Decide what may be said to the client once a suspicion is reported
Key facts
- Human involvement
- RedLawyer-led
- How AI is used
- Assemble the material the practitioner reads before deciding — the categories of information in section 123(2), the exceptions in section 123 with the ones not yet in operation marked, the conduct rules on confidentiality, instructions and termination, and a list of everyone inside and outside the practice who has already seen the escalation. The tool writes no part of the note and proposes no wording for anything said to the client.
- What the lawyer must review
- The practitioner writes the note. Confirm that any exception relied on is actually in operation — AUSTRAC's guidance records that section 123(5), the exception for disclosures between reporting entities, is not yet in operation. Decide the privilege position item by item rather than over the file as a whole. Work the collision with the duty to the client through the conduct rules that apply in your jurisdiction, and take an ethics ruling if the retainer decision turns on it.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | Supporting preparation only. Assemble the material the practitioner reads before deciding — the categories of information in section 123(2), the exceptions in section 123 with the ones not yet in operation marked, the conduct rules on confidentiality, instructions and termination, and a list of everyone inside and outside the practice who has already seen the escalation. The tool writes no part of the note and proposes no wording for anything said to the client. The tool writes nothing into the document. Substantive advice, judgement and any restricted content remain with the responsible human. |
| Lawyer | Perform the substantive analysis and decisions. Independently check any permitted supporting work and approve the exact output for its intended use. |
Checklist
- List the information the prohibition actually covers by reference to section 123(2), and separate it from information about the matter you may still discuss with the client.
- Check that each exception you propose to rely on is in force; AUSTRAC states section 123(5) is not yet in operation, so do not rely on it.
- Decide the privilege position item by item and record the basis; section 242 preserves the law of legal professional privilege and section 242A allows guidelines for reviewing assertions of it.
- Work the retainer decision through the conduct rules that bind you — confidentiality, following lawful instructions, and terminating for just cause on reasonable notice — and record which rule you relied on.
- Close the list of people who know: name who inside the practice is told, confirm no client-facing letter, invoice narration or shared file note records the report, and confirm no tool with client access holds it.
Forms and precedents for this task
| Form or precedent | Kind | AI use | Summary |
|---|---|---|---|
| AUSTRAC suspicious matter report | Form | AI use Yellow | Link to the AUSTRAC suspicious matter report lodged in AUSTRAC Online. |
| AUSTRAC legal professional privilege form for a report | Form | AI use Yellow | Link to AUSTRAC's privilege form for a suspicious matter report or a threshold transaction report. |
| AUSTRAC legal professional privilege form for a notice | Form | AI use Yellow | Link to AUSTRAC's privilege form for a notice or request for information. |
| Tipping-off holding script for staff and the approved client note | Notice | AI use Red | Words the compliance officer approves for staff to use when more information is needed or a matter cannot proceed, so a client is not told that a suspicious matter report exists or that the practice is suspicious. |
Signed-in accounts can read the full text of each one. All precedents.
Sources
- AUSTRAC: Tipping off · 2026-09-27
- AUSTRAC: Legal professional privilege · 2026-09-27
- Parliamentary Library Bills Digest: Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 (section 242 and legal professional privilege) · 2026-09-27
- Law Institute of Victoria: Ethical obligations in complying with the AML/CTF regime (11 December 2025) · 2026-09-27
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.