As part of the AML/CTF reforms significant changes have been made to the “Tipping Off” offence. This changes take place from Monday the 31st of March 2025, and will apply to conveyancers as Tranche 2 reporting entities.
What is Tipping Off?
Tipping Off is the disclosure of information that could be reasonably expected to result in prejudicing an investigation.
The information protected by this offence includes the following:
- Information about suspicious matter reports
- Information about notices given under sections 49 and 49b of the AML/CTF Act.
- Information suspect transaction reports
It is does not matter whether or not there is an ongoing investigation, or whether if you are aware of said investigation; any disclosure that could potentially affect a current or future investigation will be classified as Tipping Off.
In general, the release of information will be considered a Tipping Off offence if it can be reasonably expected that information will become known to:
- The individual in question
- The individual’s associates
- The general public
What are the Changes?
The original Tipping Off offence was a near total prohibition on reporting entities sharing that had or were required to submit Suspicious Matter Report. Under the new wording it is only is only an offence to share information if it can be reasonably expected to reach one of the categories outlined above.
The new wording is more permissive in sharing information, allowing reporting entities to collaborate and more effectively monitor suspicious activities without jeopardising law enforcement investigations.
For full details refer to AUSTRAC’s page on the new tipping off offence.
Implications for Conveyancers
While the changes to the Tipping Off offence took effect on 31 March 2025 for current reporting entities, conveyancers, as part of the Tranche 2 reforms, will have AML/CTF obligations commencing from 1 July 2026. This includes adherence to the Tipping Off provisions.
In preparation for these obligations, conveyancers should:
- Stay Informed: Subscribe to AUSTRAC’s official communications to remain updated on AML/CTF requirements and timelines.
- Develop Internal Policies: Begin formulating internal policies and procedures to prevent unauthorized disclosures and ensure compliance once obligations commence.
- Seek Professional Advice: Engage with legal or compliance experts to understand the full scope of upcoming obligations and to establish robust compliance frameworks.
For further information, refer to AUSTRAC’s official guidance on Tipping Off.
By proactively preparing for these changes, conveyancers can ensure they are well-equipped to meet their obligations and avoid penalties associated with unauthorized disclosures.