AUSTRAC - 2024 National Risk Assessment
AUSTRAC is Australia's regulator for anti-money laundering and counter-terrorism financing (AML/CTF). As the AML/CTF watchdog for Australia, AUSTRAC publishes a national risk assessment to inform of the country's vulnerabilities to facilitating money laundering and/or terrorism financing.
AUSTRAC National Risk Assessment
AUSTRAC - National Risks
Australia’s watchdog for money laundering compliance has updated its national risk assessment. The AML/CTF watchdog provides a national risk assessment for all businesses in Australia to be informed of ML/TF risks to manage. Australia’s AML/CTF national risk assessment reflects the current and emerging challenges that Australia faces in combating money laundering and terrorism financing.
Australia ML/TF Risks
In the 2024 updated national risk assessment, AUSTRAC recognises Australia’s inherent risks and attractiveness as a country targeted to facilitate serious financial crime by washing illicit funds.
Our strong and stable economy makes Australia an attractive destination for money laundering. Criminals continue to exploit established legal channels such as banks, remittance service providers and casinos to hide their proceeds of crime. However, they are also increasingly using digital currency exchanges and cryptocurrency, due to the anonymity they allow.
Terrorism Financing Risks
The financial crime watchdog also has oversight of businesses and financial institutions to ensure they play their part in reducing risk of terrorism financing.
The AML/CTF national risk update includes a detailed assessment of Australia’s exposure to terrorism-financing threats and vulnerabilities.
Importance of Risk Analysis
The AUSTRAC AML/CTF national risk assessment assesses crimes that generate illicit proceeds, as well as the methods and channels used to launder funds in Australia.
AUSTRAC AML/CTF Risks
The Australian AML/CTF national risk assessment has identified historic methods of committing money laundering continue to be used.
Exploitation of channels that have historically been used to launder funds continue to be popular. This includes facilitating or ‘washing’ dirty funds through (a) banks, (b) money or value transfer agencies (money remitters),, (c) casinos). Assets targeted include high-value assets such as precious metals, vehicles and real estate, also continue to be used to facilitate integration of dirty funds.
Company and Trust Services
Company and Trust Service providers continue to be inherent high risk for facilitating complex business structures. These third party providers are also used as nominated persons to establish personal and corporate banking arrangements which assist to launder funds and conceal wealth.
