November 17, 2021

Editorial

Commentary

TIA flags Australian money laundering controls

Transparency International Australia (TIA) has highlighted the inadequacy and lack of efficacy of Australia’s anti-money laundering (AML/CTF) regime as dirty money flows in from the Asia-Pacific Region, Africa and Russia.

TIA made the case in a submission to the Legal and Constitutional Affairs Reference Committee Inquiry into the adequacy of and efficacy Australia’s anti-money laundering and counter-terrorism financing regime. It said:

When examining the adequacy and efficacy of our AML/CTF regime the following needs to be considered:

• Australia is seen as an attractive destination for foreign proceeds,particularly corruption related proceeds flowing into real estate from the Asia-Pacific region, as well as from as far away as Africa and Russia.

• Australia has low compliance with the FATF recommendations.

• The Australian Transaction Reports and Analysis Centre (AUSTRAC) is entirely reliant on the information provided by reporting entities in order to detect money ML, financially motivated crime, and offences committed against the AML/CTF Act by those same reporting entities.

• The AUSTRAC collects data and intelligence from only a very small subset of those entities that are being used to commit or facilitate financially motivated crime and ML.

• Systemic and large-scale breaches have occurred undetected by the AUSTRAC. A significant amount of ML is now occurring in a wide variety of methods that are outside of the AUSTRAC’s current capacity to detect.

See the full submission here: Transparency-Internationa-Australia_Adequacy-and-Efficacy-of-Australias-AML-CTF-Regime_Submission_Final.pdf