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Homebuyers bidding against criminals using property to launder money, Senate hears

Australians heading to auctions this weekend may very well be outbid by monetary criminals who’re using the property market to launder cash, an inquiry has heard.

The Senate has been informed Australia is a “honey pot destination” for organised crime and its outdated legal guidelines are permitting widespread cash laundering within the property sector and contributing to inflated home costs.

It is inspecting the power of Australia’s money-laundering and counter-terrorism financing legal guidelines, which haven’t undergone a considerable replace since they had been launched in 2006.

On Wednesday, representatives from the Australian Criminal Intelligence Commission, Australian Federal Police, Home Affairs and the monetary crimes regulator Austrac appeared earlier than the Senate.

Camera IconAustralians are bidding against cash launderers at property auctions who’re helped by outdated monetary crime legal guidelines, an inquiry has heard. NCA NewsWire/Joel Carrett Credit: News Corp Australia

Stefan Jerga, the top of the AFP legal belongings confiscation activity power, stated “without any histrionics” there have been instances when potential homebuyers confronted off against cash launderers.


“Of course there are examples of there not being a level playing field when you have a well financed organised crime individual bidding against honest hard working people,” he stated.

AFP Deputy Commissioner Ian McCartney stated the power had seized $116m value of property of a complete $187m in legal belongings it restrained within the final monetary 12 months.

He stated Australia was a profitable marketplace for organised crime due to its excessive demand for unlawful substances.

“We’re a fairly affluent society and we’re prepared to pay a high price. Around the world it’s probably the highest price,” he stated.


Real Estate
Camera IconThe Senate has been informed Australia is a “honey pot vacation spot” for organised crime and its outdated legal guidelines are permitting widespread cash laundering within the property sector. Phoenix Naman Credit: Supplied

Mr McCartney stated the AFP was supportive of increasing anti-money laundering legal guidelines to cowl actual property brokers, accountants and attorneys.

The Senate has this week heard Australia will stay a “destination of choice” for unlawful funds until its laws is introduced into line with the remainder of the world.

Labor Senator Deborah O’Neill, who referred to as for the inquiry to be established earlier this 12 months, stated Australia was one in every of three nations, together with Haiti and Madagascar, to agree to however not to introduce a “second tranche” of reforms.

The reforms would develop Australia’s legal guidelines to regulate “gatekeeper” professions who, unwittingly or in any other case, can be utilized to allow the laundering of cash or the financing of terrorism.


The legal guidelines may oblige actual property brokers, attorneys and accountants to register with Austrac and report “suspicious matters” beneath the identical anti-money laundering regime as casinos and gold bullion sellers.

In their submissions to the inquiry, the Real Estate Institute of Australia and the Law Council each opposed the tranche two reforms, citing prices for small companies and constraints on authorized privilege.

The Senate heard on Wednesday that the federal authorities carried out a feasibility examine into the reforms about 5 years in the past however is but to implement them.

Labor Senator Kim Carr stated Australia’s progress was like “Waiting for Godot”, referencing the Samuel Beckett play through which two characters wait fruitlessly for a person who won’t ever arrive.

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