Table of Contents
Quick Guide: Tipping Off in Practice
- Meaning: From 31 March 2025 it is a criminal offence to disclose certain protected information to another person where it would or could reasonably be expected to prejudice an investigation.
- Why tranche 2 must care: Any business preparing or submitting SMRs must prevent accidental disclosures to clients, referrers, and counterparties.
- Key legal reference: AML and CTF Act section 123.
Definition & Practical Meaning of Tipping-Off
AUSTRAC guidance states that from 31 March 2025, tipping off is a criminal offence where a disclosure of certain protected information would or could reasonably be expected to prejudice an investigation.
Examples of Risky Disclosures
- Telling a client you have submitted, or will submit, an SMR about them
- Sending internal suspicion notes to external parties in a way that can reach the subject of a report.
- Including wording in engagement emails that signals law enforcement interest.
Best Practices to Prevent Tipping-Off
- Use need to know access for SMR and suspicion information.
- Train staff on safe communications, including how to pause a matter without revealing the reason.
- Prepare scripts for client facing teams that explain delays or additional checks without referencing suspicion.
Common Challenges in Tipping Off
- Over sharing within the firm and with external referrers.
- Staff attempting to be transparent with clients and inadvertently signalling suspicion.
- Weak document control, where draft SMRs and investigation notices are stored in shared folders.
Need to Remember About Tipping Off
Tipping off is one of the easiest compliance failures for new entrants, because it comes from good intentions. A simple control framework and staff training prevents costly mistakes.
“Bookmakers sit at a natural convergence point for cash, speed and anonymity. AUSTRAC’s focus reflects the reality that wagering platforms can be misused as value transfer mechanisms if risk controls are not actively applied.”
Common FAQs About Tipping Off
Is every disclosure prohibited?
The offence focuses on disclosures where it would or could reasonably be expected to prejudice an investigation.
