Section 172A gives AUSTRAC the power to examine your AML/CTF compliance. Here's what it means in practice and how to prepare.
What is Section 172A?
Section 172A of the AML/CTF Act gives AUSTRAC the power to:
- Request records and documents
- Interview staff members
- Enter your premises (with notice)
- Examine your AML/CTF program and practices
When Does AUSTRAC Use These Powers?
Routine compliance reviews: Random audits to check industry compliance.
Risk-based examinations: If you operate in high-risk sectors or handle large transactions.
Complaint investigations: If someone reports suspected non-compliance.
What AUSTRAC Will Ask For
- Your written AML/CTF program
- CDD records for recent clients
- Risk assessment documentation
- Training records for staff
- SMR filing history (if applicable)
How to Prepare
- Keep good records: CDD reports, transaction logs, training certificates
- Store everything for 7 years minimum
- Have your program written down (use FreeAML's generator if needed)
- Train staff regularly and keep proof
- Respond promptly if AUSTRAC contacts you
Good news
AUSTRAC works cooperatively with most businesses. If they find issues, you'll usually get guidance and time to fix them before any penalties.