A WA agent becomes aware that their client intends to use the property for illegal purposes after settlement. Does the agent have any reporting obligation?
Correct Answer
B) The agent may have obligations under anti-money laundering legislation to report suspicious matters to AUSTRAC, and should not tip off the client about any report
Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), if an agent forms a suspicion that a transaction may be related to illegal activity, they have an obligation to submit a suspicious matter report (SMR) to AUSTRAC. The agent must not 'tip off' the client about the report, as this is a criminal offence.
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