The Australian Prudential Regulation Authority gave a presentation to the Basel Committee on Banking Supervision in October 2001 titled Money laundering, a risk management issue. It said supervisors globally were increasingly recognising the importance of banks putting in place controls and procedures to ensure they knew their customers.

It went on to say "sound KYC [know your customers] procedures must be seen as a critical element in the effective management of banking risks". Without proper due diligence, it warned that banks could become subject to reputational, operational, legal and concentration risks, which could result in significant financial cost.