Australia’s Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Measures

Risk and General Situation

Australia has identified key money laundering (ML) risks, including:

• Domestic and foreign organized crime groups
• Illicit drugs
• Frauds
• Tax evasion

The country also understands the risk of terrorist financing (TF), particularly through disrupting domestic terrorism plots.

Overall Level of Compliance

Australia has a strong institutional framework for combating ML, TF, and proliferation financing. However, some improvements are needed in preventive measures and supervision, especially for designated non-financial businesses and professions (DNFBPs).

Assessment of Risk, Coordination, and Policy Setting

Australia’s Strengths:

• Good understanding of most main ML risks
• Comprehensive coordination to address them

Areas for Improvement:

• Some key risks remain unaddressed
• Authorities focus more on predicate crime rather than money laundering
• Lack of a developed national policy setting out what the overall AML/CTF system is meant to achieve or how its success should be monitored

Financial Intelligence, ML, and Confiscation

Australia’s Strengths:

• Develops and disseminates good quality financial intelligence to law enforcement bodies, customs, and tax authorities through AUSTRAC
• Well-functioning financial intelligence unit (FIU)

Areas for Improvement:

• Limited use of AUSTRAC information by law enforcement as a trigger to commence ML/TF investigations

Need for Improvement

Major improvements are needed in areas such as:

• Addressing risks from abuse of complex corporate structures and real estate
• Developing a national policy setting out what the overall AML/CTF system is meant to achieve
• Improving supervision of DNFBPs

Overall, while Australia has made significant progress in combating ML and TF, there are still areas that require improvement to strengthen its AML/CTF framework.