AUSTRAC Updates Tip-Off Policies to Enhance Operator Accountability

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has revealed substantial policy changes regarding the criminal offense of “tipping off” as it seeks to enhance industry-wide anti-money laundering and counter-terrorism financing (AML/CTF) practices. The changes, coming into effect on 31 March 2025, are designed to deter criminals from concealing their illegal activities.

The Updates Are Especially Relevant for the Gambling Sector

Under the new regulations, disclosing specific information to another person will be a criminal offense if it could reasonably be expected to influence an investigation. Potential harms from such disclosures could include alerting individuals involved in criminal activity, informing associates of those individuals, or publicly releasing sensitive information that could impede law enforcement efforts.

The offense carries a maximum penalty of approximately AUD 39,000 ($24,580) or a two-year jail term, highlighting the seriousness of non-compliance. AUSTRAC CEO Brendan Thomas noted that these updates continue the broader AML/CTF reforms enacted in late 2024, which aimed to modernize and simplify the existing legislation.

The previous legislation was almost 20 years old, and a lot has changed in that time.

Brendan Thomas, AUSTRAC CEO

Thomas emphasized that the changes seek to balance intelligence gathering and operational practicality, ensuring businesses can continue contributing to the fight against financial crimes without compromising law enforcement investigations. He added that companies must collaborate with AUSTRAC without tipping off criminals who can hide or attempt to obscure their illegal activities.

AUSTRAC Urges for Closer Collaboration

The updated tipping-off offense applies to all entities covered by the AML/CTF legislation, such as banks, casinos, remittance providers, and money lenders. These institutions are now prohibited from disclosing specific information to third parties unless permitted by law. However, AUSTRAC recognizes the benefit of internal cooperation among businesses in combating financial crimes.

We need businesses to work with us to detect illicit transactions. Effective information sharing helps stop money laundering.

Brendan Thomas, AUSTRAC CEO

Although the amendments related to tipping-off will take effect immediately, most other obligations under the amended AML/CTF Act will not be enforced until 2026. This longer timeframe should give businesses sufficient time to ensure compliance with AUSTRAC’s regulatory framework. According to Thomas, technological advancements had fundamentally transformed the financial sector, necessitating the updated regulations.

AUSTRAC itself is undergoing internal changes to enhance risk transparency and establish stronger relationships with the industries it regulates. Thomas reaffirmed that businesses failing to comply with the updated tipping-off laws will face strict enforcement actions. As more companies fall under the scope of AUSTRAC, collaboration between regulators and the industry remains critical in safeguarding Australia’s financial system.