AUSTRAC has published guidance on its new compulsory examination powers, setting clear expectations for businesses and individuals about when and how the powers will be applied.
The new section 172A powers were introduced in 2025 with the passing of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (AML/CTF Amendment Act).
Section 172A notices require a person to attend an examination, answer questions and provide documents.
AUSTRAC CEO Brendan Thomas said the guidance reflects the agency's approach to exercising its powers carefully and responsibly.
"The guidance is designed to ensure the community understands the scope of the power and the approach AUSTRAC will take to its use," Mr Thomas said.
"This power and the suite of reforms that went with it, give AUSTRAC better tools to understand money laundering risks and how businesses are managing those risks which can ultimately disrupt serious and organised crime.
"The guidance makes it clear that compulsory examinations are not routine or punitive.
"They are used where necessary to understand how businesses handling money laundering risks, clarify information or engage with a reporting entity."
Australia's AML/CTF reforms are aimed at making it harder for criminals to launder money through the legitimate economy. The Australian Institute of Criminology estimates serious and organised crime generates around $38 billion each year, all of which must be laundered to be useful.
The Anti‑Money Laundering and Counter‑Terrorism Financing Amendment Act 2024 strengthens AUSTRAC's ability to detect and disrupt this activity by expanding its information‑gathering powers.
The new guidance explains what information is included in a section 172A notice, what happens during an examination, the role of the examiner, how legal representatives may assist, and how information provided is handled.
In designing our approach we've considered witness welfare.
In particular, we've made it clear witnesses are entitled to legal representation, and they may speak about the notice with a health professional.
Importantly, receiving a section 172A notice does not necessarily mean AUSTRAC believes a person has broken the law.
"In many cases, an examination is simply a way to understand what has happened."
"The focus is on gathering accurate information so we can make informed regulatory decisions, identify where risk may lay across the financial landscape and target criminal misuse of the system, not on making assumptions about wrongdoing.
"By being clear about how we use these powers, we support legitimate businesses and individuals while strengthening our ability to stop criminal money flowing through the economy."
The guidance is available on the AUSTRAC website.
