An agent suspects that a series of property transactions they've been asked to facilitate may be part of a money laundering scheme involving layered transfers between related entities. What is their primary legal obligation?
Correct Answer
C) Lodge a suspicious matter report and avoid tipping off the clients about it
When an agent has reasonable grounds to suspect money laundering, the AML/CTF Act requires a suspicious matter report to AUSTRAC. The agent must not disclose to the clients that a report has been made or is being considered (tipping off). The Act does not require the agent to continue acting; whether to continue is a risk decision for the agency.
Why This Is the Correct Answer
The primary legal obligation on forming a reasonable suspicion is to lodge a suspicious matter report with AUSTRAC within three business days. The tipping-off prohibition means the clients must not be told about the report. Whether to keep acting for them is a separate risk decision.
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An agent suspects a client may be using the property transaction to launder money but is not certain. The client becomes aggressive when asked for additional identification. What is the agent's best course of action?
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