Funds boosted to help Austrac chase terror finances

Australia’s financial intelligence agency will embark on a $40m recruitment drive to beef up counter-terrorism investigations.

Justice Minister Michael Keenan. Picture: AAP

The country’s financial intelligence agency will embark on a $40 million recruitment drive to beef up its anti-money laundering and counter-terrorism investi­gations in the wake of the Commonwealth Bank terrorism finance scandal.

The move by the Turnbull government to expand the powers of Austrac and its resources follows moves by the agency to broaden its case against the CBA, which was already facing 53,000 alleged breaches of laws requiring it to ­report or disrupt terrorism financiers and criminal syndicates.

The decision to beef up the abilities of Austrac also comes after the successful civil case brought against Tabcorp in March. The gaming giant was fined $45m for breaching money-laundering and counter-terrorism financing laws after failing to notify the regulator of more than 100 suspicious transactions over a five-year period.

The Australian understands that the $43m funding boost will be accounted for in the government’s half-yearly budget update to be released today.

Justice Minister Michael Keenan said the extra resources for Austrac would widen the agency’s investigative powers to include digital currencies such as Bitcoin that, while considered “low risk”, were increasingly being used for laundering and terrorist financing.

“This government takes a zero-tolerance approach to serious noncompliance which can hinder our law enforcement agencies on bringing criminals who finance terror and launder money to justice,’’ Mr Keenan said.

“Austrac’s strengthening of its serious noncompliance team will also see 14,000 businesses across Australia educated on how to ­improve their anti-money-­laundering and counter-terrorism measures.

“A further $36m in net regu­latory relief annually will also be provided to low-risk industries such as the cash-in-transit sector by simplifying and streamlining regulatory requirements.

“Stopping the movement of money to criminals and terrorists is a vital part of our national security defences and we expect every single regulated entity to comply with our comprehensive regime.’’

Austrac last week expanded its allegations against the CBA, with claims that it had continued to breach the law requiring it to ­report suspicious transactions, ­despite having been hit with allegations in August that it had been in breach 53,000 separate times.

The CBA claimed it had taken the issue seriously, but Austrac claimed in further allegations that it had failed to address the issue with its own systems.

The CBA has admitted to 53,506 breaches, claiming it had been a systems error in its smart deposit machines and failed in its risk assessment requirements.

An Austrac spokeswoman last week said: “I can confirm that in ­relation to the ­alleged contraventions under ­section 82 of the act by CBA, that, as of the date of lodgement of ­Austrac’s amended statement of claim (that is, today), Austrac’s ­contention is that the issue has not been resolved and the ­contravention therefore remains current.”

Among the claims against CBA was the failure to pick up and ­report the transactions of two suspected terrorist who managed to channel $3m through the bank.