Australia Allocates $166M to Strengthen AML Measures, Aims to Avoid FATF 'Grey List'

Australia has announced a budget allocation of $166.4 million to bolster its anti-money laundering (AML) and counter-terrorism financing (CTF) efforts, aiming to avoid placement on the Financial Action Task Force's (FATF) "grey list." Attorney General Mark Dreyfus revealed the investment, acknowledging the risk of Australia facing grey-listing by FATF due to regulatory gaps.

Dreyfus emphasized the importance of regulating tranche-two entities such as lawyers, accountants, trust and company service providers, real estate agents, and dealers in precious metals and stones, noting that Australia's failure to do so poses a significant risk to its economy. The investment will enable the Australian Transaction Reports and Analysis Centre (AUSTRAC) to implement the new regime and assist industries in meeting their obligations, while also providing comprehensive education and guidance to newly-regulated entities.

Attributing the regulatory shortcomings to the former government's inaction, Dreyfus highlighted the urgency of reforms to combat criminal abuse of the financial system and mitigate the risk of Australia becoming a money laundering haven. The Albanese Government has initiated consultations on AML/CTF reforms, signaling its commitment to combating transnational crime and protecting Australians.

Dreyfus stressed the critical role of these reforms in supporting law enforcement efforts against serious and organized crime, citing the significant sums of illicit funds generated annually from various illegal activities. The investment underscores Australia's dedication to enhancing its AML defenses and upholding international standards to safeguard its financial integrity. 

By fLEXI tEAM