Tipping off: AUSTRAC’s updated guidance and what it means for your AML process

Tipping off is a criminal offence under section 123 of Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006. It happens when a business or its staff disclose information about a suspicious matter report (SMR) or an AUSTRAC notice in a way that would or could reasonably be expected to prejudice an investigation. The maximum penalty is two years’ imprisonment, 120 penalty units, or both. AUSTRAC updated its guidance on 2 October 2026 to clarify what real estate agents, lawyers, conveyancers and accountants can safely share.

What’s the short version?

You can still ask clients for more information, work with your AML compliance provider and help people affected by scams. What you can’t do is reveal, directly or by implication, that you suspect someone or have reported them to AUSTRAC. Give neutral reasons, share only with people who need to know, and train your team.

What is tipping off?

Tipping off means sharing protected information in a way that could harm an investigation, whether an investigation has started yet or might start in the future. You don’t have to intend harm. What matters is whether the disclosure would or could reasonably be expected to prejudice an investigation.

Protected information includes:

• That you have submitted an SMR, or need to
• The contents of an SMR, or any copy of one
• That you have received, or responded to, an AUSTRAC notice under section 49 or 49B of the Act

The offence applies to reporting entities and to their officers, employees and agents. It applies whether someone creates, shares or simply receives the information. A receptionist who overhears a conversation can tip someone off just as easily as the principal who lodged the report.

Why is it important to follow AUSTRAC’s tipping off guidance?

A warning, even an accidental one, gives a suspect time to change their behaviour, move funds or disappear. AUSTRAC’s own guidance gives the example of an untrained employee who overheard staff discussing a customer’s behaviour and told the customer, who then stopped visiting and moved interstate.

For real estate agents, lawyers, conveyancers and accountants, the risk is real. Transactions involve many parties, client relationships are often personal, and offices tend to be small. One offhand comment to a client, or to the other side of a deal, can be enough.

Following the guidance protects investigations, protects your business from criminal penalties and gives your team confidence about what they can and can’t say.

What has AUSTRAC updated in its tipping off guidance?

AUSTRAC’s updated guidance clarifies three things: sharing information with third parties, helping scam victims, and what you can tell a client.

Can you share information with third party providers?

Yes. You can share information with external providers that support your AML/CTF obligations, such as AML compliance providers, consultants and lawyers. The condition is that the disclosure would not, or could not reasonably be expected to, prejudice an investigation.

AUSTRAC expects you to:

• Share only with people who have a genuine need to know
• Use confidentiality agreements where appropriate
• Attach conditions on how the information can be used further
• Check that your provider has its own tipping off controls, because the offence may not apply to them
• For providers based overseas, consider whether local laws create a risk of the information reaching the person you reported

AUSTRAC is also clear that the tipping off offence doesn’tauthorise these disclosures. Other laws, including the Privacy Act 1988, still apply.

Sharing information with Australian law enforcement and regulatory agencies, such as the police, the Australian Taxation Office and the Australian Criminal Intelligence Commission, is generally permitted.

Can you share information with scam victims?

Sometimes. If you submit an SMR about activity that affects someone who isn’t the subject of your suspicion, such as the victim of a scam or identity fraud, you can share information to help them resolve the issue or recover their losses. That is allowed as long as:

• The disclosure would not, or could not reasonably be expected to, prejudice an investigation
• It is shared only with people who have a genuine need to know
• It is limited to what is necessary to help them

What can you tell a client?

Asking a client for more information is not tipping off on its own. The key is to give genuine reasons that don’t suggest you’re suspicious of them.

What to avoid saying:

• “Your transaction has been flagged as suspicious.”
• “We may need to report this to AUSTRAC.”
• “We’re ending this because we’re concerned about where your money came from.”
  
  

What do the updates mean for your business?

The updated guidance gives businesses more clarity, not more restrictions. In practice, it means:

• Review your procedures: Make sure your AML/CTF program includes clear steps to prevent tipping off. AUSTRAC requires this
• Brief your team: Everyone with access to client information needs tipping off training, especially staff who deal with clients directly
• Use standard wording: Templates and short scripts for client requests help staff avoid improvising under pressure
• Keep concerns private: Discuss suspicions only with people who need to know, and never where they could be overheard
• Record what you said: Document every client interaction about suspicious activity, including the reason you gave
• Check your providers: Confirm that the third parties you share information with have their own tipping off controls

Where can you learn more about tipping off?

Tipping off is a serious offence, but avoiding it comes down to a few consistent habits:

• Give clients neutral, genuine reasons when you ask for information or end a relationship
• Share information only with people who need to know
• Make sure everyone on your team knows what they can and can’t say

AUSTRAC’s updated guidance gives your business clear direction on sharing information with providers, supporting scam victims and talking to clients.

To read the full guidance, visit AUSTRAC’s tipping off page. For questions about your specific obligations, contact AUSTRAC directly or speak to your legal adviser.

If you’d like to know how APLYiD supports AML compliance for real estate agents, legal firms, accountants and conveyancers, get in touch with our team.