What the Act allows
- Civil penalties for failing to enrol, operating without a program, failing to carry out due diligence or failing to report; maximums in the tens of millions for a company.
- Enforceable undertakings, remedial directions and infringement notices for lesser or first breaches.
- Criminal offences for tipping off.
What has happened so far
AUSTRAC's headline actions have been against large institutions, such as the AU$1.3 billion penalty against Westpac in 2020 and AU$450 million against Crown Resorts in 2023, for systemic failures over years.
What small agencies should expect
AUSTRAC has said its approach to Tranche 2 will start with education. The realistic risk for an agency is a compliance review that finds no program, no identification and no records, a remedial direction, and the reputational cost with vendors and the licensing regulator. Agencies with a program, dated client files and an audit trail have a very different conversation.
Questions people ask
- Can the licensee be personally liable?
- Yes. Individuals, including principals and the compliance officer, can face civil penalties and, for tipping off, criminal liability.
This guide is general information for real estate agents, buyers agents, property managers, not legal advice. Check AUSTRAC's current guidance for your situation.