Learn more about our compulsory examination and information gathering powers. 

This guidance explains what happens when you receive a section 172A notice from AUSTRAC. 

On this page

• What’s in a s172A notice
• What to expect in an examination
• Legal representation
• How we use information provided during an examination
• Welfare
• Disclaimer

This page explains AUSTRAC’s compulsory examination powers contained in Division 3 of Part 14 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act). This is a new power legislated as part of the AML/CTF reforms. AUSTRAC uses these powers to:

• obtain documents and other information we need to make regulatory and enforcement decisions
• gather evidence in a form that can be used in proceedings. 

Section 172A outlines that we may issue a notice to a person requiring them to attend for an examination and answer questions on oath or affirmation. We can only use this power if we believe on reasonable grounds that a person has information or documents relevant to: 

• compliance with the AML/CTF Act, Rules or regulations
• a prescribed criminal offence.

If you receive a s172A notice, you must attend and answer questions asked of you. Failure to comply is an offence.

We use examinations to inquire and gather evidence to seek to understand what has happened. A s172A notice does not necessarily mean we think you have been involved in conduct that: 

• has contravened the AML/CTF Act, Rules or regulations
• is a prescribed criminal offence. 

What’s in a s172A notice

A s172A notice must be in writing. The notice may require you to: 

• attend an examination before an examiner
• answer questions under oath or affirmation
• produce documents either before or during the examination. 

The notice will include key information about: 

• your rights and responsibilities
• the consequences if you don’t comply with the notice.

The notice will explain the general nature of the matter the questions will relate to. This is to help you prepare, and make sure you are aware of what may be discussed during the examination. We will not provide the list of questions in advance.  

Time and location

The notice will set out the time and place for the examination. If it is practical, in most cases this will be at a place near where you live or work. The examination will typically take place during business hours. Examinations may be extended and may take place in sessions over several days. There will be breaks and facilities available during the examination.

Where practicable, AUSTRAC staff may contact you to arrange a suitable time for the examination before issuing the notice. Depending on the nature of the investigation, you may be required to appear at short notice. We can postpone an examination, but this would only be in exceptional circumstances such as serious illness or other emergencies.

Typically, we conduct examinations in person. However, we may choose to use virtual options instead. This may include virtual communication tools like Microsoft Teams. 

When we use virtual tools, we will provide instructions to you.

Conditions in the notice

The notice may contain a condition that you must not disclose:

• the notice
• the fact that you are required to attend for an examination
• the general nature of the examination. 

You may only disclose this information to seek legal advice or discuss the examination with your healthcare professional. Learn more about Legal representation and Welfare.  

Failure to comply with the notice, and any related conditions imposed, is a criminal offence. 

The notice and accompanying information will contain details of whom to contact at AUSTRAC for questions or concerns about the process. 

What to expect in an examination

Examinations will take place in private. The only people who will be present are the examiner, you, your legal representative, authorised AUSTRAC staff, and those assisting in the conduct of the examination, including supporting services, such as an interpreter, if required. 

Generally, you cannot bring anyone else with you to the examination. If you need a support person, we can consider such requests on a case-by-case basis. If you think someone else may have relevant information, you can tell the AUSTRAC case officer.

The role of the examiner

The examiner will control the conduct of the examination. They will require you to give an oath or affirmation. If necessary, they will also direct you to answer questions asked of you in the examination. 

Your role as examinee

You must comply if the examiner requires you to answer a question that is relevant to: 

• compliance with the AML/CTF Act, Rules or regulations
• an offence against the Crimes Act 1914 or the Criminal Code that relates to the AML/CTF Act, Rules or regulations. 

This legal requirement overrides any other duty or obligation that you may have to keep certain information confidential. There are limited exceptions, such as legal professional privilege.

During an examination, you may be required to answer questions which relate to suspicious matter reports submitted to AUSTRAC. The information you provide may assist in the investigation. If you have any concerns with answering these questions, you should raise this with the examiner. 

We may also issue you with another notice to gather additional records from you. This may happen during or after an examination.

Privacy and records of the examination

Ordinarily we will make an electronic recording of the examination and will make a transcript of the questions asked and responses given during the examination. You may ask for a copy of the transcript and AUSTRAC must provide it in writing if requested. We may place conditions on what you can do with the transcript. 

During the examination, the examiner may place conditions on what is allowed to be disclosed about the examination, or about it taking place at all. This may also include placing conditions on any records of the examination to ensure that your privacy is maintained. A breach of these conditions may be a criminal offence. 

Self-incrimination

This part refers to s172K of the AML/CTF Act.

You may believe that answering a question, producing a document or signing a record in response to a s172A notice might tend to incriminate you or expose you to a penalty.

However, this does not remove your obligation to:

• answer questions that are relevant to compliance with the AML/CTF Act, Rules and regulations, or prescribed criminal offences
• comply with certain examination requirements. 

Section 172K(3) limits how certain statements or signatures that we have required you to make as part of an examination may be used against you. 

You must state, before you answer a question or sign a record, that it might tend to incriminate you or expose you to a penalty. If you do this, and that risk in fact exists, the statement you made or the fact that you signed the record is not admissible in evidence against you in:

• civil or criminal proceedings
• proceedings for the imposition of a penalty.

It is only admissible in proceedings relating to whether your statement, or any statement contained in the signed record, was false. 

Providing false or misleading information or documents

If you knowingly provide false information during an examination or make a false statement, we may use the evidence you give in an examination to prove this. It is a serious criminal offence to knowingly provide false or misleading information or documents to AUSTRAC. It can result in a penalty of up to 10 years imprisonment.

Legal representation

You are entitled to be represented by an Australian legal practitioner during an examination. We encourage you to seek independent legal advice if you are required to attend an examination. You can provide your legal representative with the notice and any details of the examination. A legal representative may: 

• be present during the examination
• ask questions of you
• be able to receive a copy of a transcript of the examination in certain circumstances. 

While you are generally permitted to be represented by a legal practitioner, there may be objections to a particular legal practitioner attending. This may happen if that legal practitioner’s presence would prejudice, or has the potential to prejudice, the investigation. For example, if the legal practitioner: 

• is being instructed by more than one person who is being examined in the same matter
• also acts for an entity or another person being investigated
• may themselves be at risk of investigation by AUSTRAC in relation to the matter.

It will not usually be appropriate for in-house lawyers and other representatives of your employer to attend an examination. This is due to the likelihood of there being a conflict of interest. 

The role of your legal practitioner

Your legal practitioner will normally only be permitted to object to questions asked on the basis that they are: 

• unclear or unfair
• likely to reveal information that may be covered by legal professional privilege
• may be irrelevant to the subject matter of the examination. 

Your legal practitioner may also be permitted to:

• re-examine you to clarify any response to an earlier question
• make submissions on your behalf that are relevant to the matter at the end of the examination. 

The examiner may stop a legal representative from speaking to you or the examiner during the examination if the examiner thinks they are trying to obstruct the examination. For example, if they continually object on minor issues. Failure to follow this requirement may be an offence. 

Legal professional privilege

You may claim legal professional privilege in response to a question. We will consider claims and we may require further information to properly assess the claim. 

How we use information provided during an examination

Examinations are conducted in private. As standard practice, we will keep the examination and related records confidential and will not publish them or disclose them to unauthorised persons. We do this to protect you, the regulatory process or the investigation.

We may use information obtained during an examination: 

• to assess contraventions of the Act and relevant legislation
• as evidence in court proceedings
• to undertake administrative decision-making. 

We may also disclose this information to partner agencies in accordance with our legal and policy obligations.

Welfare

We recognise that being involved in an investigation or regulatory process can be stressful. We understand that being required to keep the notice or examination secret presents an additional challenge. 

As well as disclosing to your legal practitioner, you can talk about the fact you’ve received a notice or are being examined to an appropriate health care practitioner for the purpose of seeking psychological or other wellbeing support.  

Disclaimer

This guidance is general information to support you to understand AUSTRAC’s information gathering powers. You should seek independent legal advice regarding your specific circumstances.