What triggers IFTI
An IFTI is triggered by an instruction to transfer funds across the AU border, given or received in the course of providing a designated service. The most common scenarios across Tranche 2 verticals: a foreign buyer wires deposit funds from an offshore account into the agency's or conveyancer's trust account, a foreign vendor receives net sale proceeds wired offshore after settlement, an accounting practice arranges an outgoing wire on behalf of a client for a tax-structured payment.
Importantly, the IFTI is the practice's obligation, not the bank's. Even if your AU bank also files an IFTI for the same transfer, the practice's report is separate and required.
What the IFTI report contains
Sender details, recipient details, sending and receiving institutions, currency, amount, transfer date, the purpose of the transfer, the designated service context, and the practice's contact details. AUSTRAC has a specific schema for IFTI lodgement; the data fields are not optional.
Caltury's IFTI workflow captures the transfer instruction at the point it is given or received, drafts the report in AUSTRAC schema, and tracks the 10-business-day clock on the dashboard. You review, sign and lodge in AUSTRAC Online.
- Sender: full identifying details, address, account
- Recipient: full identifying details, address, account
- Sending institution: name, BIC/SWIFT, country
- Receiving institution: name, BIC/SWIFT, country
- Amount, currency, date, purpose
- Designated service context
Deadline tracking and consequences
The 10-business-day deadline runs from the date the instruction is given or received. Caltury surfaces the clock on the dashboard and in the calendar feed; the named Compliance Officer has visibility on every pending IFTI.
Missed IFTI is a civil-penalty offence under the Act. The penalty regime treats missed reports seriously because IFTI data feeds AUSTRAC's national risk picture. Practices with foreign-buyer exposure should expect IFTI to be a regular workflow rather than an exception.
Common questions
Do I file an IFTI if the buyer's overseas bank routes through an AU bank?
Yes. The trigger is the instruction crossing the border, not the routing path. If the funds originate from an offshore account and are received into your trust account, the instruction is yours to lodge.
What if the transfer is below A$10,000?
IFTI has no dollar threshold. Every cross-border transfer instruction provided in the course of a designated service triggers an IFTI, regardless of value. This is a different rule to TTR (which has the A$10,000 cash threshold).
Can Caltury lodge the IFTI for me?
No. AUSTRAC Online accepts only the practice's own submission. Caltury produces the draft in the correct schema; you review, sign and lodge.
What happens if I lodge late?
Late lodgement is a civil-penalty offence. The realistic risk is not the maximum penalty; it is the cumulative effect of repeated late lodgements showing as a pattern in an AUSTRAC inspection. The mitigation is straightforward: use Caltury's clock tracking and lodge inside the 10-day window.
This page is general information about Australian AML/CTF obligations. It is not legal advice. AUSTRAC has not reviewed this content. For situations specific to your practice consult an Australian-qualified lawyer or AML/CTF adviser.