Australia’s efforts to combat financial and serious crime have been significantly enhanced with the release of two comprehensive national risk assessments on money laundering and terrorism financing by AUSTRAC. These assessments provide a detailed understanding of the scale, sophistication, and threats posed by these crimes within Australia.
Money laundering acts as a critical enabler for virtually all forms of criminal activity. By allowing criminals to reinvest illicit profits into further crimes, it perpetuates serious offences.
“Crimes like money laundering and terrorism financing erode trust in Australia’s financial system and the security of the Australian population. Criminals might be persistent, but so are we,” said AUSTRAC CEO, Mr. Brendan Thomas.
To develop these risk assessments, AUSTRAC collaborated with national intelligence agencies, law enforcement, regulatory bodies, industry stakeholders, and international financial intelligence units. This joint effort aimed to capture a comprehensive picture of money laundering and terrorism financing activities across Australia.
Strengthening Australia’s AML/CTF regime
The newly released National Risk Assessments (NRAs) are pivotal in bolstering Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime. This regime is a crucial component of the national cooperative approach to countering serious and organised crime.
“The NRAs will help strengthen Australia’s AML/CTF regime, which is a key component of the national, cooperative approach to countering serious and organised crime. It has been a joint effort that everyone should be proud of,” said Mr. Thomas.
Key findings on money laundering
The Money Laundering in Australia: National Risk Assessment revealed that, despite the emergence of new channels, launderers still prefer traditional methods involving cash, banks, luxury goods, real estate, and casinos. The Australian Criminal Intelligence Commission estimated the domestic drug market’s value at $12.4 billion annually, money that needs to be laundered through the economy.
“This is only one type of crime driven by Australian organised crime groups. The exploitation of digital currencies is increasing, helping criminals move funds quickly, cheaply, and with perceived anonymity,” added Mr. Thomas.
Insights on terrorism financing
The Terrorism Financing in Australia: National Risk Assessment identified retail banking, remittance, and cash exchanges as the preferred avenues for moving funds. Most illicit funds are directed to overseas terrorist organisations and affiliated groups, with social media and crowdfunding platforms becoming integral to fundraising activities.
Guidance for businesses
Mr. Thomas emphasised the importance of businesses understanding the methods criminals use to launder money or fund extremist violence. He encouraged businesses to read the assessments, understand their exposure, and implement necessary AML/CTF measures.
The money laundering risk assessment also highlighted sectors highly vulnerable to exploitation but not covered by the current AML/CTF framework. These include professional services provided by lawyers, accountants, and real estate agents. The Australian Government has proposed reforms to extend the AML/CTF framework to these higher-risk services.
“These businesses are uniquely positioned to provide insights into suspicious behaviour. Reports from these businesses will help build a more complete picture of money laundering activities, aiding law enforcement in combating serious and organised crime from child sexual exploitation to scams,” Mr. Thomas said.
Key takeaways
AUSTRAC’s new national risk assessments support regulated businesses in understanding, identifying, and managing money laundering and terrorism financing risks, helping them meet their AML/CTF obligations.
