The Australian Transaction Reports and Analysis Centre said banks have tightened controls on customers exposed to Australia’s illicit tobacco trade after a late 2025 warning issued with the Illicit Tobacco and E-Cigarette Commissioner. Banks were asked to strengthen monitoring and reporting under existing AML/CTF obligations, particularly around tobacco retailers and convenience stores using cash, private ATMs and EFTPOS terminals to move and disguise illicit tobacco proceeds. Alongside the November correspondence, AUSTRAC gave banks a dedicated reference code for suspicious matter reports. Since that correspondence, it has received 337 reports using the code and made 76 referrals to partner agencies where illicit tobacco and money laundering were the primary and secondary threat types. Almost 90 per cent of banks and authorised deposit-taking institutions responded to the request. Around 20 per cent of reporting entities exited high-risk customers with illicit tobacco exposure, while others introduced enhanced controls and monitoring, contributing to more than 1,000 customers being exited or recommended for exit. AUSTRAC said it will continue working with banks, the ITEC Commissioner, customs and law enforcement partners to identify, report and act on illicit tobacco-linked financial activity while avoiding unnecessary disruption to legitimate businesses and communities. It added that proposed reforms to expand information sharing across the financial system could further improve banks’ ability to identify and avoid high-risk customers.
Australian Transaction Reports and Analysis Centre (AUSTRAC)2026-04-02
Australian Transaction Reports and Analysis Centre details bank response to illicit tobacco warning with 337 suspicious reports and over 1,000 customer exits
The Australian Transaction Reports and Analysis Centre reported that banks tightened controls on customers linked to Australia’s illicit tobacco trade after a late 2025 warning with the Illicit Tobacco and E-Cigarette Commissioner, including strengthened monitoring and reporting under anti-money laundering and counter-terrorism financing obligations. AUSTRAC received 337 suspicious matter reports using a dedicated reference code, made 76 referrals to partner agencies, and noted that almost 90 per cent of banks and authorised deposit-taking institutions responded, with around 20 per cent exiting high-risk customers and more than 1,000 customers exited or recommended for exit.