APRA/ASIC Compliance Brief
How Trutina's AI-powered fraud detection aligns with key APRA and ASIC prudential standards for Australian lenders.
Purpose
This brief demonstrates how Trutina's AI-powered fraud detection system aligns with key APRA and ASIC prudential standards relevant to mortgage lending and operational risk management.
APRA CPS 220 — Risk Management
Requirement
ADIs must maintain a risk management framework that identifies, measures, monitors, and manages material risks.
How Trutina helps
- Automated fraud risk detection across 100% of applications (vs manual sampling)
- Quantified risk scoring (0–100) provides measurable risk metrics
- Continuous broker risk profiling identifies systemic risks
- Audit trail documents all risk assessments for prudential review
- Dashboard provides real-time portfolio risk visibility
APRA CPS 234 — Information Security
Requirement
ADIs must maintain information security capabilities commensurate with threats.
How Trutina helps
- Detects AI-generated documents — a new and rapidly evolving threat vector
- PDF forensics identifies document manipulation (metadata, font, timestamp analysis)
- Cross-references against authoritative data sources (ABN Register, BSB Directory)
- All data encrypted in transit (TLS 1.3) and at rest (AES-256)
- Australian data sovereignty — all processing in Australia
- See Security & Privacy Whitepaper for full details
APRA CPG 235 — Managing Data Risk
Requirement
Sound data risk management practices including data quality and integrity.
How Trutina helps
- Validates document data against external authoritative sources
- Consistency checks ensure internal data integrity (math verification)
- Flags discrepancies between documents (payslip income vs bank statement credits)
- Structured data extraction with confidence scoring
ASIC RG 209 — Responsible Lending Conduct
Requirement
Licensees must make reasonable inquiries about a borrower's financial situation and verify information.
How Trutina helps
- Automated verification of income documentation (payslips, bank statements)
- Cross-references employer ABN against Australian Business Register
- Validates salary against ABS occupational benchmarks
- Detects forged or AI-generated evidence of financial capacity
- Provides documented verification trail for regulatory audit
ASIC Report 780 — Mortgage Fraud (2024)
Context
ASIC highlighted growing use of technology in mortgage fraud, particularly fabricated income documents.
How Trutina responds
- Purpose-built to address the exact threat ASIC identified
- AI content detection specifically trained to identify AI-generated financial documents
- Broker risk profiling addresses ASIC's concern about fraud networks operating through broker channels
- Comprehensive audit trail supports ASIC enforcement investigations
Explainability Requirement
Why it matters
APRA and ASIC both require that automated decision-making be explainable and auditable.
How Trutina delivers
- Every risk score accompanied by plain-English narrative
- Each fraud flag includes: category (which module detected it), specific evidence (exact values, comparisons, sources), severity rating with rationale, and weight contribution to overall score
- Reports designed for inclusion in credit assessment documentation
- No “black box” — every score component is traceable
- Suitable for presentation to regulators, auditors, and customers
Record Keeping
- Risk scores and flags retained for 7 years (APRA requirement)
- Immutable audit log of all actions (who, what, when)
- Full document analysis history available for regulatory review
- Export capability for APRA/ASIC information requests
Regulatory Mapping Summary
| Standard | Requirement | Trutina Feature |
|---|---|---|
| CPS 220 | Risk management framework | Automated risk scoring, broker profiling |
| CPS 234 | Information security | Encryption, Aus data sovereignty, threat detection |
| CPG 235 | Data risk management | Cross-reference verification, data validation |
| RG 209 | Responsible lending | Income verification, document authenticity |
| Privacy Act 1988 | Data protection | DPA available, data minimisation, right to erasure |
Conclusion
Trutina provides Australian lenders with a purpose-built fraud detection capability that directly addresses the AI-generated document fraud threat while maintaining full alignment with APRA and ASIC prudential requirements. The system's emphasis on explainability ensures that automated risk assessments can be reviewed, audited, and presented to regulators with confidence.