We risk being a dirty money haven: Geoffrey Robertson
Geoffrey Robertson slams the AFP for failing to probe a suspected Russian money-laundering operation using Aussie banks.
International human rights lawyer Geoffrey Robertson QC has criticised the Australian Federal Police over its failure to probe a suspected Russian mafia money-laundering operation using Australian banks, saying Australia risks becoming known as a soft touch for foreign criminals.
His remarks come amid growing demands from both sides of politics that the AFP launches an investigation into the allegations.
On Tuesday, The Australian revealed that the AFP and Austrac had declined to pursue detailed evidence of the alleged crimes handed to it by billionaire human rights activist Bill Browder more than two years ago because of “the significant resources required to investigate the matter relative to other existing investigations and proceedings”.
“It does seem to be an appalling failure to do their duty,” said Mr Robertson, who has been deeply involved in drafting new anti-money laundering legislation for Australia. “What is extraordinary is they appear to have ignored probably the most momentous heist in history.”
The $US3.5m ($4.6m) transferred into Australian banks is believed to be part of a $US230m fraud on the Russian treasury perpetrated by officials linked to President Vladimir Putin.
Bank records seen by The Australian show the money was paid into 11 Australian accounts from foreign accounts that received the proceeds of the fraud.
The $US230m theft and subsequent murder of Russian lawyer Sergei Magnitsky, who exposed the crime, have sparked Magnitsky laws around the world to stop corrupt officials transferring money through the international banking system.
An Australian parliamentary committee two weeks ago recommended similar legislation here.
On Tuesday, several members of the committee called upon the AFP to investigate Browder’s evidence. “I would encourage the AFP to reconsider the matter, this is very important,” said Liberal senator Eric Abetz.
“It does need a rethink by the AFP because the message we send to the world by their public statement is that if you want to launder $4m through Australia courtesy of corrupt activities in your home country, guess what, the AFP think they’ve got more important issues to deal with.”
Fellow Liberal senator Concetta Fierravanti-Wells told The Australian that enactment of Magnitsky laws in Australia alone was not sufficient — law enforcement authorities had to be properly resourced to undertake investigations and to implement a sanctions regime. “Given the nature of the allegations relating to Russian mafia money laundering, further investigation by relevant authorities should certainly be undertaken.”
Labour MP Julian Hill agreed: “The concerns … raised are serious, grounded in evidence, and the AFP should investigate whether a crime has been committed in Australia, working with Austrac as needed.”
Opposition home affairs spokeswoman Kristina Keneally said the federal government was a “soft touch” for money laundering. “It beggars belief Scott Morrison believes it is OK for the AFP to ignore serious money laundering and terrorism financing crimes that 16 other countries have investigated simply because they don’t have the resources,” she said. “Money laundering and terrorism financing has been an afterthought for too long under this government, with successive Liberal ministers missing their own deadlines to improve anti-money laundering and counter-terrorism financing laws.”
The Magnitsky committee’s recommendation includes a draft bill written by Mr Robertson and a likely guide for any law, but the jurist was shocked that the crime that sparked the proposed legislation had been ignored by Australian law enforcement bodies.
“An innocent man was beaten to death to protect this corrupt money and it’s extraordinary that they’re not aware of it,” he said.
“This $US230m crime inspired laws in the US, in the UK, now in Europe: 26 countries of Europe have signed up to Magnitsky laws.
“What it proves is $US3.5m ended up in our banks and unless we pass the Magnitsky law and start activating it, we will be a haven for dirty money.
“The word will get around among the kleptocrats: ‘They don’t look very closely at money transmissions to Australia.’
“The federal police and Austrac must actually get it into their heads that this is an important thing they’ve got to follow up.”
His draft Magnitsky bill for Australia provides that “enforcement and investigation of money laundering would be done by an existing regulator with proven capacity to administer a funds tracking system. The designation of targeted sanctions and implementation of travel bans and asset seizures or freezing would require input and co-ordination with agencies and organisations including AFP and Austrac.”
Given their reluctance to investigate the Russian money-laundering dossier, Mr Robertson would not express confidence in either body to take on the role without seeing “fundamental change” in their approach.
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