Consequences of Non-Compliance
What Happens If You Don't Comply?
The Tranche Two deadline is just days away, and if you’re not across your AML/CTF obligations yet, here is what’s at stake.
AUSTRAC has two main tools when a business falls short: enforcement actions and written notices.
They have been upfront about their approach, and they’re not expecting perfection from day one.
But as they put it on LinkedIn: "We do expect businesses to take reasonable steps to understand and manage their AML/CTF risks."
Not meeting AUSTRAC’s requirements can have serious consequences, damaging both a company's reputation and its financial position.
Enforcement Actions
These are formal legal steps AUSTRAC can take against businesses that are not meeting their obligations.
They include seeking civil penalty orders, issuing infringement notices, accepting enforceable undertakings, and issuing remedial directions.
Civil Penalty Orders
If AUSTRAC believes you have breached your AML/CTF obligations, it can apply to the Federal Court for a civil penalty order.
The court can then direct you to pay a penalty to the Commonwealth, up to 100,000 penalty units for a body corporate or up to 20,000 penalty units for an individual or persons other than a body corporate.
As of 7 November 2024, one penalty unit is worth $330. That puts the maximum exposure at $33 million for a body corporate and $6.6 million for an individual.
Civil Penalties can be made public, and current proceedings include:
The Star Pty Limited and The Star Entertainment QLD Limited
Mount Pritchard and District Community Club (Mounties)
Plus more.
Enforceable Undertakings
This is a written commitment to the AUSTRAC CEO, a formal promise that you will (or will not) take specific actions to ensure you are completing your AML obligations.
If AUSTRAC believes you have broken that commitment, they can take you to federal court to enforce it.
In 2025, a public enforceable undertaking was made against Cryptolink.
Infringement Notices
These are issued when a business fails to meet specific obligations under the AML/CTF Act. They can be made public. In 2025, three have already been issued:
Cryptolink, $56,340. Cointree, $75,120. Revolut, $187,800.
Infringement notices can be issued for failing to appoint and notify AUSTRAC of a compliance officer, not documenting or following your AML/CTF program, gaps in customer due diligence, failing to report to AUSTRAC, or not enrolling or registering at all.
Remedial Directions
A remedial direction is AUSTRAC telling you directly that your business is in breach of the AML Act.
You will need to fix the breach, make sure it does not happen again, and submit any overdue reports.
Non-compliance is not just a fine. It is public notices, court proceedings, and mandated external reviews.
If you are still working through your obligations, learn more on AUSTRAC's website, or talk to the Personr team about getting everything in order before the deadline.
