Australia

New Documents

The Australian Transaction Reports and Analysis Centre, during the month of March, launched a national campaign to educate clubs and pubs on anti-money laundering controls in order to enhance compliance with the jurisdiction’s regulations. 

The Australian Transaction Reports and Analysis Centre called attention to its creation of an intelligence team that monitors and processes financial reporting related to Russia, including suspicious matter reports and international funds transfer reports.

Enforcement Actions

The Australian Transaction Reports and Analysis Centre accepted an enforceable undertaking and remedial action plan submitted by the Melbourne, Australia-based bank after the regulator identified weaknesses in the institution’s anti-money laundering and counterterrorist financing controls.

The Australian Transaction Reports and Analysis Centre ordered the Melbourne-based financial company to appoint an external auditor to assess the anti-money laundering and counterterrorist financing compliance of three of its financial institutions.


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 : 13/110
Score : 3.75/10

TRANSPARENCY INTERNATIONAL i

Rank : 11/180
Score : 77/100

Tax Justice Network i

Rank : 48/133
Score : 50/100