The Role of Training in Mitigating Financial Crime Risks

Between the 2023–2024 financial year, the Australian Transaction Reports and Analysis Centre (AUSTRAC) reported 381,758 suspicious matter reports – a 20% increase from the previous year. This surge is more than just a number; it’s a signal of the growing complexity and reach of financial crime. Behind each report is a business blindsided by fraud, a community impacted by corruption or a vulnerable person exploited by illicit financial networks. Financial crime is no longer hidden in backroom deals – it’s embedded in everyday transactions, global supply chains and digital ecosystems. As criminals grow more sophisticated, businesses must strengthen their defences, starting with education.

From money laundering and fraud to bribery and corruption, these risks not only threaten the integrity of financial systems but also expose organisations to legal penalties, reputational damage and operational disruption. For businesses operating in highly regulated environments, mitigating these risks isn’t just a compliance requirement – it’s a strategic imperative.

One of the most powerful tools organisations have at their disposal is also one of the most often overlooked: training. Comprehensive, ongoing staff education is critical for identifying threats early, building organisational resilience and fostering a culture that prioritises integrity and compliance. In this article, we explore the growing threat of financial crime and how anti-money laundering (AML) and financial crime training can protect your business.

Understanding financial crime risks

Types of financial crime: money laundering, fraud, bribery

Financial crime is constantly evolving, but the most common types include:

• Money laundering: Concealing the origins of illegally obtained money to make it appear legitimate.
• Fraud: Deceptive activities designed to gain financial or personal benefit such as invoice scams or identity theft.
• Bribery and corruption: Offering, giving, receiving or soliciting something of value to influence business decisions.

These crimes not only undermine economic stability and trust in institutions, but also erode internal cultures of integrity. Businesses found to be complicit – even unknowingly – in such crimes can face fines, loss of licences and irreversible damage to their reputation.

Common vulnerabilities in businesses

Financial crime often thrives where there are gaps in knowledge, controls or accountability. Common vulnerabilities include:

• Inadequate training or awareness among employees
• Lack of clear reporting channels or whistleblower protection
• Insufficient due diligence on partners, suppliers or customers
• Poor record-keeping or audit trails
• Inconsistent application of compliance protocols across teams

These weaknesses are not just compliance risks – they are entry points for financial crime. In high-risk sectors like financial services, logistics, mining and construction, regulators are increasing their scrutiny, and businesses that fail to act face mounting consequences.

Why training is a key defence

Awareness and early detection

Training is the frontline defence in any risk mitigation strategy. Well-informed employees are far more likely to notice suspicious activity early and take appropriate action.

• Recognising red flags: Training empowers staff to identify signs of potential misconduct, such as unusual transaction patterns, inconsistent documentation or third-party behaviour that deviates from expected norms.
• Acting on suspicions: Understanding internal procedures, confidentiality protections and the importance of prompt reporting reduces hesitation when concerns arise.

At Safetrac, our anti-money laundering training (AML) modules are designed to ensure that every staff member from junior administrators to senior executives understands their role in detecting and deterring criminal activity. By embedding awareness into your organisational culture, you turn every employee into a line of defence.

Empowering frontline staff

Frontline employees are often the first to spot signs of financial crime – whether it’s a suspicious onboarding request, an unusual payment, or a vendor behaving inconsistently. If they’re not trained to understand what those signs mean, the opportunity to intervene is lost.

Effective training empowers these team members to:

• Recognise red flags in context
• Follow clear reporting procedures
• Take action without fear of reprisal

Safetrac’s AML and financial crime training includes interactive modules built on real-world decision-making scenarios. Training can be customised and delivered either via Scorm or Safetrac’s online learning platform. By engaging staff through relatable, industry-specific examples, our training ensures knowledge is retained and applied when it matters most.

Building a culture of compliance

Leadership buy-in and accountability

A culture of compliance starts at the top. When leadership commits to ethical standards and backs them with action, it sends a powerful message throughout the organisation.

• Executives should undertake the same training as staff, demonstrating shared responsibility.
• Managers should routinely discuss compliance in meetings and performance reviews.
• Breaches must be addressed transparently and fairly to maintain credibility.

By making compliance a visible leadership priority, businesses build trust and signal their long-term commitment to integrity.

Using LMS tools for tracking and reporting

Even the best training program needs structure. Without tracking, it’s impossible to know whether staff are engaging with material, understanding expectations or staying up to date.

A learning management system (LMS) provides a centralised platform to:

• Track course completion rates
• Assess knowledge retention with quizzes or assessments
• Generate reports for audits or internal reviews
• Send automatic reminders for renewals or updates

Safetrac’s ISO-certified compliance platform offers robust tracking and reporting tools that simplify training management. Whether you’re preparing for a regulatory audit or assessing organisational readiness, our platform ensures you have visibility and control over your compliance efforts.

Real-world impact: training in action

Training isn’t theoretical – it prevents real-world harm. Reece Group, Australia’s leading plumbing and bathroom supplies provider, faced the challenge of delivering consistent compliance training across a diverse workforce of over 5,000 employees across 600+ sites. With a mix of office, retail and warehouse teams, Reece needed a solution that was accessible, relevant and scalable.

Partnering with Safetrac, Reece integrated compliance training into its staff development plan—transitioning from self-service online learning to a comprehensive, mandated program. Training was customised to align with Reece’s unique culture and audience, and the rollout was executed across Australia and New Zealand in under four weeks.

The results speak volumes:

• 99% of Australian staff completed their initial training modules
• 95% maintained participation across ongoing training cycles
• Rapid and seamless implementation with minimal operational disruption

This partnership demonstrates how tailored, strategic training initiatives can embed a culture of compliance at scale – driving engagement, accountability and operational resilience across complex organisations.

Empower your team to fight financial crime

The risk of financial crime is growing – but with the right training, your business can stay one step ahead. Anti-money laundering training and broader financial crime education are no longer optional – they are essential components of modern risk management.

Safetrac’s award-winning, fully customisable training solutions help organisations build resilience, protect their reputation and foster a culture of integrity. With local legal expertise, flexible delivery and interactive learning, our training empowers your teams to detect, prevent and respond to risk effectively.

Let’s make compliance simple, effective and empowering.

Explore Safetrac’s AML training solutions or contact us today to learn how we can support your business.