Australia

New Documents

The Australian Transaction Reports and Analysis Centre published its annual report for 2019-2020, highlighting the regulator’s work respond to challenges posed by the COVID-19 pandemic and other key achievements in the fight against financial crime.

The New South Wales Police Force announced that a former National Australia Bank (NAB) employee was arrested and charged with attempting to commit fraud, valued at more than AU$21 million, against a financial institution.

News

Enforcement Actions

The Australian Transaction Reports and Analysis Centre entered into a proposed settlement with the Sydney, Australia-based financial institution for breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

The Australian Transaction Reports and Analysis Centre issued an infringement notice against the Sydney, Australia-based financial institution for its violation of the Anti-Money Laundering and Counter-Terrorism Financing Act, 2006.


Important Facts

  • The U.S. State Department classifies Australia as a jurisdiction of primary concern. Money laundering is the common element in almost all serious and organized crime in Australia. The country’s financial intelligence unit, the Australian Transaction and Reports Analysis Center (AUSTRAC), identifies four primary money laundering methods in the nation: the intermingling of legitimate and illicit financial activity through cash intensive businesses or front companies; the engagement of professional expertise, such as lawyers and accountants; the use of money laundering syndicates to provide specific money laundering services to domestic and international crime groups; and the “internationalization” of the Australian crime environment, a reflection of the pervasive international money laundering ties of Australia-based organized criminal groups. AUSTRAC also notes that money laundering is prevalent in the banking, money transfer and alternative remittance services, as well as gaming and luxury goods’ sectors. Less visible conduits include legal persons and arrangements, cash-intensive businesses, electronic payment systems, cross-border movement of cash and bearer negotiable instruments, international trade and investment vehicles. Trade-based money laundering is also a concern, though stricter border and customs regulations have limited its potential.
  • KYC Covered Entities: Banks; gaming and bookmaking establishments and casinos; bullion and cash dealers and money exchanges and remitters; electronic funds transferors; insurers and insurance intermediaries; securities or derivatives dealers; registrars and trustees; issuers, sellers, or redeemers of traveler’s checks, money orders, or similar instruments; preparers of payroll, in whole or in part in currency, on behalf of other persons; and currency couriers
  • STR Covered Entities: Banks; gaming and bookmaking establishments and casinos; bullion and cash dealers and money exchanges and remitters; electronic funds transferors; insurers and insurance intermediaries; securities or derivatives dealers; registrars and trustees; issuers, sellers, or redeemers of traveler’s checks, money orders, or similar instruments; preparers of payroll, in whole or in part in currency, on behalf of other persons; and currency couriers
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 99 (July 2013 – June 2014); Convictions: 77 (July 2013 – June 2014)
-Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 methodology

Technical Effectiveness
Compliant : 17 High : 1
Largely Compliant : 9 Substantial : 4
Partially Compliant : 9 Moderate : 6
Non-Compliant : 5 Low : 0

Australia's technical compliance was re-rated in a Nov. 8, 2018 follow-up report

BASEL i

Rank : 124/141
Score : 3.84/10

TRANSPARENCY INTERNATIONAL i

Rank : 12/180
Score : 77/100

Tax Justice Network i

Rank : 48/133
Score : 50/100