Using a 12VAC Transformer For a LM317T Power Supply
Not quite safe. 

First, the transformer is fine.  However...

12V AC would deliver 16.8V DC minus the diode bridge drop of 1.2V, so 15.6V nominal. This is pushing the limits of the 16V capacitor, but looks OK at first glance.

But if your AC mains is above nominal, or if the transformer is poorly regulated*, then the voltage at no load will rise above the nominal 15.6V by anything up to: 10% for the mains voltage, and 15 or 20% for the transformer's regulation; I'll use a total of 25% - that would give a worst case voltage of 19.5V across it.

So be prepared for the capacitor to have a short, messy, and possibly spectacular life. You might get away with it for a short while, but better to replace it with a 25V one.


Transformer regulation : to deliver 12V AC at its rated current, a transformer is designed to give 10%, 15% or 20% more when unloaded. Big transformers (> 2amps) may have 10% regulation; I'm assuming 15% for yours, but its datasheet may tell you for sure.