAC and its partners with critical insights into suspicious activities, fostering a collaborative effort to safeguard the integrity of the financial system.

Streamlining SMR detection, creation, and submission with automation

A major focus of the discussion revolved around leveraging automation to streamline the detection, creation, and submission of SMRs. By harnessing technology, reporting entities can enhance efficiency, reduce manual errors, and ensure compliance with regulatory requirements.

The importance of data quality in automated SMRs

One of the cornerstones of effective SMR reporting is data quality. AUSTRAC stressed the significance of accurate, complete, and coherent data in SMRs to enhance their utility and credibility. Participants gained insights into data validation techniques and the importance of maintaining data integrity throughout the reporting process. Additionally, AUSTRAC highlighted how crucial it is to ensure accurate submissions, acknowledging the challenges reporting entities often face in this regard.

At Jade ThirdEye, our expertise in addressing the technical aspects of submissions, coupled with embedded validations, empowers reporting entities to focus on report quality rather than technical intricacies, thus maximising their efficiency. With our proven track record in providing B2B submission solutions, reporting entities can streamline their reporting processes effectively. Additionally, our data mapping solutions significantly reduce the need for manual data transfer, allowing analysts to concentrate on the quality of their grounds for suspicion.

Timeliness of reporting

Timeliness is a critical factor in SMR submissions, with AUSTRAC outlining stringent deadlines for reporting suspicious activities. Reporting entities must adhere to strict timelines, ensuring prompt submission of SMRs within three business days of forming reasonable grounds for suspicion for criminal activities and 24 hours for terrorism financing suspicions.

Enhancing Report Clarity and Connectivity

Ensuring that financial reports are intelligible to new readers without prior expertise is paramount in compliance. AUSTRAC highlighted this aspect alongside the broader theme of report quality. AUSTRAC also emphasised the importance of linking related reports for comprehensive insights.

Leveraging Jade ThirdEye's review and approve workflow, your organisation can ensure report clarity by facilitating peer reviews before submission to the regulator. With a customer-centric approach, all reports under one customer are readily visible, facilitating seamless integration into subsequent SMR reports. Additionally, our case management system's linking functionality enables the consolidation of SMR and other reports into cohesive investigations, simplifying the transition to submission for users saving them time.

Looking towards the future: AUSTRAC initiatives and reforms

In addition to discussing current practices, the webinar provided a glimpse into the future of SMR reporting. AUSTRAC highlighted ongoing initiatives, such as the Reporting Entity System Transformation Program, aimed at modernising interactions between AUSTRAC and reporting entities.

At Jade ThirdEye, we are actively engaged in IFTI-E changes for schema 2.0, ensuring that we remain at the forefront of innovation. This demonstrates our dedication to advancing our platform with functionality designed specifically for the region we serve, giving our customers what they need for their business while ensuring compliance with regulatory standards.

Guidance and resources for reporting entities

The session concluded with valuable guidance for reporting entities, encouraging them to leverage AUSTRAC's resources, including SMR guidance materials and quarterly newsletters. By staying informed and actively engaging with regulatory updates, reporting entities can navigate the complex landscape of SMR reporting effectively.

If you would like to learn more about creating and submitting quality SMRs to AUSTRAC, you can watch our webinar on the link below.