New laws to stem drug dealers, corrupt officials and dirty money from heating up Australia's real estate market

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AML/CTF News

Money Laundering,Real Estate

Buying a home? Soon you won't have as much competition from drug dealers, corrupt officials and criminals with dirty money thanks to new laws and a boost to enforcement.

A crackdown on money laundering means real estate agents, lawyers and accountants will need to report suspicious transactions.

Mark Dreyfus hopes the new laws, and a boost to AUSTRAC, will help Australia catch up in the fight against money laundering."As a result of the former government’s failure to act, Australia is falling short of meeting the standards required to combat criminal abuse of our financial system, and at increased risk of becoming a haven for money laundering."

Here it is "laundered", converted from funds that can be linked to criminal activity into "clean" income that appears disconnected from its source. This will mean, for example, education programs for real estate agents on what to do when they're confronted with a suspicious transaction.A new report from Transparency International Australia reveals millions of dollars of dirty money could be flowing from the impoverished nation of Cambodia to Australia annually, with gaps in the law making Australia's real estate sector an attractive destination for money laundering.

KordaMentha partner Alice Saveneh-Murray, who works in the field of financial crime, says signing up to Tranche 2 laws will make the nation safer. Speaking before the full details of the announcement were available, Ms Pilkington noted that substantial investment and training would be needed.

 

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