Money Laundering

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Real estate agents, lawyers and accountants won't face the toughest new anti-money laundering measures as the federal government has delayed its full crackdown on the professions.
Australia has been promising to introduce comprehensive "tranche 2" laws since 2006 – but the Department of Home Affairs confirmed it will instead seek "phase 1.5" laws as a transitional step.
The laws will clarify aspects of Australia's money laundering offences.
But anti-money laundering experts have warned that failing to crack down on illicit funds flows, including 'hot money' from China, has added significantly to Australia's housing affordability problem, Thomson Reuters head of financial crime intelligence Nathan Lynch said.
There was a <a href="https://www.afr.com/brand/chanticleer/oecd-warns-of-money-laundering-through-australian-real-estate-20171219-h07emq" target="_blank">highly critical report</a> from the international Financial Action Task Force (FATF) three years ago that warned Australia's real estate sector was at significant risk for money laundering.
"The government is currently preparing a bill to amend the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act)," a spokesperson from the Department of Home Affairs told Fairfax Media.
"Timing for introduction is subject to the parliamentary schedule."
The new legislation is expected to include changes to the "tipping-off" rules and other secrecy provisions to allow more sharing of information between the government and private sector, including with foreign partners.
The bill will also simplify reporting requirements for cross-border movements of cash or bearer negotiable instruments.
But the government confirmed the laws will not include the long-awaited coverage of lawyers, accountants and real estate agents.
The Australian Criminal Intelligence Commission (ACIC) estimates organised crime costs the Australian community $36 billion each year and "the most common professions exploited by organised crime include lawyers, accountants, financial and tax advisers, registered migration agents, stockbrokers, real estate agents and customs brokers", their report said.
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Anti-money laundering legislation delay a let-off for estate agents

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Westpac are being sued by money laundering watchdog AUSTRAC for a deficient oversight of its anti-money laundering financing obligations.
The Australian Transaction Reports and Analysis Centre allege Westpac have breached the Anti-Money Laundering and Counter-Terrorism Financing (AML-CTF) Act more than 23 million times.
Westpac allegedly failed to report over 19.5 million international funds transfer instructions to AUSTRAC over a a five year period.
Westpac's annual report noted the investigation by AUSTRAC, but the bank advised they are "currently unable to reliably estimate."
Westpac updated their shareholders on the ASX this morning.
"Westpac Group has this morning received a statement of claim from AUSTRAC commencing civil proceedings in relation to alleged contraventions of Westpac's obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act", the update read.
"Westpac has previously disclosed (including in its Full Year 2019 reporting) that it had self-reported a failure to report a large number of international funds transfer instructions to AUSTRAC and that AUSTRAC was also investigating a number of other areas relating to Westpac's processes, procedures and oversight.
"Westpac is currently reviewing AUSTRAC's statement of claim and will issue a further statement to the ASX once it has been assessed."
AUSTRAC's chief executive officer Nicole Rose said at Parliament House described Westpac's behaviour as "serious and systemic non-compliance".
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Money Laundering

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