The Australian Transaction Reports and Analysis Centre (AUSTRAC) has published guidance on how it will use its new compulsory examination powers, setting expectations for businesses and individuals on when the powers will be applied and what to expect. AUSTRAC emphasises that compulsory examinations are not routine or punitive, and are intended to clarify information and understand how reporting entities manage money laundering risks to support informed regulatory decisions. The powers, introduced in 2025 through the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024, allow AUSTRAC to issue section 172A notices requiring a person to attend an examination, answer questions and provide documents. The guidance explains what information a notice will contain, how an examination will run, the role of the examiner, how legal representatives may assist, and how information provided will be handled, including witness welfare measures such as access to legal representation and the ability to discuss the notice with a health professional. AUSTRAC also clarifies that receiving a section 172A notice does not necessarily indicate it believes a person has broken the law; the guidance is available on the AUSTRAC website.
Australian Transaction Reports and Analysis Centre (AUSTRAC) 2026-03-05
Australian Transaction Reports and Analysis Centre issues guidance on using new section 172A compulsory examination powers
AUSTRAC has issued guidance on its new compulsory examination powers under the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024. Effective from 2025, these powers allow AUSTRAC to issue section 172A notices for examinations to clarify information and assess money laundering risk management. The guidance outlines examination procedures, legal assistance, and emphasizes that these examinations are not punitive.