Lexi Webster
Money laundering is a crime in Australia, and it involves hiding, disguising, or legitimising the true origin and ownership of money used in or derived from criminal activities. It is a critical organised crime risk to the Australian community, and the Australian Federal Police (AFP) has an anti-money laundering strategy that guides its investigation and intelligence teams to disrupt the movement of illicit money and property. The Australian Transaction Reports and Analysis Centre (AUSTRAC) is a key partner in combating money laundering, and the country has a strong regime in place to fight this type of crime.
| Characteristics | Values |
|---|---|
| Money laundering in Australia | A critical risk to the Australian community |
| Criminals involved in money laundering | Responsible for more than twice as much crime-related harm as groups not involved in money laundering |
| Australian Institute of Criminology's estimate for the cost of serious and organised crime to the Australian community in 2020-21 | Up to A$60.1 billion |
| Anti-money laundering strategy | Operation Avarus |
| Investigative arm of the anti-money laundering strategy | Taskforce Avarus |
| Australia's AML/CTF regulator and financial intelligence unit | AUSTRAC |
| Australia's multiagency task force targeting organised criminals laundering money through Australia's financial system and property market | Taskforce Avarus |
| Australian Federal Police's role | Investigating and prosecuting money laundering and serious financial crimes that affect the Commonwealth |
| Australian Federal Police's jurisdiction | Commonwealth crimes (sometimes called federal crimes) and crimes that take place in the Australian Capital Territory |
| Australian Transaction Reports and Analysis Centre's role | Collecting financial intelligence and regulating part of the financial system |
| Money laundering | Hiding, disguising or legitimising the true origin and ownership of money used in or derived from committing crimes |
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What You'll Learn
Money laundering is a crime under Australian law
In Australia, money laundering offences fall under various laws, including the Criminal Code Act 1995 (Cth) and the Proceeds of Crime Act 2002 (Cth). The AFP's anti-money laundering strategy, Operation Avarus, guides its investigation and intelligence teams to combat the movement of illicit funds. The AFP collaborates with other government agencies, such as AUSTRAC (Australian Transaction Reports and Analysis Centre) and the Australian Criminal Intelligence Commission, to identify and disrupt money laundering activities.
Money laundering is a critical risk to the Australian community as it enables organised criminal activity, undermines the financial system and economy, and corrupts individuals and businesses. The Australian Institute of Criminology (AIC) estimates that serious and organised crime, facilitated by illicit financing, cost the Australian community up to A$60.1 billion in 2020-21. Research by AIC and AUSTRAC found that criminal groups involved in money laundering cause significantly more crime-related harm than those not involved in such activities.
To combat this, Australia has a robust regime in place, including the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), which regulates financial institutions, gambling providers, remittance services, digital currency exchanges, and bullion sectors. AUSTRAC, as the national AML/CTF regulator and financial intelligence unit, plays a crucial role in protecting the integrity of Australia's financial system and contributing to the administration of justice.
The Australian Government is committed to strengthening the AML/CTF regime to meet international standards set by the Financial Action Task Force (FATF). The Attorney-General introduced the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024, aiming to expand the regime's scope, modernise digital currency regulations, and increase flexibility to support businesses in preventing financial crimes.
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The Australian Federal Police investigates money laundering
Money laundering is a crime under state, territory, and Commonwealth laws in Australia. The Australian Federal Police (AFP) investigates and prosecutes money laundering and serious financial crimes that affect the Commonwealth. These crimes are often connected with serious and organised crime, including the illegal drug trade, cybercrime, fraud, and corruption.
The AFP's anti-money laundering strategy guides its investigation and intelligence teams to disrupt the movement of illicit money and property. Operation Avarus is the AFP's national anti-money laundering strategy, and Taskforce Avarus is the investigative arm that targets Australian and offshore organised criminals laundering billions of dollars through Australia's financial system and property market.
Taskforce Avarus works with other government agencies and partners, including AUSTRAC (Australian Transaction Reports and Analysis Centre), the Australian Criminal Intelligence Commission, the Australian Border Force, the Australian Securities and Investments Commission, the Australian Taxation Office, and international organisations such as the Financial Action Task Force (FAFT).
The AFP can investigate Commonwealth crimes (federal crimes) and crimes that take place in the Australian Capital Territory. They work with state and territory police services and international law enforcement to combat money laundering and financial crimes. The AFP can also restrain and seize assets linked to criminal activities, including suspected counterfeit currency, under the Proceeds of Crime Act 2002 (Cth).
The Criminal Assets Confiscation Taskforce (CACT) is a Commonwealth initiative that uses intelligence, operations, legal, and other specialist resources to identify and confiscate money and assets gained through illegal activities. The confiscated funds are used to combat crime in Australia and shared with other jurisdictions. The AFP is the lead agency responsible for prosecuting currency-related matters in Australia and works with the Reserve Bank of Australia to examine suspected counterfeit money.
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AUSTRAC is Australia's AML/CTF regulator
Money laundering is a crime under state, territory, and Commonwealth laws in Australia. The Australian Federal Police (AFP) investigates and prosecutes money laundering and serious financial crimes affecting the Commonwealth. The AFP's anti-money laundering strategy guides its investigation and intelligence teams to disrupt the movement of illicit money and property.
AUSTRAC, or the Australian Transaction Reports and Analysis Centre, is Australia's AML/CTF regulator and financial intelligence unit. It was founded in 1989 following the passage of the Financial Transaction Reports Act 1988 and is headquartered in Canberra. AUSTRAC is responsible for detecting and preventing financial crime in Australia and providing regulatory oversight for the country's financial service providers. The agency collects and analyzes reports from banks and other obligated organizations, which it then uses to generate financial intelligence data for criminal investigations. AUSTRAC also ensures compliance with the AML/CTF Act, provides guidance, and takes enforcement action when necessary.
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) is the primary Australian government legislation that regulates AUSTRAC's functions. This Act sets out a range of financial compliance obligations, including anti-money laundering (AML) and counter-financing of terrorism (CFT) reporting rules. For instance, firms must submit Threshold Transaction Reports (TTRs) to AUSTRAC for transactions of AUD 10,000 or more within 10 business days. Additionally, when funds are transferred into or out of Australia, firms must submit an International Funds Transfer Instruction Report (IFTI) to AUSTRAC.
AUSTRAC plays a pivotal role in shaping Australia's AML/CTF policies and ensures that regulations remain effective and relevant. The agency has the power to impose civil penalties, issue infringement notices, and recommend criminal prosecution for non-compliance. AUSTRAC's role is dynamic and evolves to address new financial threats, such as those posed by digital banking and cryptocurrency exchanges.
AUSTRAC's efforts are crucial in combatting money laundering and financial crime in Australia, ensuring the country's financial system remains secure and transparent.
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Money laundering is a critical risk to the Australian economy
The Australian Institute of Criminology (AIC) estimates that serious and organised crime cost the Australian community up to A$60.1 billion in 2020-21, with illicit financing at the centre of most crime types. AIC research, in collaboration with the Australian Transaction Reports and Analysis Centre (AUSTRAC), found that criminal groups involved in money laundering are responsible for more than twice as much crime-related harm as groups not involved in money laundering. The research estimates that every year a criminal group is able to launder funds increases the crime-related harm they cause to the community by 49%.
Money laundering is a diverse activity carried out at various levels of sophistication. It often involves the banking system and money transfer services, but launderers are constantly creating new schemes to avoid detection. For example, they may move money to create complex money trails or break up large amounts of cash and deposit smaller sums in different bank accounts to avoid suspicion.
To combat this, Australia has a strong regime to fight money laundering, including the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). AUSTRAC is Australia's AML/CTF regulator and financial intelligence unit, working with partner agencies and industry sectors to identify patterns of suspicious activity. The Australian Government is committed to improving Australia's AML/CTF regime to ensure it meets international standards and prevents criminals from profiting from their illegal activities.
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Money laundering is linked to other serious crimes
Money laundering is a crime in Australia under state, territory, and Commonwealth laws. It is a process of moving money or property through the economy to disguise its illegal origins or intended criminal purpose. This process is the lifeblood of organised crime, allowing criminals to hide their wealth and fund their operations.
The Australian Federal Police (AFP) has an anti-money laundering strategy called Operation Avarus, which guides its investigation and intelligence teams to disrupt the movement of illicit money and property. The AFP works with other government agencies and partners, including the Australian Transaction Reports and Analysis Centre (AUSTRAC) and the Australian Criminal Intelligence Commission, to combat money laundering activities in Australia.
For example, in a joint investigation by the AFP and AUSTRAC, it was alleged that the Changjiang Currency Exchange in Sydney laundered almost $229 million in three years, including funds stolen from victims of cybercrime. This resulted in the AFP-led Criminal Assets Confiscation Taskforce restraining almost $60 million in assets.
The Criminal Assets Confiscation Taskforce (CACT) is a Commonwealth initiative that aims to identify and remove profits from serious and organised crime. By confiscating money and assets gained through illegal activities, the CACT works to take the profit out of these crimes and disrupt criminal operations.
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Frequently asked questions
Yes, money laundering is a crime in Australia under state, territory, and Commonwealth laws.
Money laundering involves hiding, disguising, or legitimizing the true origin and ownership of money used in or derived from committing crimes. It is a critical risk to the Australian community as it enables serious and organized criminal activity, undermines the financial system and economy, and corrupts individuals and businesses.
Australia has a strong regime to fight money laundering, with the Australian Federal Police (AFP) leading investigations and prosecutions. The AFP's anti-money laundering strategy, Operation Avarus, guides its investigation and intelligence teams to disrupt the movement of illicit money and property. Australia is also a founding member of the Financial Action Task Force (FATF), the global financial crime watchdog, and works closely with other agencies such as AUSTRAC (Australian Transaction Reports and Analysis Centre) to combat money laundering and improve its AML/CTF regime.
