Via Reuters:
The federal government is pushing ahead with its expansion of the anti-money laundering (AML) regime, with the financial intelligence agency AUSTRAC set to receive additional powers. The government unveiled changes to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 yesterday, which will also bring digital currency providers within the AML regime.
Michael Keenan, the minister for justice, said the laws would be the first stage of a series of reforms and will broaden the enforcement tools available to the financial crime agency and other policing bodies.
The digital currency sector was celebrating the proposed reforms yesterday, saying they would create a regulatory framework within which innovation could thrive.
“This is something that we have advocated for some years. It will increase safeguards and provide regulatory certainty to digital currency businesses,” said Nick Giurietto, chief executive of the Australian Digital Currency & Commerce Association.
Meanwhile, Australia’s greatest money-laundering bonanza, property, continues to wash money for criminals and terrorists everywhere.
In 2015, the global regulator of money laundering – the Paris-based Financial Action Taskforce (FATF) – released its mutual evaluation report which found Australian homes are a haven for laundered funds, particularly from China.
Then in March this year, Transparency International ranked Australia as having the weakest anti-money laundering (AML) laws in the Anglosphere, failing all 10 priority areas.
And in June, FATF placed Australia on a watch list for failing to comply with money laundering and terrorism financing reforms.
Legislation to implement the second tranche of anti-money laundering (AML) legislation covering real estate gate keepers has been gathering dust in Canberra for a decade.
Accordingly, realtors, lawyers, accountants and other real estate gate keepers are currently exempted from AML requirements. And this exemption has provided an easy avenue for foreign buyers to launder funds through Australian property.
Perversely, if somebody wants to set up an account to place a $100 bet at Sportsbet, or invest $1,000 into a managed fund, then they must provide sufficient identification under the AML Act. But if they want to launder millions of dollars through an Australian home, few questions are asked. It makes absolutely no sense.
The Australian Government is currently undertaking yet another consultation on implementing the second tranche of AML legislation, and has promised to finalise the new rules by the end of this year. However, the Government set similar deadlines 2008, 2010, 2012 and 2014, all of which failed to deliver legislation.
It seems lobbying pressure from industry rent-seekers is largely to blame for the lack of political action. Just consider “Highrise” Harry Triguboff’s comments in July in The AFR regarding Chinese buyers:
“The problem with Australians is they are very slow. They ask their lawyer, they ask their financial adviser, they ask their family, they ask everybody. The Chinese don’t ask anybody, they come off the plane, buy their unit and go.”
In other words, we can’t have proper checks because that would slow down sales.
Here’s more via The Australian:
Justice Minister Michael Keenan will today introduce legislation to strengthen laws against money-laundering and terror financing while also slashing red tape costing Australia’s finance sector $36 million a year.
Mr Keenan told The Australian yesterday that he expected “all regulated businesses” operating in Australia to “comply with our comprehensive regime”.
Except in real estate. He went on:
…“These reforms appropriately balance the threat of organised crime and terrorism financing to the Australian community while ensuring excessive regulation doesn’t hinder our financial sectors,” Mr Keenan said.
Especially in real estate. More:
“The threat of serious financial crime is constantly evolving, as new technologies emerge and criminals seek to nefariously exploit them.
Yeh, in real estate. More:
“These measures ensure there is nowhere for criminals to hide.
Except in real estate. Finally:
Stopping the movement of money to criminals and terrorists is a vital part of our national security defences and we expect regulated business in Australia to comply with our comprehensive regime.”
Except in real estate.
