MB has lobbied long and hard for the federal government to begin policing money laundering through property – something it promised to do more than a decade ago.
Yesterday, The Australian reported that state governments may be facilitating money laundering by “chasing” proceeds of Chinese organised crime:
John Langdale, associate professor at the department of security studies and criminology at Macquarie University, said that by approving new casinos and failing to properly monitor money laundering, state governments were effectively encouraging these criminal groups.
Professor Langdale has previously briefed Austrac — the government intelligence agency dealing with money laundering, organised crime and terrorism — on the issue.
“Australian state governments are so keen on getting the taxation revenue, plus the jobs from casinos, that they are pursuing this market, no matter what, and I think it’s just encouraging both crime in Australia and crime in China,” he said. “They are chasing the market that is rife with criminal activity. When I give presentations to law enforcement people, they just roll their eyes when I mention this topic. They can’t tell the state government not to do it, but the state governments throughout Australia have got their eyes on this market”…
His presentation outlined a “Vancouver model” where money was laundered through Canadian casinos, “junket” operators and Canadian real estate.
The federal government is just as duplicitous since it refuses to implement anti-money laundering legislation into property. So, if you are a terrorist or a crook and you have wads of cash, you can buy a house and no one will say anything as you launder your money through lawyers, real estate agents and accountants – all of whom are not required to declare suspicious transactions under current (non-existent) legislation.
The federal government’s inaction comes despite a veritable conga-line of reputable international organisations urging Australia to meet its global commitments to implement anti-money laundering rules for real estate gatekeepers.
As well as frequent reports suggesting that money laundering through Australian property is rife, for example:
Real estate agents report unprecedented numbers of overseas’ buyers of residential and commercial property in Melbourne and Sydney paying cash…
An estimated 70 per cent of Chinese buyers pay in cash, according to Transparency International, an international non-government organisation targeting corruption.
Heck, the federal government conducted stakeholder consultations on regulating money laundering through real estate in 2008, 2010, 2012, 2014, and 2017 – all of which amounted to nought.
Why? Because lobbying pressure from industry rent-seekers has neutered the federal government. Just consider “Highrise” Harry Triguboff’s comments last 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 and reduce industry profits.
The feds, the states – neither care. Both are happy to see dirty money flowing into Australian property, thus supporting values. Forget the young Australians priced-out of owning a home, or Australia’s international obligations to police money laundering.
