$166.4 Million Allocated to Anti-Money Laundering and Counter-Terrorism Efforts
Attorney-General Mark Dreyfus stressed the significant issue of billions of dollars in illicit funds being generated from illegal activities annually.
The Australian government has allocated $166.4 million (US$110 million) of budget funding towards enhancing the country’s anti-money laundering and counter-terrorism financing (AML/CTF) scheme.
Australia has been on a concerning path towards becoming a haven for financial crime, being unable to effectively protect its citizens from the negative effects of money laundering for nearly ten years.
This budget allocation will enable the Australian Transaction Reports and Analysis Centre (AUSTRAC) to provide comprehensive education and guidance for businesses and entities, particularly those who are newly regulated.
AUSTRAC’s responsibility is to regulate illegal financial activities and enforce due diligence on tranche-two entities such as lawyers, accountants, real estate agents, trust, and company service providers, as well as precious metals and stones dealers to report any suspicious transactions.
Australia is one of only five jurisdictions out of over 200 in the Financial Action Task Force (FATF) Global Network that does not regulate tranche-two entities, along with China, Haiti, Madagascar, and the United States.
This leaves Australia at risk of being “grey-listed” by the FATF, which could pose a significant threat to the national economy.
Attorney-General Mark Dreyfus highlighted, “Each year, billions of dollars of illicit funds are generated from illegal activities such as drug trafficking, tax evasion, people smuggling, cybercrime, arms trafficking, and other illegal and corrupt practices.”
Mr. Dreyfus sees these reforms as essential in assisting law enforcement in combating “trans-national, serious, and organized crime” while safeguarding Australians.
Parallel to these reform efforts, the federal government has committed to progressing to the next stage of consultation regarding the AML/CTF reforms.
Real estate money laundering is identified as a significant concern impacting Australia’s overheated housing market by AUSTRAC in a 2015 strategic analysis brief.
In February 2023, the Australian Federal Police (AFP) dismantled a $10 billion Chinese-Australian money laundering syndicate and seized $150 million worth of properties and assets. Real estate made up over half of the value of assets confiscated by the AFP in 2021 and 2022.
Last April, AUSTRAC issued eight infringement notices to businesses and sole traders across various sectors for their failure to report as required by the AML/CTF Act.
AUSTRAC CEO Brendan Thomas emphasized the importance of continued industry engagement in combating money laundering and terrorist financing.
Meanwhile, Mr. Dreyfus criticized past government officials for not meeting the necessary standards to combat criminal misuse of the nation’s financial system.
The Morrison-Joyce government faced scrutiny for not taking money laundering and financial crime seriously, potentially making Australia a hotspot for organized financial crime.
