AUSTRAC Commits to Data Privacy as It Explores AI for Workplace Efficiency

Australia’s financial intelligence agency, AUSTRAC, has assured that its staff using publicly available artificial intelligence (AI) tools will not disclose classified or personal information.

In a newly released AI Transparency Statement, AUSTRAC outlined its approach to AI, stating that it is currently exploring ways to enhance productivity and collaboration. “The agency is considering the future adoption of AI for the purposes of workplace productivity and analytics for insights,” the statement read. However, AUSTRAC clarified that these efforts remain in the pilot phase.

Ensuring data privacy and security remains a key focus for the agency as it assesses AI tools. “Protecting the privacy and security of sensitive and classified information and the data of individuals is of paramount importance to us,” AUSTRAC stated. The agency also emphasized that its staff will adhere to strict policies when utilizing publicly available generative AI tools. “Staff who use publicly available generative AI tools for research purposes will not include or reveal any classified, personal, or otherwise sensitive information. All activities will align with legislation and policies relating to information and data.”

AUSTRAC further confirmed that it has not yet implemented AI systems that interact with the public. Additionally, AI technology will not be used to make decisions or perform administrative actions without human oversight. “Upon adoption, AUSTRAC will not use these AI methods without human intervention, monitoring, and decision-making,” the agency stated.

While AUSTRAC already employs machine learning to identify money laundering risks, it clarified that these techniques do not qualify as AI, as they are based on human-defined rules rather than autonomous learning models.

Over the next two years, AUSTRAC plans to implement reforms in anti-money laundering (AML) and counter-terrorism financing (CTF). As part of these efforts, the agency is also looking to strengthen its data and digital transformation strategies. “To support this work, we are actively looking at opportunities to leverage generative AI tools to uplift our regulatory, intelligence, and corporate operations,” AUSTRAC stated.

AUSTRAC is among a growing number of financial regulators exploring AI for enforcement and oversight. The UK’s Financial Conduct Authority (FCA) has already adopted AI-driven tools to monitor compliance with international sanctions. Andrea Bowe, Director at the FCA’s Specialist Directorate, highlighted the role of AI in fraud detection. “We are scanning approximately 100,000 websites created every day to identify those that appear to be scams, with hundreds of websites taken down as a result,” she said.

By fLEXI tEAM