Transparency International Australia welcomes the introduction of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 to address the key gaps in Australia’s money laundering regime, by Attorney-General Mark Dreyfus today.
The reforms aim to make it harder for organised crime gangs, corrupt officials and criminals to launder their proceeds of crime in Australia and will extend the AM/CTF obligations to high-risk professions such as real estate professionals, professional service providers (such as lawyers, conveyancers, accountants, and trust and company service providers), and dealers in precious metals and precious stones.
Importantly, the reforms will help ensure compliance with international standards set by the Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog.
“Financial crime impacts all of us,” said Clancy Moore, CEO of Transparency International Australia.
“Certain high-risk sectors in Australia have been like a sieve when it comes to allowing dirty money flow into the country, distort our economy, and rob local communities.”
“The recent Australian Institute of Criminology and AUSTRAC report showed once again that Australia’s real-estate sector is the top destination on TripAdvisor for organised crime gangs to launder their dirty money.”
“The report also showed that when organised crime gangs have ‘enabler’ professions in their ranks – lawyers, real-estate agents and accountants – then they are more likely to launder money and larger amounts.”
“Bringing the real-estate sector, alongside other gatekeeper professions like accountants, lawyers into our AML / CTF regime will make it much harder for criminals to profit from their proceeds of crime and boost resilience in our financial system.”
Ensuring Australia is compliant with FATF standards is essential, as these standards set a strong international benchmark. “Being grey-listed by the FATF in 2026 would be akin to a sledgehammer to our economy,” said Moore. “Countries that are grey listed average a 7% drop GDP and 3% in foreign direct investment.”
“Criminals often use shell companies, opaque corporate structures and sham directors to hide in the shadows, avoid regulation and commit financial crime. So we look forward to the government also passing laws for beneficial ownership transparency.”