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Some “fun” reading from austrac and friends https://www.austrac.gov.au/sites/default/files/2019-07/sa-brief-real-estate_0.pdf https://www.austrac.gov.au/sites/d

Some “fun” reading from austrac and friends https://www.austrac.gov.au/sites/default/files/2019-07/sa-brief-real-estate_0.pdf https://www.austrac.gov.au/sites/default/files/2019-07/sa-br... “Shockingly” real estate agents and solicitors arent covered by AML/KYC here. I believe the same problems with opaque beneficial ownership extends to trusts as well. Other countries have similar challenges, but at least theres some duty to report etc. Criminals may be drawn to real estate as a channel to launder illicit funds due to the: » ability to buy real estate using cash » ability to disguise the ultimate beneficial ownership of real estate » relative stability and reliability of real estate investment » ability to renovate and improve real estate, thereby increasing the value. Criminals are also motivated to buy property for further profit or lifestyle reasons. Compared to other methods, money laundering through real estate – both residential and commercial – can be relatively uncomplicated, requiring little planning or expertise. Large sums of illicit funds can be concealed and integrated into the legitimate economy through real estate.

jamhan 4y ago
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) covers AML in Australia. Tranche (Part) 1 was implemented immediately. Tranche 2, covering real estate agents (among others) was supposed to follow reasonably soon after. It's now been ~17 years and it's still not implemented. [1] In those years, the Australian property market boomed and states like New South Wales with its Stamp Duty tax generated billions ($9.379 billion for the 2020-21 financial year) in revenue [2] Last week's arrests [3] are a drop in the bucket. [1] https://insight.thomsonreuters.com.au/business/posts/tranche-too-hard-australia-edges-forward-with-glacial-aml-ctf-law-reform-agenda https://insight.thomsonreuters.com.au/business/posts/tranche... [2] https://www.abc.net.au/news/2021-06-20/stamp-duty-adds-9-379-billion-to-state-budget/100229554 https://www.abc.net.au/news/2021-06-20/stamp-duty-adds-9-379... [3] https://www.abc.net.au/news/2023-02-03/afp-money-laundering-bust-highlights-real-estate-vulnerability/101923160 https://www.abc.net.au/news/2023-02-03/afp-money-laundering-...

jamhan 4y ago

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) covers AML in Australia. Tranche (Part) 1 was implemented immediately. Tranche 2, covering real estate agents (among others) was supposed to follow reasonably soon after. It's now been ~17 years and it's still not implemented. [1] In those years, the Australian property market boomed and states like New South Wales with its Stamp Duty tax generated billions ($9.379 billion for the 2020-21 financial year) in revenue [2] Last week's arrests [3] are a drop in the bucket. [1] https://insight.thomsonreuters.com.au/business/posts/tranche-too-hard-australia-edges-forward-with-glacial-aml-ctf-law-reform-agenda https://insight.thomsonreuters.com.au/business/posts/tranche... [2] https://www.abc.net.au/news/2021-06-20/stamp-duty-adds-9-379-billion-to-state-budget/100229554 https://www.abc.net.au/news/2021-06-20/stamp-duty-adds-9-379... [3] https://www.abc.net.au/news/2023-02-03/afp-money-laundering-bust-highlights-real-estate-vulnerability/101923160 https://www.abc.net.au/news/2023-02-03/afp-money-laundering-...