THE HON MARK DREYFUS KC MP
ATTORNEY-GENERAL
CABINET SECRETARY
MEMBER FOR ISAACS
National Risk Assessments reinforce reforms to anti-money laundering and counter-terrorism financing
AUSTRAC’s National Risk Assessments into money laundering and terrorism financing have again highlighted the need for the Albanese Government’s proposed reforms to Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime.
Each year billions of dollars are generated from illegal activities such as drug trafficking, tax evasion, human trafficking, cybercrime and arms trafficking. The proceeds from these crimes are used to fund further serious crimes such as terrorism and child abuse.
In 2015, the Financial Action Task Force, the global financial watchdog, found that Australia had failed to comply with a number of critical standards. In particular, Australia had failed to extend our anti-money laundering and counter-terrorism financing regime to ‘tranche-two’ entities including lawyers, accountants and real estate agents.
In a separate report released today, the Financial Action Task Force has again singled out Australia for our continued non-compliance with global standards.
Despite these clear warnings that our economy was at risk of being exploited by criminal gangs and terrorists, the former government dragged its heels and failed to do anything of substance for the entire nine years it was in office.
With the total cost of serious and organised crime in Australia exceeding $60 billion, the release of these National Risk Assessments is a wake up call that preventing criminal exploitation of our financial system cannot be just the responsibility of government and law enforcement agencies.
AUSTRAC’s money laundering National Risk Assessment shows that criminals continue to exploit established channels – such as cash, luxury goods, real estate, domestic banks, casinos and remitters – to launder funds in Australia.
The money laundering Risk Assessment also identifies several serious money laundering vulnerabilities that detract from the effectiveness of Australia’s existing anti-money laundering and counter-terrorism financing regime.
The Albanese Government has no tolerance for corruption or illicit financing of any kind. We are committed to strengthening the system to prevent perpetrators financing serious crimes like drug trafficking, child abuse, terrorism and serious organised crime.
We are committed to strengthening Australia’s AML/CTF regime. We intend to expand the regime to certain services, provided by “tranche two” entities, including lawyers, accountants, trust and company service providers, real estate agents and dealers in precious metals and stones. The vulnerabilities exposed by the ongoing exclusion of these sectors from regulation are laid bare in AUSTRAC’s risk assessment. This includes the persistent exploitation of these services by criminal groups to help establish complex business structures and associated banking arrangements to help individuals launder funds and conceal wealth.
We also intend to modernise the AML/CTF Act to ensure it keeps pace with the increasingly digital, instant nature of our global financial system — closing those gaps that we know increasingly sophisticated, professional criminal organisations can exploit.
And we demonstrated our commitment to this action in this year’s Budget, committing $166.4 million to implement these overdue proposed reforms. This investment will enable AUSTRAC to implement the new simplified and expanded regime, including delivering comprehensive education and guidance to support tranche two businesses.
Opposing these reforms enables criminals to continue to engage in drug trafficking, human trafficking, cybercrime, terrorism and child exploitation and to profit from those serious crimes.
Money laundering is not a victimless crime.
We have to act. We cannot afford any further delay.
To read the national risk assessments visit the AUSTRAC website https://www.austrac.gov.au/business/how-comply-and-report-guidance-and-resources/guidance-resources/risk-assessments
Tuesday, 9 July 2024
