Effectiveness Testing
Schedule and conduct compliance effectiveness tests using pre-built templates, auto-extracted metrics, and annual management reporting.
AUSTRAC requires reporting entities to regularly assess whether their AML/CTF controls are actually working. Verifia's Effectiveness Testing module helps you plan, conduct, and report on these tests — with system metrics automatically extracted to save time.
Why Effectiveness Testing Matters
Having an AML/CTF Program is not enough — you need to demonstrate that your controls are effective. Effectiveness testing answers questions like:
- Are suspicious matters being identified and reported on time?
- Are threshold transactions being detected and reported within deadlines?
- Is customer due diligence being completed to the required standard?
- Are staff adequately trained and following procedures?
Test results feed into your annual compliance reporting and help identify areas for improvement.
Pre-Built Test Templates
Verifia provides templates for the key control areas, available under Review > Effectiveness Testing:
| Test Template | What It Assesses |
|---|---|
| SMR Effectiveness | Are suspicious matters being identified and reported? Are reports filed within time limits? |
| TTR Effectiveness | Are threshold transactions detected and reported within 10 business days? |
| Compliance Officer Effectiveness | Is the Compliance Officer fulfilling their oversight responsibilities? |
| Client Onboarding Effectiveness | Is CDD being performed correctly and consistently for all customers? |
| Enhanced CDD Effectiveness | Are high-risk customers receiving appropriate enhanced due diligence? |
| CBM Effectiveness | Are cross-border movement reports being filed when required? (Accounting and legal only) |
What Each Test Includes
Every test template guides you through a structured assessment:
- Test scope — define the period and sample being assessed
- Sampling method — select how cases were chosen for review (random, risk-based, or complete)
- Test method — describe how the assessment was conducted
- Findings — document what was found, including any deficiencies
- Recommendations — record actions to address any issues identified
Automatic Metric Extraction
Verifia automatically pulls relevant data from your system to support each test:
- SMR timeliness — average time from suspicion formed to report submission
- TTR completion rate — percentage of threshold transactions reported within the 10-business-day deadline
- CDD completion rate — percentage of customers with completed KYC before service delivery
- ECDD approval rate — percentage of high-risk customers with senior management sign-off
- Training compliance — percentage of staff with current training certifications
These metrics are pre-populated in the test form, so you can focus on analysis rather than data gathering.
Annual Summary
The Annual Summary view aggregates all effectiveness tests conducted during the reporting period:
- Results across all test types
- Trends compared to previous periods
- Outstanding recommendations and their resolution status
- Overall compliance control health assessment
From this summary, Verifia can generate a Management Annual Report — a structured document suitable for presentation to senior management or your board, summarising the state of your AML/CTF controls.
Test Scheduling
You can configure how often each test type should be conducted:
| Frequency | Typical use |
|---|---|
| Quarterly | High-risk areas or where previous issues were found |
| Semi-annual | Standard controls with moderate risk |
| Annual | Low-risk controls or where prior tests showed strong results |
Verifia sends reminders before each test is due and tracks overdue tests. Test completion status is factored into your Compliance Health Score on the dashboard.
Getting Started
- Navigate to Review > Effectiveness Testing
- Select a test template
- Define the test scope and period
- Review the auto-extracted metrics
- Document your findings and recommendations
- Save — the test is automatically archived in the Compliance Vault
For information on how effectiveness testing fits into your broader compliance maintenance cycle, see Three-Step Framework.