Australia has historically lacked stringent anti-money laundering legislation, allowing transactions from illegal activities to go unreported in sectors like real estate, legal services, and precious metals and stones trading. Attorney-General Mark Dreyfus emphasizes the need for these reforms to address the billions of dollars generated from illicit activities such as drug trafficking, tax evasion, and cybercrime that have infiltrated the country's financial system.
Campaigners have long called for action to prevent criminals from using Australia's real estate market to launder money, converting illegally obtained funds into seemingly legitimate income. The government's push for Tranche 2 laws, coupled with a $166.4 million budget allocation for enforcement efforts by AUSTRAC, signals a crackdown on financial crimes and organized crime activities that exploit the real estate sector.
Transparency International Australia highlights the attractiveness of Australia as a destination for dirty money over the years, pointing out regulatory gaps that have made the country appealing for money laundering activities. The urgency to address these concerns is underscored by reports revealing significant sums flowing from countries like Cambodia into Australia, raising alarms about potential illicit financial activities taking place within the Australian real estate industry.
The upcoming laws will require increased diligence from various professionals like real estate agents, who will undergo education programs to recognize and report suspicious transactions effectively. The reforms aim to align Australia with international standards for combating money laundering and terrorism financing, bringing the country closer to fulfilling its regulatory obligations. Stakeholders, including industry experts and government officials, are supportive of these measures, anticipating a safer and more compliant environment once the new laws are fully implemented.