Labor pushes for Senate inquiry into drug cartel money laundering

An inquiry has been proposed to investigate how Sydney has emerged as a cash-cleaning capital for overseas drug cartels.

Australia’s reputation as a global money-laundering “weak link” would be the focus of a proposed Senate inquiry after Sydney emerged as a cash-cleaning capital for overseas drug cartels.

The call comes amid claims drug cartels were using high-end Australian real estate to wash dirty money.

Federal Labor senator for NSW Deborah O’Neill said she expects to move a vote on Tuesday that the upper house examine “what Australia needs to do so we are no longer one of the world’s money-laundering weak links”.

“Drug kingpins cannot peddle cocaine through Sydney if they cannot cash-in their profits through money laundering, yet the Liberals have repeatedly missed their own deadlines to crack down on money laundering for eight long years,” she said.

If Labor can get the crossbench support required, the inquiry would be run by the Legal and Constitutional Affairs references committee, which the Opposition chairs.

Financial crime risk management consultant Neil Jeans said Australia had a worse performance preventing money laundering than Mexico, Pakistan and Cuba.

Federal Labor senator Deborah O'Neill. Picture: AAP Image

Thomson Reuters’ Asia Pacific manager of regulatory intelligence Nathan Lynch said: “We are the main laggard.”

This was despite bipartisan support since 2006 for extending anti-money laundering regulations to cover lawyers, accountants and real estate agents. All three of those industries are resisting increased regulation.

Mr Lynch said it was “undeniable” cartels were using high-end Australian real estate to wash dirty money.

Home Affairs Minister Karen Andrews said Australia had a “robust” anti-money laundering and counter-terrorism financing regime.

5PM JUNE 23 UPDATE: The Senate has voted unanimously to establish the inquiry.

Originally published as Labor pushes for Senate inquiry into drug cartel money laundering