Australia fails to comply with global anti-money laundering standards: Dreyfus
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The news: Australia is continuing to fall behind global standards on anti-money laundering and counter terrorism financing measures, with casinos, cash, domestic banks, luxury goods and real estate proving continued channels for money laundering, the Attorney-General has said.
The context: In a speech to the National Press Club outlining the money laundering National Risk Assessment (NRA), Attorney-General Mark Dreyfus said Australia is at risk of being "grey-listed" by the international Financial Action Task Force for failing to meet global standards.
Grey-listed countries face increased monitoring from the Paris-based intergovernmental group to address deficiencies in national systems to counter money laundering and terrorism financing.
The second NRA released today by AUSTRAC — Terrorism Financing in Australia: National Risk Assessment — found that retail banking, remittance and exchanging cash were the preferred avenues to move funds.
AUSTRAC said most of the illicit funds moved to overseas terrorist organisations and affiliated groups and noted that social media and crowdfunding platforms had become integral to fundraising terrorist activities.
In 2015, the Financial Action Task Force found Australia's failure to extend anti-money laundering and counter-terrorism financing laws to 'tranche-two' entities such as lawyers, accountants and real estate agents meant the country failed to comply with global standards.
The government is consulting on changes to anti-money laundering law changes, which would include an expansion to the tranche-two sectors. A second round of consultation wrapped up last month, receiving more than 120 submissions.
What they said: "We will continue to work with all stakeholders to ensure that the reforms are fit for purpose, and that businesses are supported and equipped to detect and prevent criminals from misusing their services," Dreyfus said.
"Opposing these reforms means aiding and abetting the criminal abuse of our financial system by drug traffickers, people smugglers, terrorists and those who exploit and abuse children," he added.
Also speaking at the National Press Club, AUSTRAC CEO Brendan Thomas said: "The exploitation of digital currencies is increasing. This helps criminals move funds quickly, cheaply and with what they perceive as a degree of anonymity".
The sources: Attorney-General, AUSTRAC media release
