A major shift in Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws has come into effect today, altering how businesses and individuals must handle sensitive information related to law enforcement investigations.
Under the updated legislation, entities bound by the “tipping off” offence must now assess whether a disclosure could reasonably be expected to prejudice an investigation, rather than adhering to more rigid and broad restrictions. The revised offence carries serious consequences: penalties of up to $39,000 or a two-year prison term.
AUSTRAC Chief Executive Officer Brendan Thomas welcomed the reform, which is part of a broader legislative overhaul passed in late 2024 aimed at modernising the nearly two-decade-old AML/CTF framework.
“The previous legislation was almost 20 years old and a lot has changed in that time,” Mr Thomas said. “AUSTRAC is about to usher in 100,000 new businesses to the regime next year, and they too will be subject to the tipping off offence.”
The revised approach to the offence places a clear emphasis on preventing actual harm from disclosures, rather than prohibiting them in a blanket fashion. The change is intended to balance the need for intelligence gathering with practical enforcement and operational realities.
“We need businesses to work with us to detect illicit transactions – tipping off risks criminals getting a heads-up,” said Mr Thomas. “Criminals can then take action to hide or disguise their illegal activities. However, we know that effective information sharing within and between businesses helps stop money laundering.”
Entities already under the AML/CTF Act—including banks, casinos, money remitters, and lenders—must now avoid disclosures that could compromise investigations. However, the law explicitly allows information-sharing that does not pose such risks, encouraging greater collaboration across industry without undermining law enforcement efforts.
Mr Thomas noted that the new focus on harm strikes a better balance. “This approach protects investigations while enabling businesses to work together to combat money laundering, terrorism financing, and other serious financial crimes,” he said.
While the tipping off provisions are now active, the full scope of the amended AML/CTF obligations will not be implemented until 2026. At that point, AUSTRAC’s regulatory net will expand to include businesses in the real estate sector, accounting services, dealers in precious stones and metals, and digital asset providers.
The reforms come as Australia continues to align its financial crime framework with international standards and seeks to modernise its approach to emerging threats and growing industries.
By FCCT Editorial Team
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