Australia updates anti-money laundering laws to overhaul tipping off offences
From 31 March 2025, businesses and individuals under Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime will face new obligations under a revised “tipping off” offence.
This change looks to shift the focus from blanket restrictions to whether a disclosure could reasonably be expected to harm an investigation.
The offence, which carries penalties of up to two years in prison or fines around AUD $39,000, now applies only when a disclosure about suspicious activity — such as a submitted suspicious matter report (SMR) — could potentially tip off a suspect or interfere with an investigation.
The update forms part of a broader reform package aimed at modernising the country’s AML/CTF laws, some of which date back nearly two decades.
AUSTRAC CEO Brendan Thomas said the update is designed to strike a better balance between security and operational transparency.
“We’re about to bring 100,000 new businesses under the regime next year, and they’ll be subject to these offences as well,” Thomas noted.
He added that while businesses are essential in helping identify and report illicit activity, premature disclosure of that reporting can have serious consequences. “Tipping off risks giving criminals a heads-up. They could move money, delete records, or otherwise cover their tracks.”
Previously, reporting entities were broadly prohibited from disclosing that they had submitted or were required to submit an SMR, or any information from which such a report could be inferred.
Under the new rules, this prohibition only applies when there is a real chance that such a disclosure could hinder an active or potential investigation.
Examples of SMR-related information now protected include details about the report itself, related notices under sections 49 or 49B of the AML/CTF Act, and suspicious transaction reports under the repealed Financial Transaction Reports Act 1988.
The change gives industry more flexibility to communicate and collaborate internally while still maintaining the integrity of law enforcement efforts.
Businesses will, however, need to assess whether any disclosure could realistically impact an investigation — regardless of whether they know one is underway.
AUSTRAC has published updated guidance to help organisations understand the new provisions and apply them properly so there can be no confusion.
While the tipping off changes take effect immediately, most other parts of the AML/CTF reforms — including those covering digital assets, real estate, and precious metal dealers — won’t actually come into force until 2026.
Those with AML/CTF obligations should read the updated legislation and consult AUSTRAC’s resources to ensure full compliance under the new legal framework.
The post Australia updates anti-money laundering laws to overhaul tipping off offences appeared first on ReadWrite.