Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That the following matter be referred to the Legal and Constitutional Affairs References Committee for inquiry and report by 2 December 2021:

The adequacy and efficacy of Australia's anti-money laundering and counter- terrorism financing (AML/CTF) regime, with particular reference to:

(a) the extent to which the Australian Transaction Reports and Analysis Centre:

(i) responds to and relies upon reporting by designated services, and

(ii) identifies emerging problems based on this reporting;

(b) the extent to which Australia's AML/CTF regulatory arrangements could be strengthened to:

(i) address governance and risk-management weaknesses within designated services, and

(ii) identify weaknesses before systemic or large-scale AML/CTF breaches occur;

(c) the effectiveness of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the Act) to prevent money laundering outside the banking sector;

(d) the attractiveness of Australia as a destination for proceeds of foreign crime and corruption, including evidence of such proceeds in the Australian real estate and other markets since the enactment of the Act;

(e) Australia's compliance with the Financial Action Task Force (FATF) recommendations and the Commonwealth Government's response to:

(i) applicable recommendations in applicable FATF reports, and

(ii) the April 2016 Report on the statutory review of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and associated rules and regulations;

(f) the extent to which adherence with FATF recommendations prevents systemic and reputational risks to Australia, the Australian economy, and Australia's capacity to access international capital;

(g) the regulatory impact, costs and benefits of extending AML/CTF reporting obligations to designated non-financial businesses and professions (DNFBPs or 'gatekeeper professions'), often referred to as 'Tranche two' legislation;

(h) the extent to which:

(i) DNFBPs take account of money laundering and terrorism financing risks, and

(ii) the existing professional obligations on DNFBPs are compatible with AML/CTF reporting obligations; and

(i) any other related matter.

Jonathon Duniam (Tasmania, Liberal Party, Assistant Minister for Forestry and Fisheries) Share this | Link to this | Hansard source

I seek leave to make a short statement.

Scott Ryan (President) Share this | Link to this | Hansard source

Leave is granted for one minute.

Jonathon Duniam (Tasmania, Liberal Party, Assistant Minister for Forestry and Fisheries) Share this | Link to this | Hansard source

AUSTRAC is a world-leading financial intelligence agency and regulator of anti-money-laundering and counterterrorism financing. In the past five years AUSTRAC enforcement action has resulted in more than $2 billion in civil penalties from Tabcorp, CBA and Westpac. In addition, total tax liabilities raised by using AUSTRAC information in the past decade come to more than $2.6 billion. The government has provided AUSTRAC with an additional $104.9 million over four years to uplift its capability, meaning that more noncompliance can be detected, investigated and addressed. Recently AUSTRAC commenced enforcement investigations against several casino operators and the National Australia Bank. AUSTRAC is continuing to innovate and leverage its domestic and international partnerships to get the best results to detect, prevent and disrupt AML/CTF and other serious crime.

Question agreed to.