For many Iranians living in Australia, cryptocurrency looks like a simple way to send money to family in Iran. Under Australian law, however, this is governed by two bodies of legislation: sanctions law and anti-money laundering law. In this article, Dr. Sirous Ahmadi, Registered Migration Agent (MARA 0854826), explains exactly where the legal and banking risks lie, what is prohibited and what is not, and who you should consult for advice.
The short answer
Australia’s sanctions against Iran are targeted. Sending cryptocurrency from Australia to Iran is therefore not always, or automatically, illegal. However, if the money reaches a listed person or entity, passes through one, or the purpose of the transfer is prohibited, this is a serious criminal offence carrying a penalty of up to 10 years’ imprisonment. Crypto exchanges must be registered with AUSTRAC. Banks also report suspicious transactions and can close accounts.
What the law says
1. Iran sanctions are targeted and do not prohibit every transaction. Australia implements United Nations Security Council sanctions in its domestic law. In addition, it applies its own autonomous sanctions in relation to Iran. On 28 September 2025, the Security Council sanctions that had been eased under Resolution 2231 and the JCPOA were automatically reinstated. These sanctions mainly concern arms, goods connected with nuclear and missile programs, and services related to them. For example, it is prohibited to provide services, such as technical, brokering, financial and investment services, that help Iran to supply, sell or use sanctioned goods.
2. Money or assets must not reach listed persons and entities. Under the Autonomous Sanctions Regulations 2011, anyone who, directly or indirectly, makes an asset available to, or for the benefit of, a sanctioned person or entity without the Minister’s permit commits an offence. The definition of “asset” in section 2 of the Charter of the United Nations Act 1945 is very broad and covers any tangible or intangible asset. In practice, cryptocurrency is not outside this rule.
3. Penalties, reach and the possibility of obtaining a permit. Breaching a sanctions measure, or breaching a condition of a sanctions permit, is a serious criminal offence. The penalty is up to ten years’ imprisonment and heavy fines. These laws also apply outside Australia: Australian sanctions law applies to activities within Australia and to the activities of Australian citizens and Australian-registered bodies corporate overseas. That said, in some circumstances, the Minister for Foreign Affairs can grant a permit for an activity that would otherwise be prohibited.
4. AUSTRAC directly supervises crypto providers and banks. Any business that provides digital currency exchange or virtual asset services must be registered with AUSTRAC. Providing digital currency exchange services without being registered with AUSTRAC is an offence. Banks and other “reporting entities” are also required to report international funds transfer instructions (IFTIs) and suspicious matters (SMRs) to AUSTRAC. AUSTRAC’s official guidance on suspicious matter reporting gives a crypto example: a customer bought $15,000 worth of cryptocurrency and sent it to another person’s wallet. This does not fit the customer’s usual pattern of account use. The reporting deadlines are also fixed: within 24 hours if the suspicion relates to terrorism financing, and within 3 business days for other matters such as money laundering.
5. Your bank may be unable to tell you why it made a decision. Disclosing certain information to others, where it could prejudice an investigation, is a criminal offence known as “tipping off”. For this reason, a bank must not tell a customer that it has formed a suspicion about them or has sent a report about them to AUSTRAC.
6. DFAT has specifically pointed to the risk of Iran-linked crypto channels. In guidance for financial institutions on incoming funds from Iran, DFAT’s sanctions office identifies the following among the common patterns: converting cryptocurrency at exchanges and depositing it into Australian bank accounts, and rapid conversion to Australian dollars after cryptocurrency has been accumulated offshore. The same guidance also treats vague transaction descriptions such as “consulting”, “personal business income” or “family support” as a notable red flag. This guidance concerns incoming funds, but it shows that banks are watching Iran-linked crypto transactions closely.
Key risks and requirements at a glance
| Issue | Legal rule | Practical consequence for the account holder |
|---|---|---|
| Listed recipient or intermediary | Making an asset available to a sanctioned person or entity without the Minister’s permit is an offence | Risk of criminal prosecution, even if the transfer is not direct |
| Purpose of the transfer | Financial services connected with sanctioned goods are prohibited | The purpose and nature of the payment must be clear and documented |
| Penalty | Up to 10 years’ imprisonment and heavy fines | This risk is far more serious than having an account closed |
| Application outside Australia | Covers the actions of Australian citizens overseas | Making the transfer from a third country does not remove the risk |
| Crypto platform | Registration with AUSTRAC is mandatory | Using an unregistered platform increases the money laundering and terrorism financing (AML/CTF) risk |
| Bank reporting | Suspicious matter reports (SMRs) within 24 hours or 3 business days | Your transaction may be reported without your knowledge |
| Account closure | AFCA considers whether the account was closed fairly and with sufficient notice, usually 14 calendar days | You can make a free complaint |
| Sanctions permit | The Minister for Foreign Affairs issues permits in certain circumstances | A lawful pathway for an activity that would otherwise be prohibited |
What this means for you
According to Dr. Sirous Ahmadi, the key point is that Australian law does not treat ordinary financial support for family as an offence in itself. What creates serious risk is these three things: who receives the money, what the money is for, and which channel it moves through. The most dangerous scenario is where the recipient, the exchange or an intermediary along the way is, without your knowledge, connected to a sanctioned person or entity. Cryptocurrency does not remove this risk. In that situation, in addition to having a bank account closed, the sender may face criminal prosecution.
Precautions Dr. Ahmadi recommends:
- Search the name of the recipient and any intermediary against DFAT’s Consolidated List of sanctions.
- Use only providers registered with AUSTRAC, and avoid unknown exchanges and intermediaries.
- Keep the purpose of every transfer clear and documented, and do not write a vague or inaccurate description for a transaction.
- If your bank closes your account, be aware that a bank can stop providing a product or service to a customer, just as a customer can move to another bank. You can, however, complain to AFCA. It provides free, fair and independent services. AFCA considers whether the bank gave sufficient notice. If the bank did not give sufficient notice or breached another obligation, AFCA can ask the bank to extend the account closure period or to provide compensation. However, it does not usually require the bank to reopen the account. Note that AFCA is currently experiencing delays in allocating cases to dispute resolution specialists because of a significant increase in complaints.
Dr. Sirous Ahmadi, as a Registered Migration Agent, also stresses one professional point: this topic falls within sanctions law and financial services law and is not migration advice. The right course is to consult a lawyer who specialises in sanctions or financial services before any transfer, or to ask the Australian Sanctions Office at DFAT directly. For questions, you can email [email protected]. If your question relates to your visa application or residency status, Dr. Ahmadi will assess the migration aspects and refer you to an appropriate sanctions specialist.
Sources
- Iran sanctions framework – DFAT
- Snapshot: Iran sanctions framework – DFAT
- Snapshot: Iran sanctions regime (UNSC and autonomous) – DFAT
- Iran – DFAT sanctions regime page
- Five persons listed under the Autonomous Sanctions Regulations 2011 – Iran criteria – DFAT (September 2024)
- Sanctions risks of incoming funds from Iran – DFAT
- Virtual asset registration actions – AUSTRAC
- Enrol and register as a digital currency exchange – AUSTRAC
- Suspicious matter reports – AUSTRAC (September 2026)
- Suspicious Matter Reporting: Reference Guide – AUSTRAC (December 2025)
- Tipping off – AUSTRAC (July 2026)
- Suspicious matter reporting FAQ – AUSTRAC
- Factsheet – Account closure – AFCA
- Make a complaint – AFCA
- Delays in allocating Dispute Resolution Specialists – AFCA
Before you transfer, be sure of your position
If you send money to family in Iran and are concerned about the effect on your bank account or your migration record, you don’t need to decide on guesswork. Dr. Sirous Ahmadi, Registered Migration Agent (MARA 0854826), will assess your circumstances from a migration perspective. Where the issues concern sanctions law and financial services, he will also point you to the right path so that you can get advice from a specialist in that field. To book a dedicated consultation, contact Dr. Ahmadi’s office.
Frequently asked questions
Is every money transfer from Australia to Iran illegal?
No. Australia’s sanctions against Iran are targeted. They include an arms embargo, prohibitions on goods and services connected with nuclear and missile programs, and the freezing of assets of listed persons and entities. The legal risk depends on who the recipient is, what the money is for and which channel it moves through.
What is the penalty for breaching Iran sanctions in Australia?
According to DFAT, breaching a sanctions measure, or breaching a condition of a sanctions permit, is a serious criminal offence. The penalty is up to ten years’ imprisonment and heavy fines. These laws also apply to the actions of Australian citizens outside Australia.
Can my bank report my crypto transfer to AUSTRAC without telling me?
Yes. Banks and crypto exchanges are required to report suspicious matters to AUSTRAC. Because of the tipping off rules, they must not tell a customer that they have formed a suspicion about them or sent a report.
What can I do if my bank closes my account?
You can complain to AFCA. AFCA provides a free and independent service and considers whether the bank acted fairly and gave sufficient notice, usually 14 calendar days. AFCA does not usually require the bank to reopen the account, and it is currently experiencing delays in handling cases.
Who should I consult for advice about sanctions?
This is not a migration advice matter. You should consult a lawyer who specialises in sanctions or financial services, or contact the Australian Sanctions Office at DFAT at [email protected].
This answer reflects the law and policy as verified on November 9, 2026. Immigration rules change frequently — confirm the current position before acting.
Dr. Sirous Ahmadi Registered Migration Agent 0854826
This article is general information only, current at the date shown, and is not legal advice. Do not rely on it for your own situation — immigration law and policy change frequently. Seek advice from a registered migration agent or immigration lawyer about your circumstances.