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Regulatory explainer 2 June 2026 5 min read

IFTI reports: when international transfers create AUSTRAC obligations

International funds transfer instructions are mostly a banking obligation — but Tranche 2 firms can find themselves in scope unexpectedly.

By James Carter

An International Funds Transfer Instruction (IFTI) report is required when a reporting entity sends or receives an instruction to transfer money or property between Australia and a foreign country. Most SMEs will never file one — but the path into scope is narrower than people assume.

When an SME might file

  • Holding client funds in trust and remitting to a foreign vendor.
  • Receiving settlement funds from an overseas buyer for a property transaction.
  • Operating a remittance arrangement as part of a broader business.

What to check before assuming you're out

If you ever instruct a bank to send or receive money internationally on a client's behalf, talk to your AMLCO about whether the instruction itself creates an IFTI obligation. The bank will typically file — but the dual-reporting question is fact-specific. Don't assume the bank's filing covers your obligation.

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