Are data breaches a money laundering and terrorism financing risk?

Australia’s regulator AUSTRAC has published guidelines instructing reporting entities to assess potential impacts of data breaches on their exposure to money laundering and terrorism financing (ML/TF) risks. The guidelines also call for measures to manage and mitigate these risks and continually monitor for data breaches that may affect their customers. Non-compliance with these guidelines will necessitate a significant change in many reporting entities’ approach to identifying and managing ML/TF risks.