Criminals are exploiting Australia’s real estate market and complex company structures to hide and move illicit money – it’s something financial crimes regulator AUSTRAC says it sees regularly.
From today, tens of thousands more businesses are now covered by Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws, including real estate agents, lawyers, conveyancers, accountants, and dealers in precious metals and stones.
These sectors play a critical role in transactions that can be exploited by organised crime, including the purchase of property and the use of trust and company structures to disguise the origin and ownership of funds.
The laws are a major expansion and step forward in the fight against financial crime.
AUSTRAC CEO Brendan Thomas said they are focussed on where criminals are actively laundering money.
“We see criminals targeting areas like real estate and professional services to move and hide illicit money, often using trust and company structures to make it harder to detect,” Mr Thomas said.
“Bringing these sectors into the regime is about closing those gaps – putting more scrutiny on high-risk transactions and stopping dirty money at the point it enters the system.
“This means more eyes on the ground where we know criminal exploitation occurs, helping us detect suspicious behaviour earlier and disrupt it at scale.
Minister for Home Affairs Tony Burke said the reforms close longstanding gaps and equip Australia to better prevent and disrupt criminal abuse of the financial system.
“We’re entering a new phase in the fight against serious and organised crime, with tens of thousands of businesses now better equipped to shut down channels criminals have exploited for years,” Minister Burke said.
“More than $60 billion in illicit profits is laundered through the Australian economy each year. That money distorts markets like property and legal tobacco, and fuels further criminal activity.”
From 1 July the laws are in force and businesses’ obligations start. This means businesses providing designated services must already have an AML/CTF program and AML compliance officer in place, be training staff and ready to report, but they have until 29 July to enrol with AUSTRAC.
Registration is only required for certain higher-risk services, including remittance and virtual asset services.
Businesses that continue to provide designated services without enrolling risk breaching the law and may face regulatory action.
“We are tracking well for enrolments, but many thousands of businesses are still under time pressure,” Mr Thomas said.
“If your business is captured by these laws, enrolment is not optional – it is a legal requirement.
“We have provided extensive guidance, tools and support to help businesses prepare. The laws are now in force – the expectation is compliance, and the alternative is enforcement.”
AUSTRAC has invested significantly to support industry through the transition, including consultation on new rules, digital enrolment services, updated reporting systems, a new contact centre, and program starter kits.
Support will continue through webinars, updated resources and extended contact centre hours to help businesses embed AML/CTF compliance into their day-to-day operations.
“This is a substantial uplift in Australia’s financial crime defences,” Mr Thomas said.
“Together with industry and our law enforcement partners, we are making Australia a much harder place for criminals to operate.”
AUSTRAC has released two new videos to explain who it is and why its partnerships matter in the fight against financial crime:
