Aussie homes face $12bn+ risk from cashed-up criminals
The multi-trillion dollar Australian real estate market is facing a $12.4bn ‘higher risk’ from criminals that’s set to spark reform of national laws.
The multi-trillion dollar Australian real estate market is facing a $12.4bn ‘higher risk’ from criminals that’s set to spark reform of national laws.
The Australian government has confirmed money laundering laws are set to be reformed to prevent Australian real estate being snapped up by cashed-up criminals to filter an estimated $12.4bn in ill-gotten gains.
MORE: $7k richer every day: Homeowners making millions in their sleep
Home price surges to push more families two hours out of town
This as the Australian Transaction Reports and Analysis Centre released national risk assessment reports on money laundering and terrorism financing on Tuesday, naming real estate as one of the avenues at higher risk despite newer channels emerging for criminals to sink funds into.
It said “launderers still prefer to conduct their operations via traditional methods using cash, banks, luxury goods, real estate and casinos”.
It found “Australia remains an attractive destination to store and integrate criminal proceeds because of its stable political system, open and free economy, independent legal system, well-developed financial services sector and strong real estate market”.
Cash – transfer of value, cash – store of value, luxury goods and domestic real estate were all sectors labelled as “very high” vulnerabilities.
AUSTRAC CEO Brendan Thomas said “we know, through the good work of our colleagues in the Australian Criminal Intelligence Commission, that the value of the domestic Australian drug market is worth at least $12.4bn dollars per year”.
“This money then needs to be laundered through the Australian economy, every single year. And that’s only one type of crime driven by Australian organised crime groups. The exploitation of digital currencies is increasing. This helps criminals move funds quickly, cheaply and with what they perceive as a degree of anonymity.”
Australia’s multi-trillion dollar real estate market has seen major surges since Covid-19 with almost every part of the country seeing major gains and high demand.
Mr Thomas said money laundering was a fundamental enabler of virtually all criminal activity, perpetuating serious crime by enabling criminals to reinvest illicit profits into further crime.
“Crimes like money laundering and terrorism financing erode trust in Australia’s financial system and the security of the Australian population. Criminals might be persistent, but so are we,” he said.
“That’s why AUSTRAC has worked with the national intelligence community, law enforcement and regulatory agencies, together with industry and international financial intelligence units to build these risk assessments.”
“We know there are particular sectors that pose money laundering and terrorism financing risks and are consistently exploited – knowingly and unknowingly – by transnational, serious and organised crime groups to disguise and launder criminal wealth,” he said.
The reforms would see Australia’s anti-money laundering framework simplified and extended to “higher risk services, including professional services provided by lawyers, accountants and real estate agents”.
“These businesses are uniquely positioned to provide insights into suspicious behaviour through the services they provide,” an Austrac statement said.
“Reports from these businesses will help build a more complete picture of money laundering activities that assist law enforcement activities in combating serious and organised crime from child sexual exploitation to scams.”
See the latest PropTrack Home Price Index
The risk assessments were expected to help businesses understand the methods criminals use to launder proceeds of crime or fund extremist violence.
“I encourage businesses to read them, understand how they might be exposed and ensure they have the necessary anti-money laundering and counter-terrorism financing (AML/CTF) measures in place.”
Originally published as Aussie homes face $12bn+ risk from cashed-up criminals