2 Years Prison
Maximum imprisonment for tipping off offence.
Offences
Tipping Off. Know the Criminal Offence
What is tipping off? Learn about the criminal offence of disclosing SMR information. Penalties include up to 2 years imprisonment.
What is tipping off?
Tipping off is a criminal offence under section 123 of the AML/CTF Act. It occurs when you disclose information about an SMR or that you've formed a suspicion, where the disclosure could prejudice an investigation.
According to AUSTRAC, the offence protects customer privacy, maintains confidentiality of SMR submitters, and ensures law enforcement investigations are not compromised.
Tipping off penalties
120 Penalty Units
Maximum fine (approx $37,560 at current rates).
Criminal Offence
Tipping off is a criminal offence under the AML/CTF Act.
Frequently asked questions
What is tipping off?
Tipping off is disclosing information about a suspicious matter report (SMR) or that you have formed a suspicion about a customer, where it could prejudice an investigation.
Why is tipping off prohibited?
To protect the reputation of customers (who may be innocent), ensure confidentiality of SMR submitters, and prevent criminals from being alerted to investigations.
Is asking customers questions tipping off?
No. Conducting reasonable inquiries and enhanced due diligence is not considered tipping off. You can ask about identity, source of funds, and transaction purposes.
Related resources
Stay compliant with ARCaml
Proper CDD processes help you identify suspicious activity while avoiding tipping off.