Australia announced $166 Million AML reform. The Australian government is allocating $166.4 million in the upcoming federal budget to bolster its anti-money laundering and counter-terrorism financing (AML/CTF) measures, confirmed by Attorney General Mark Dreyfus. The move aims to strengthen regulatory oversight and keep the country off the Financial Action Task Force’s (FATF) “grey list.”
Australia Announces $166 Million AML Reform
Australia’s government is determined to enhance their AML processes with billions of illicit dollars each year generated by financial crime networks involved a variety of crimes ranging from drug trafficking and tax evasion to people smuggling and cybercrime.
As a result of recent failings, Australia is lagging behind and failing to meet the standards required to combat financial crime and close down networks exploiting Australia’s financial market. These shortcomings are increasing the risk of Australia becoming a gold pot for criminal networks involved in money laundering.
This alarming news is damaging but this is the first step in the right direction in tackling the problems. Australian authorities are determined to protect the economy and tackle criminal networks head on.
Attorney General’s Warning
In a candid statement, Mr Dreyfus acknowledged Australia’s vulnerability to grey-listing, largely due to regulatory gaps in overseeing specific financial entities. He highlighted that Australia is “one of only five jurisdictions out of more than 200” not yet regulating crucial “tranche-two entities” including lawyers, accountants, trust and company service providers, real estate agents, and precious metal dealers.
This regulatory shortfall places the nation at risk of grey-listing, potentially harming the economy. Acknowledging the concerns has started the process of implementing change to protect not only businesses across Australia but the economy.
Funding Allocation and Plans
The newly allocated funds will empower the Australian Transaction Reports and Analysis Centre (AUSTRAC) to implement a comprehensive regulatory regime, ensuring industries comply with new guidelines and responsibilities. Additionally, the funding will enable AUSTRAC to provide businesses, particularly those newly regulated, with education and guidance for compliance.
AUSTRAC are taking similar steps to other authorities across the world. Similar to the UK’s National Crime Agency, their approach is proactive but also stressing the importance of education and ensuring relevant people and businesses are fully understand what they need to do.
Similarly, AUSTRAC are also offering guidance for compliance which the Solicitors Regulation Authority have done for law firms across England and Wales, writing to over 1,000 firms offering them guidance on compliance so they do not run the risk of a fine in the future. This approach is a positive step in getting businesses and firms to understand the importance of having effective AML procedures in place.
Australia’s approach is similar to other countries across the world who are also tackling AML issues head on. Leading authorities across the globe are determined to ensure their economics are protected from financial crime networks and money laundering. There is an effective plan in place and with the funds now available, Australia are set to clamp down on regulation breakers and criminal networks by enhancing their protocols and procedures.
Addressing Past Shortcomings
Dreyfus attributed the current challenges to the previous government’s failure to enforce adequate AML/CTF regulations, leaving Australia exposed to criminal exploitation of its financial systems. In response, the Albanese Government has initiated a new consultation phase to reinforce reforms, signifying a renewed commitment to address long-standing issues.
Protecting the Economy and Citizens
By stepping up AML/CTF measures, the government aims to safeguard the economy and prevent Australia from becoming a safe haven for financial crime.
These measures are a positive step forwards given the changes being made across the globe by other countries who are not only enhancing their AML measures but tackling financial crime head on and closing down major crime networks.
