Human smuggling suspect Captain Emad could soon see his visa cancelled by local immigration authorities following the announcement made on Friday by the Australian government that the Iraqi national may have violated the Migration Act.

In a statement, Immigration Minister Chris Bowen said probes conducted on federal officials yielded glaring inconsistencies on the information provided by the Iraqi, whose real identity is Ali al-Abassi, when he applied for refugee status in Australia in 2010.

"Investigations by federal authorities about the man indicate some apparent discrepancies in the information he provided to my department during his protection visa assessment process," Mr Bowen said.

The action, he added, will be set in motion should Mr al-Abassi decide to return to Australia.

Once he sets foot in the country, a formal notice will be served by immigration officers to Mr al-Abassi, giving him the fair chance to voice out arguments that would stop authorities from cancelling his visa.

"This is a legal process and the government will not prejudge its outcome," Mr Bowen said.

"The action to notify Ali Al Abassi of the intention to consider cancelling his visa is based on recent evidence gathered by the immigration department," the immigration chief added.

Allegedly known as Captain Emad to close colleagues, Mr al-Abassi was the subject of an ABC report in early June that identified him as the ring leader of a criminal organisation based in Canberra that facilitates the entry of illegal immigrants to Australia.

A day after the report was aired on national television, Captain Emad boarded a plane to fly out of the country but immigration officials were alerted of his departure.

He was allowed to leave though as authorities could not come up with solid evidence that would warrant for a hold-departure order.

Opposition Leader Tony Abbott used the occasion to highlight what he called as a loophole in Australia's ongoing efforts to stop the flow of illegal immigrants into the country, usually coming via the rough seas surrounding the Australian western shores.

Mr Abbott also scored the Labor government for its incompetence in clamping down on the criminal activities of people like Captain Emad.

Mr Bowen has indicated that his ministry has initiated inquiries that would shed light on the alleged illegal operations that were conducted by the group headed by the Iraqi immigrant in Australia.

He clarified, however, that what the Immigration has done so far pertains to "Mr al-Abassi's visa status ... any criminal investigations are a matter for the Australian Federal Police (AFP)."