Question 1

What is AUSTRAC?

Accepted Answer

AUSTRAC (Australian Transaction Reports and Analysis Centre) is Australia's financial intelligence unit and AML/CTF regulator. It collects financial transaction data, produces intelligence for law enforcement, and supervises compliance with the AML/CTF Act 2006.

Question 2

Which industries does AUSTRAC regulate?

Accepted Answer

AUSTRAC regulates any business providing a 'designated service' under section 6 of the AML/CTF Act 2006 — including banks, payment providers, digital currency exchanges, remittance dealers, bullion dealers, and gambling operators. Tranche 2 expands this to lawyers, accountants, and real estate agents from 1 July 2026.

Question 3

What are AUSTRAC's core reporting obligations?

Accepted Answer

AUSTRAC reporting entities must file three types of reports: Suspicious Matter Reports (SMR) for suspicious transactions or customers, Threshold Transaction Reports (TTR) for cash of AUD 10,000 or more, and International Funds Transfer Instructions (IFTI) for cross-border transfers.

Question 4

What is AUSTRAC's enforcement approach and what penalties apply?

Accepted Answer

AUSTRAC's civil penalty regime allows fines of up to AUD 18 million per contravention for individuals, and significantly higher for bodies corporate. AUSTRAC has secured penalties exceeding AUD 1.3 billion against financial institutions, signalling an active enforcement posture.

Question 5

What is AUSTRAC Tranche 2 and who does it affect?

Accepted Answer

AUSTRAC Tranche 2 extends Australia's AML/CTF obligations to lawyers, accountants, real estate agents, trust and company service providers, and conveyancers from 1 July 2026. Affected firms must enrol with AUSTRAC, implement an AML/CTF programme, and establish CDD and reporting processes.

Question 6

Does AUSTRAC endorse or approve AML compliance service providers?

Accepted Answer

AUSTRAC does not endorse, approve, accredit, or recommend any compliance software, consultants, or service providers. Any claim of being 'AUSTRAC approved', 'AUSTRAC endorsed', or 'AUSTRAC accredited' is false. AUSTRAC has published explicit warnings about this type of misleading marketing.

AUSTRAC — Australia's AML/CTF regulator