AML/CTF enforcement letters signal a more proactive AUSTRAC

Speaking with Accounting Times, Grant Thornton partner Neil Jeans told the brand about AUSTRAC’s latest information requests.

A formal letter that asks a host of questions and requests documentation, the information requests have been sent to companies in selected sectors such as gaming and payments.

“[It is a] formal letter that is primarily inquiring about their progress in relation to the reforms, and additionally asking and requesting [for the company] to provide certain key documentation that would have been generated as a result of the reforms,” Jeans said.

The letter includes a questionnaire about the company’s progress against implementation plans.

Jeans noted that if you are unable to provide the requested documentation to AUSTRAC, it warns it will issue a section 167 notice – a notice to produce under legislation.

“This indicates that AUSTRAC is taking this very seriously – they are keen to get this information, and they're not afraid to use the regulatory tools they have to obtain this information.”

A first for letters

Jeans noted that this is the first time that AUSTRAC has issued these information requests. He noted that previously, AUSTRAC would do thematic or industry sector focuses.

“This appears to be a very broad brush to really understand how the industry has adopted the reforms that came in March 2026.

“They may be collecting intelligence that they can present to the Financial Action Task Force on the success of the reforms, and the success of the adoption of the reforms.

“The collection of this information provides AUSTRAC with an interesting data point where they can compare similar organisations or organisations in similar industries to see whether there are any outliers or in terms of their progress in relation to the reforms.”

Jeans said that this move is much more proactive of AUSTRAC.

“[This] is a signal of the stance that this regime under Brendan Thomas, they're far more inquisitive; they trust, but they verify.”