Money Laundering in Australia: Laws, Defenses, and Initiatives

This report provides an overview of money laundering in Australia, defining the process and its various components, including drug trafficking, extortion, corruption, and fraud. It examines the legal framework, focusing on domestic laws designed to detect, deter, and prosecute money laundering crimes, and discusses the penalties for offenders. The report also highlights the role of international standards and the Financial Action Task Force (FATF) in combating money laundering. Furthermore, it analyzes the weaknesses of the Australian government's approach, such as limited coverage of real estate agents, accountants, and lawyers, along with a lack of specific regulations and cost-effectiveness concerns. The report details anti-money laundering initiatives, including the Criminal Code's extra-territorial jurisdiction, and the involvement of key agencies like the Australian Federal Police, Australian Taxation Office, and AUSTRAC. The conclusion emphasizes the serious threat money laundering poses to the economy and the need for effective regulations, while acknowledging the current limitations in achieving desired outcomes. References to relevant literature are included.

MONEY LAUNDERING IN AUSTRALIA

INTRODUCTION
Money Laundering is the process by
which the money which has been
acquired through any kind of illegal
activity is laundered into being clean
which can be used effectively (Hopton
2016).

• Money laundering consists of Drug
Trafficking
• It also consists of any kind of Extortion
• It includes Corruption
• It is also a kind of Fraudulent act

• If there is an absence of legislation
• In order to evade Taxation
• To make the black money turn into
clean money

MONEY LAUNDERING
• Through the process of placement the
money is put into a legal system
• The money is layered where the source of
the money is hidden
• The money after being kept in a legitimate
account can be withdrawn which would be
used for legitimate purposes which is
known as integration.

DEFENCES TO PREVENT MONEY LAUNDERING
• There are certain domestic
laws in Australia.
• It tries to detect, deter and
prosecute the crimes related
to money laundering.
• There are penalties imposed
on the offenders who try to
commit the offence.

DEFENCES TO PREVENT MONEY LAUNDERING
• Australia has tried to combat money
laundering crime and these are
regulated by International Standards
on Combating Money Laundering and
the Financing of Terrorism &
Proliferation and the Financial Action
Task Force (D'Souza 2017).

WEAKNESSES OF AUSTRALIAN GOVERNMENT
• It is done in a systematic manner
• It aims to hide the money
• It aims to shift the money to a
legitimate system
• It tries to invest and use the money in
some legitimate purpose

WEAKNESSES OF AUSTRALIAN
GOVERNMENT
• It does not cover any kind of real-
estate agents or any kind of
accountants or lawyers.
• There are not much regulations or
guidelines which have been provided
or enforced by the government for
money laundering specifically.
• It is not considered to be cost
effective (Pol 2018).

ANTI-MONEY LAUNDERING INITIATIVES
• The offence of money laundering which is
considered to be a serious criminal offence is also
having extra territorial jurisdiction under the
criminal code.
• The Australian Federal Police, Australian Taxation
Office and the Australian Transaction Reports and
Analysis Centre which is also known as AUSTRAC
look after the money laundering crimes
• The penalties for the offences of money
laundering includes twenty five years of
imprisonment under the Criminal Code or a fine
of 315,000 Australian dollars or 1500 penalty
units (Choo 2015).

CONCLUSION
• That money laundering is a serious offence
as it poses a threat on the economy of a
country.
• It is the process by which the money that
has been obtained through illegal activities
are put in a legitimate system in order to
make it clean which can be used for
legitimate purposes.
• Therefore, it poses a threat on the economy
of a nation and it is a serious offence.
• There are various regulations and rules that
have been enforced by the government in
order to prevent such gruesome acts from
happening but the consequences have not
been effective.

REFERENCES
• Hopton, D., 2016. Money laundering: a concise guide for all business. Gower.
• Masciandaro, D. ed., 2017. Global financial crime: terrorism, money laundering and
offshore centres. Taylor & Francis.
• Chong, A. and Lopez‐De‐Silanes, F., 2015. Money laundering and its regulation.
Economics & Politics, 27(1), pp.78-123.
• Alexander, R.C.H., 2016. Insider dealing and money laundering in the EU: law and
regulation. Routledge.
• Levi, M., 2015. Money for crime and money from crime: Financing crime and laundering
crime proceeds. European Journal on Criminal Policy and Research, 21(2), pp.275-297.
• Liss, C. and Sharman, J.C., 2015. Global corporate crime-fighters: Private transnational
responses to piracy and money laundering. Review of International Political Economy,
22(4), pp.693-718.
• D'Souza, J., 2017. Terrorist financing, money laundering, and tax evasion: Examining the
performance of financial intelligence units. CRC Press.