A section 167 notice is a written notice from an AUSTRAC authorised officer that requires you to give information, produce documents, or make copies of documents and produce the copies, within the period and in the manner the notice sets. It is one of the information-gathering powers in Part 14 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth). Complying is not optional: failing to comply is a criminal offence and, separately, a civil penalty contravention. The notice itself, though, is a demand for information, not a penalty.
If a notice has just arrived, do these three things first:
- Find the response date and the required manner of response in the notice. Section 167 sets no minimum period, so the date in the notice is the one that counts.
- List every item the notice asks for, in its own words. Your response has to deal with each one.
- Arrange legal advice now if anything may be privileged, if the scope is unclear, or if you cannot meet the date.
In August 2026 AUSTRAC began issuing section 167 notices to businesses that appeared to be providing designated services without having enrolled. This guide explains what a notice can require, what the Act says about responding, and a practical response plan.
TL;DR
- A section 167 notice is compulsory. Read the deadline and the required manner of response first: the notice sets both, and section 167 itself sets no minimum period.
- Failing to comply is an offence carrying up to 6 months’ imprisonment, 30 penalty units, or both. Failing to comply is also a civil penalty contravention under section 167(3A) and (3B). The notice must set out the effect of the offence, the legal professional privilege provisions and sections 136 and 137.
- Knowingly giving false or misleading information, or knowingly producing a false or misleading document, to an authorised officer is a separate offence carrying up to 10 years’ imprisonment, 10,000 penalty units, or both.
- You are not excused from answering because an answer might incriminate you. The Act limits how your answers can be used against you, but they can still be used in proceedings under the AML/CTF Act itself, such as proceedings for failing to enrol.
- If you reasonably believe information is protected by legal professional privilege, the Act requires you to give AUSTRAC an LPP form within the notice period, not simply leave it out.
- If you confirm that the business was required to enrol, apply to enrol promptly. Applying ends the continuing obligation to enrol; it does not answer the notice or undo contraventions that have already occurred.
Table of contents
- What is a section 167 notice?
- Why agencies are receiving them now
- What the Act says about complying
- A step-by-step response plan
- Section 167 or another AUSTRAC notice?
- What can happen after you respond
- Our perspective
- How AML Guard helps
- FAQ
- Sources
What is a section 167 notice?
Section 167 applies to a person when an authorised officer reasonably believes the person has knowledge of information, or possession or control of a document, that is relevant to compliance with or enforcement of an offence provision or a civil penalty provision of the Act or the regulations, or certain Crimes Act 1914 and Criminal Code offences relating to the Act.
The officer may then, by written notice, require the person to:
- give the officer information;
- produce documents to the officer; or
- make copies of documents and produce the copies;
in each case “within the period and in the manner specified in the notice” (section 167(2)).
An authorised officer is the AUSTRAC CEO or a person appointed under section 145, such as a member of AUSTRAC’s staff.
Two features matter in practice:
- It can be given to any person, not only to a reporting entity. That is why AUSTRAC can use it to find out whether a business that has not enrolled should have. Not being enrolled is not a reason to set a notice aside.
- The period is whatever the notice says. Notices under sections 49 and 49B must generally allow at least 14 days. Section 167 contains no equivalent minimum, so check the date in your notice rather than assuming you have two weeks.
Why agencies are receiving them now
AUSTRAC’s article of 28 August 2026 said it had begun issuing section 167 notices to businesses that appear to be providing designated services but have not enrolled, including real estate agents, accountants, lawyers and jewellers, to help it determine whether they are providing regulated services and meeting their obligations.
On 30 September 2026 AUSTRAC announced that it had begun issuing infringement notices to businesses in the real estate, accounting and jewellery sectors that it believes failed to enrol within 28 days of providing a designated service. Its media release said this followed the formal requests for information it issued in August, and that the notices were issued at $21,840 for corporate entities and $4,368 for individuals but can accrue on a daily basis.
AUSTRAC signalled this in advance: its May 2026 statement of expectations said it would take early enforcement action against businesses who fail to enrol.
AUSTRAC used section 167 notices in its August 2026 enrolment campaign. A particular notice may concern something else: the power covers any information relevant to compliance with or enforcement of the Act’s offence and civil penalty provisions. Read your notice for its stated scope.
What the Act says about complying
| Provision | What it says | Consequence |
|---|---|---|
| Section 167(3) | It is an offence to omit to do something a notice requires. | Imprisonment for 6 months or 30 penalty units, or both. |
| Section 167(3A) and (3B) | You must comply with the notice. Failing to comply is a contravention of a civil penalty provision. | A court can order a civil penalty. Section 167(3A) is also listed as a designated infringement notice provision, so an AUSTRAC authorised officer can issue an infringement notice for it. |
| Section 167(4) | The notice must set out the effect of section 167(3), (5) and (6) and sections 136 and 137. | Read those passages in your notice carefully. |
| Sections 136 and 137 | Giving information, or producing a document, to the AUSTRAC CEO or an authorised officer knowing it is false or misleading is an offence. Leaving out something without which the information is misleading also counts. | Imprisonment for 10 years or 10,000 penalty units, or both. The provisions do not apply where the information or document is not false or misleading in a material particular. |
| Section 169 | You are not excused from answering or producing a document because it might tend to incriminate you or expose you to a penalty. | The Act bars the information or document from being used against you in most other proceedings, but not in proceedings under the Act itself (such as proceedings for failing to enrol) or the other proceedings listed in section 169(2). |
| Section 167(5) and (6) | If you reasonably believe information or a document is protected by legal professional privilege, you must give the AUSTRAC CEO an LPP form within the period specified in the notice. Failing to do so is a civil penalty contravention. | See the privilege step below. |
| Section 168 | You are entitled to reasonable compensation for complying with a requirement to make copies of documents. | Applies to copying requirements under section 167(2)(c). |
The offence penalties above are maximums for an individual. For a body corporate, section 4B(3) of the Crimes Act 1914 allows a fine of up to five times the natural person maximum, unless the contrary intention appears.
For scale: AUSTRAC’s guidance on the consequences of not complying gives the value of a penalty unit as $364 for contraventions on and from 1 July 2026. Under section 175, the maximum pecuniary penalty a court can order is 100,000 penalty units for a body corporate and 20,000 penalty units for other persons. Those are maximums for a court order, not penalties imposed because a section 167 notice arrives. Whether any penalty follows, and how much, depends on the provision contravened, the conduct and the enforcement process. Our guide to AUSTRAC penalties covers enforcement more broadly.
A step-by-step response plan
The Act sets the obligations. The steps below are a practical way to meet them, not a process the Act prescribes.
- Diarise the deadline and the required manner. Note the date, the format and the address or portal for the response. If you cannot meet the period, contact the officer named in the notice before it expires, take advice about seeking more time, and keep a record of what you are told. Do not assume an extension.
- Give one person ownership. Usually the principal or the AML/CTF compliance officer; one owner keeps the answers consistent.
- Build a request-by-request schedule. Number every item the notice asks for. For each one, record who holds the information, what you found, whether you found nothing, and any lawful basis for withholding something. A response is complete when every item has an answer, not when the easiest documents have been sent. Where you do not hold something, say so. Do not fill gaps with estimates presented as facts: sections 136 and 137 make knowingly false or misleading information an offence, including information that is misleading because something has been left out.
- Gather and preserve the records. That may include your entity and ABN details, the services you provide and when you started, and any AML/CTF documents you hold. Keep everything you collect, including working notes.
- Work out whether you provide designated services. For real estate, they are brokering the sale, purchase or transfer of real estate in the course of carrying on a business, and selling or transferring real estate as part of a business selling real estate where no independent agent brokers the sale. AUSTRAC’s real estate guidance and online check tool explain the boundaries.
- If you should be enrolled and are not, apply to enrol now. The enrolment obligation in section 51B continues until you apply or stop being a reporting entity, and each day from the deadline day until then is a separate contravention. Applying stops new days accruing; it does not undo the days that have passed, and it does not answer the notice. Designating an AML/CTF compliance officer is a separate obligation with its own 28-day rule (section 26K). Our guide to missing the AUSTRAC enrolment deadline covers this step in detail.
- Deal with privilege properly. If you reasonably believe something is protected by legal professional privilege, give AUSTRAC an LPP form within the notice period. Privilege is not a reason to leave an item out silently. AUSTRAC’s guidance recommends that anyone who is not a lawyer seek legal advice before withholding information on the basis of privilege.
- Check, sign off and send in the manner specified. Check the response against the schedule before it goes. Keep a copy of exactly what was sent, when and how. An authorised officer may keep documents you produce for as long as reasonably necessary; you are entitled to a certified copy as soon as practicable (section 171).
- Get help early. Take legal advice where the questions go beyond facts you can state with certainty. AUSTRAC’s Contact Centre is on 1300 021 037, and AUSTRAC has said that contacting it for help isn’t a red flag.
Section 167 or another AUSTRAC notice?
The section number on the notice tells you which of AUSTRAC’s powers is being used. If your business has not enrolled and the notice is under section 202, it is asking whether you provide designated services in Australia and the details of those services.
| Section | Who issues it | What it is for |
|---|---|---|
| 26Q | AUSTRAC CEO | A written request to a reporting entity to produce its AML/CTF program documents within the period specified. |
| 49 | AUSTRAC CEO and other listed officials | Further information or documents after a report has been made, such as a suspicious matter report or threshold transaction report. The period must be at least 14 days, except in the cases section 49(1B) lists. |
| 49B | AUSTRAC CEO | Information or documents that may assist AUSTRAC to combat money laundering, terrorism financing, proliferation financing or other serious crimes. The period must generally be at least 14 days. |
| 167 | An authorised officer | Information or documents relevant to compliance with, or enforcement of, the Act’s offence and civil penalty provisions. Any person can receive one. |
| 172A | AUSTRAC CEO | Producing documents, or appearing before an examiner to answer questions on oath or affirmation. |
| 202 | AUSTRAC CEO, authorised officers, and listed Australian Federal Police and Australian Crime Commission officers | A notice to a person believed on reasonable grounds to be a reporting entity, for information or documents relevant to whether it provides designated services in Australia and the details of those services. |
One difference is worth knowing. The Act’s tipping-off offence in section 123 covers suspicious matter reports and notices under sections 49 and 49B. It does not list section 167 notices, so a section 167 notice is not, by itself, a bar on getting confidential legal advice. If the material you are gathering also involves a suspicious matter report or a notice under section 49 or 49B, check those restrictions before you discuss or share it.
What can happen after you respond
There is no fixed next step. AUSTRAC’s guidance lists its enforcement options: civil penalty orders and injunctions, enforceable undertakings, infringement notices and remedial directions. It also says infringement notices may be made public.
In 2026 the pattern was information requests in August and infringement notices for failing to enrol in September. If your business provides designated services, enrolment is the first obligation, not the last: AUSTRAC’s May 2026 statement expects newly regulated businesses to have an AML/CTF program, a compliance officer and trained staff, and to be ready to report a suspicious matter. It also says AUSTRAC expects effort, not perfection, during 2026-27. Our guide to preparing for an AUSTRAC request covers getting your files ready.
Our perspective
A first notice tests whether a business can describe itself accurately and quickly. The agencies in the strongest position are the ones that can show, from their own records, what services they provide, when each customer was checked and who made each decision.
The response itself deserves the same care as a compliance document: rushed answers are where errors creep in.
How AML Guard helps
AML Guard is built for Australian Tranche 2 reporting entities. It records each identity check, screening result and officer decision against the case, keeps a SHA-256 fingerprint of each uploaded document, and produces case reports, such as a CDD report and a case summary, that you can give AUSTRAC. Records held elsewhere, or created before you started using the platform, stay where they are.
Its guided wizards produce your ML/TF risk assessment, AML/CTF program, customer acceptance policy and training manual, and can pre-fill later documents from your risk assessment. AML Guard is not self-service: firms start with a demo, where we walk through how the platform fits your agency.
FAQ
Is a section 167 notice a fine?
No. It is an information-gathering power in Part 14 of the Act that requires you to give information or produce documents. Penalties can arise if you do not comply, or if you knowingly give false or misleading information. In 2026 AUSTRAC issued infringement notices for failing to enrol after its August information requests.
How long do I have to respond to a section 167 notice?
The period specified in the notice. Section 167 does not set a minimum period, unlike a section 49B notice, which must generally allow at least 14 days. If you cannot meet the date, contact the officer named in the notice before it passes and take advice about seeking more time.
Do I have to respond if I don’t think my business is regulated?
Yes. Section 167 applies to any person an authorised officer reasonably believes holds relevant information, whether or not that person is a reporting entity or enrolled. If you have received an AUSTRAC notice to produce documents and believe you provide no designated service, say so in your response and explain why.
Can I refuse to answer because the answer might incriminate me?
No. Section 169 says you are not excused on that ground. It also limits how the information or documents can be used against you: they are not admissible in other proceedings, but they can be used in proceedings under the Act itself, such as proceedings for failing to enrol, and in the other proceedings section 169(2) lists.
Can I talk to my lawyer or adviser about the notice?
Yes. The tipping-off offence in section 123 covers suspicious matter reports and notices under sections 49 and 49B; it does not list section 167 notices. It still applies to information about any suspicious matter report your business has given or must give, so check that before sharing such material. Taking advice before you respond is sensible.
What if some of the information is privileged?
If you reasonably believe information or a document is protected by legal professional privilege, section 167(5) requires you to give the AUSTRAC CEO an LPP form within the period specified in the notice. Failing to do so is a civil penalty contravention. Describing privileged material in the form does not, of itself, waive the privilege (section 242(2)).
Will I get my original documents back?
An authorised officer may keep a document produced under Part 14 for as long as is reasonably necessary. You are entitled to a certified copy as soon as practicable and, until it is supplied, to reasonable access to the document (section 171). Keep your own copy of everything you send.
Sources
- Anti-Money Laundering and Counter-Terrorism Financing Act 2006, sections 5, 26K, 26Q, 49, 49B, 51B, 123, 136, 137, 145, 167 to 172A, 175, 184, 202 and 242 | Federal Register of Legislation
- Crimes Act 1914, section 4B | Federal Register of Legislation
- Check if you may be regulated | AUSTRAC
- AUSTRAC issues notices to non-enrolled businesses (28 August 2026) | AUSTRAC
- AUSTRAC begins issuing infringement notices to non-enrolled businesses (30 September 2026) | AUSTRAC
- Update to regulator statement of expectations (May 2026) | AUSTRAC
- Consequences of not complying | AUSTRAC
- Legal professional privilege | AUSTRAC
- Real estate designated services | AUSTRAC
Related on AML Guard: Missed the AUSTRAC enrolment deadline? · AUSTRAC penalties 2026 · Audit-ready AML files for an AUSTRAC request · AML record keeping
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