AUSTRAC Introduces New Criminal Penalties for Tipping Off
LISTEN TO THIS ARTICLE:The Australian Transaction Reports and Analysis Centre (AUSTRAC) has announced reforms to its approach to “tipping off,” a criminal offense under anti-money laundering and counter-terrorism financing (AML/CTF) laws.
The changes, effective from March 31, 2025, are designed to strengthen protections against financial crime by preventing unlawful disclosures that may compromise investigations.
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Gambling Industry Among Key Sectors Affected
Under the revised rules, it will become a criminal offense to share certain types of information with others if doing so could reasonably be seen as potentially impacting an investigation. This is because these disclosures might alert suspects, inform their associates, or release sensitive details publicly, any of which could hinder law enforcement efforts.
Violations of the new tipping-off rules carry severe consequences, including fines up to AUD 39,000 or imprisonment for up to two years.
AUSTRAC CEO Brendan Thomas said that these changes are part of broader AML/CTF legislative reforms introduced in late 2024, which aim to modernize Australia’s nearly two-decade-old framework. He said that, “The previous legislation was almost 20 years old, and a lot has changed in that time.”
Thomas emphasized that the updated rules are designed to balance the need for effective intelligence gathering with practical considerations for businesses. He stressed the importance of industry cooperation with AUSTRAC, while cautioning against inadvertently alerting criminals who may use the information to conceal illicit activity.
AUSTRAC Encourages Better Industry Collaboration
The updated tipping-off offense will apply across all sectors covered by the AML/CTF regime, including banks, casinos, remittance services, and money lenders. They will be restricted from sharing specific information externally unless legally permitted to do so. Still, AUSTRAC acknowledges the value of internal collaboration within organizations to support detection and prevention efforts.
We need businesses to work with us to detect illicit transactions. Effective information sharing helps stop money laundering.
Although the tipping-off provisions will take effect immediately, other changes introduced under the amended AML/CTF Act will be phased in gradually, with most not enforced until 2026. This staggered timeline is intended to provide organizations with adequate time to align their operations with the new legal requirements.
Thomas noted that rapid technological shifts in the financial industry have made these regulatory updates necessary. In tandem, AUSTRAC is also evolving internally and focusing on increased transparency, risk-based regulation, and closer partnerships with the industries it oversees.
He warned that any business found breaching the tipping-off laws will face firm enforcement measures.
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