The Australian Transaction Reports and Analysis Centre (AUSTRAC) has announced an important update to its policies concerning anti-money laundering and counter-terrorism financing (AML/CTF). These changes, set to take effect on 31 March 2025, focus on strengthening laws related to the criminal offence of “tipping off.” The primary goal is to deter criminals from concealing illegal activities and improve the overall effectiveness of financial crime prevention.
“Tipping off” is the disclosure of information that may reasonably be expected to affect an investigation. Financial institutions and businesses, under the revised AUSTRAC regulations, need to refrain from disclosing certain information to third parties if it is likely to obstruct law enforcement efforts. The offence is punishable with serious penalties, such as a fine of up to AUD 39,000 (€22,710) or a two-year prison sentence.
The revised law prescribes more severe penalties for entities and individuals who contravene tipping-off provisions. By raising monetary and legal penalties, AUSTRAC will seek to achieve improved compliance levels across different industries. While the tipping-off offence will be enforced immediately, other AML/CTF amendments will take effect in 2026, providing businesses with time to adapt to the new framework.
AUSTRAC CEO Mr Brendan Thomas emphasised that the change to the offence is about balancing intelligence gathering with practicality to ensure the best outcomes – identifying criminal activity and driving money laundering out of legitimate businesses.
Thomas said, “The change to the offence is about balancing intelligence gathering with practicality to ensure we can all get the best outcome – identifying criminal activity and driving money laundering out of legitimate businesses.”
The gambling industry is a primary target of these reforms, as casinos and betting establishments are frequently exploited for money laundering. AUSTRAC’s new guidelines will require gambling operators to be more vigilant and report suspicious activities while avoiding unauthorised disclosures.
The earlier AML/CTF legislations were almost two decades old. As technology has advanced at lightning speed, criminals have discovered new mechanisms to use financial systems. These new regulations are an adaptation to the contemporary economic scenario and give AUSTRAC more effective resources to counter financial crimes.
Thomas highlighted the transformative impact of these changes, noting that AUSTRAC is preparing to integrate 100,000 new businesses into the regulatory framework next year.
Thomas stated, “The previous legislation was almost 20 years old, and a lot has changed in that time. AUSTRAC is about to usher 100,000 new businesses into the regime next year, and they, too, will be subject to the tipping-off offence.”
While businesses must comply with stricter regulations, AUSTRAC also encourages internal cooperation within organisations. Proper information-sharing within legal limits can help detect and prevent illicit transactions.
Thomas further added, “We want to get businesses on board to identify suspicious transactions – alerting risk criminals getting an early warning. Criminals are then able to take steps to conceal or mask their illegal business. But we know that successful information sharing within and between businesses prevents money laundering.”
Companies that fail to comply with the updated tipping-off laws will face strict enforcement actions. AUSTRAC has made it clear that non-compliance will not be tolerated, reinforcing the importance of adhering to the new regulations.
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