Suspicious matters
What is a suspicious matter?
A suspicious matter reporting obligation may be triggered where a reporting entity provides (or is asked to provide) a designated service to a customer and suspects on reasonable grounds that the person is not who they claim to be. A suspicious matter reporting obligation may also be triggered where the reporting entity suspects on reasonable grounds that information that it has about the provision of the designated service may relate to a criminal offence or an investigation into an offence. Such offences include money laundering, the financing of terrorism, tax evasion, or any other offence under a Commonwealth, State or Territory law. The customer must be using or attempting to gain a designated service. The designated service does not need to have been provided to the customer in order to submit a report to AUSTRAC. For example, a suspicious matter could involve an incomplete transaction, a query from a potential customer, or a type of behaviour.
| Reporting entities who require futher information about suspicious matters and completing Suspicious Matter Reports (SMRs) are encouraged to complete the AUSTRAC AML/CTF reporting e-learning course. This course can be accessed within AUSTRAC Online. |
How and when must a suspicious matter be reported?
A reporting entity must complete an SMR and lodge it with AUSTRAC if the reporting entity has reasonable grounds for suspicion. The reporting entity should report a suspicious matter as soon as practicable after forming the suspicion. If the suspicious matter relates to the financing of terrorism, the report must be lodged within 24 hours. For all other matters, the SMR must be lodged within 3 business days after the day the suspicion was formed.
Should the reporting entity inform others?
The AML/CTF Act specifically prohibits reporting entities from disclosing to the customer or other parties that they have reported a suspicious matter. If the reporting entity informs third parties they may have committed an offence under section 123 of the AML/CTF Act ('offence of tipping off').
What are the benefits of filing an SMR?
Filing an SMR can both benefit the public and protect the reporting entity. SMRs can be used to initiate or further existing investigations by AUSTRAC's partner agencies, but are not used as evidence during prosecution. One reason for this is to protect both the organisation and the staff submitting SMRs. |