🧐 Transaction Monitoring

All incoming and outgoing AUD payments are subject to our transaction monitoring systems. These systems form a critical part of our AML/CTF obligations when distributing AUDD. Transaction monitoring is enabled across our entire product suite and is a mandatory safeguard.

🧾 Name Matching

Every incoming transaction is checked against the name registered or assigned to the Virtual Account (VA). Where the names match, the payment clears without delay. To accommodate real-world variations, we apply “fuzziness logic” so that partial matches are accepted. For example:

• VA: John Smith → Payment: J Smith ✅
• VA: Michael James Harrington → Payment: Michael James Harr ✅

This avoids unnecessary friction, especially when banking systems truncate long account names.

If the name does not align, the payment is flagged as In Review. At this stage, our compliance team may request supporting evidence, such as a bank statement that shows the account holder’s name, BSB, and account number. Often, these mismatches prove to be false positives - for instance, when payments come from a joint account or when a bank omits the sender’s details entirely. Once validated, the sender’s details are whitelisted for future use.

Where the mismatch is a true positive, the payment is returned and the related VA may be suspended or blacklisted.

🔍 Reference Screening

References or descriptions included in both incoming and outgoing payments are screened against our Blacklist Dictionary - a database which contains over 50,000 terms associated with illegal or prohibited activity. When a reference triggers a match, the payment is paused and placed in review.

Our compliance team takes a risk-based approach to these reviews. False positives do occur, and in those cases payments may be cleared once concerns are satisfied. To reduce unnecessary reviews, customers are strongly encouraged to use the transaction reference provided for their VA.

⏳ Review Period

When a payment is placed into review - whether for a name mismatch or a suspicious reference - it still appears in the VA’s transaction list, but the funds will not be available in their balance. A strict seven-day calendar window is applied to resolve the matter. If no resolution is achieved, the payment is cancelled: deposits are returned to the sender’s bank, and withdrawals are cancelled with funds restored to the ledger. The VA involved will remain suspended until the compliance risk has been addressed.

🛡️ Security Holds

All first-time payments, whether deposits or withdrawals, are subject to a 24-hour security hold. This buffer allows our compliance team, partner teams, and banking providers to review the transaction for potential red flags before it is processed. The hold period runs on calendar time, unaffected by weekends or public holidays. Once cleared, the sending or receiving account is whitelisted, meaning subsequent payments with the same details are not delayed by this initial hold.

✅ Bank Account Whitelisting

Whitelisting is used to make future transactions more efficient. Once a bank account has been validated, it is approved for use with a specific VA in both directions. For example, an account used to deposit funds into a VA can later be used for withdrawals without delay. This convenience, however, only applies one-to-one. If a customer opens a new VA, even when transacting with the same external bank account, that account will need to pass through the 24-hour review again. This precaution helps prevent abuse, such as using multiple accounts to disguise the movement of funds.

🚫 Bank Account Blacklisting

At the other end of the spectrum, blacklisting is applied when a bank account is deemed too risky to interact with. Unlike whitelisting, which applies to a single VA, blacklisting is enforced system-wide. Once blacklisted, no payment - deposit or withdrawal - can be made to or from that account. Any attempt will result in immediate rejection and refund. Moreover, VAs linked to blacklisted accounts are suspended until reviewed by our compliance team.