Australia Introduces Major Bill to Strengthen Anti-Money Laundering Rules

Australia has unveiled a significant new bill aimed at closing loopholes in the country’s anti-money laundering (AML) regulations, which have long been exploited by criminals. The legislation, announced by Attorney General Mark Dreyfus, will expand AML rules to cover a range of previously excluded professions, including lawyers, accountants, trust and company service providers, and real estate professionals.

Dreyfus urged all members of parliament to support the bill, admitting that Australia had been one of only five out of 200 jurisdictions worldwide that failed to include these "tranche two" professions in its AML framework. He highlighted the potential consequences of this oversight, warning that Australia risked being grey-listed by the Financial Action Task Force (FATF) in its upcoming evaluation. Such a designation, he noted, would “not only be damaging to our international reputation,” but could also lead to significant economic harm, as countries on the FATF’s grey list tend to attract less international investment.

"In 2015 the FATF found that Australia had failed to comply with a number of critical standards," Dreyfus explained. "In particular, Australia had failed to extend our anti-money laundering and counter-terrorism financing regime to 'tranche-two' entities, including lawyers, accountants, and real estate agents."

The attorney general’s office further stressed that criminals are increasingly “exploiting these sectors” to hide illicit wealth and launder money. According to the office, the new legislation offers an opportunity to “simplify, clarify and streamline the AML regime,” which will make it easier for businesses to understand and implement effective measures to combat financial crime. “The reforms will also lead to better quality financial data and make it easier for businesses to protect themselves from misuse by criminals,” the statement added.

Additionally, the bill will extend AML regulations to cover virtual asset service providers, a sector the government said is currently “exploited by serious and organised crime groups to launder the profits of their crimes and hide the origin of funds."

With these comprehensive reforms, Australia aims to close the gaps that have allowed criminal enterprises to thrive, while also bringing its AML framework in line with international standards.

By fLEXI tEAM