Moves to combat terrorism financing and money laundering

Reforms are being introduced to stamp out money laundering and terrorism financing.

The federal government has announced the first stage of reforms to the Anti-Money Laundering and Counter-Terrorism Act, increasing the powers of the Australian Transactions and Reporting Analysis Centre (AUSTRAC).

These reforms follow on from extensive consultation with industry and our national security agencies.

The Bill will close a regulatory gap by bringing digital currency exchange providers under the remit of AUSTRAC, as well as strengthen AUSTRAC’s investigation and enforcement powers.

It will also increase police and customs officers’ search and seizure powers at the border, and provide regulatory relief to industry through the deregulation of low-risk industry sectors.

These reforms are designed to balance the threat of organised crime and terrorism financing to the Australian community by ensuring that excessive regulation does not hinder the financial sector.

The Bill provides net regulatory relief to industry of $36 million annually, with the digital currency exchange sector being regulated for the first time. It also deregulates low-risk industries such as cash-in-transit, which is already subject to state and territory licensing requirements.

Stopping the movement of money to criminals and terrorists is a vital part of the government’s national security defences, and regulated businesses in Australia are expected to comply with the reforms.

The AUSTRAC-hosted Fintel Alliance, launched by Minister Keenan in March 2017, is a world-first private-public partnership to combat money laundering and terrorism financing. Through the Fintel Alliance, industry and government agencies co-design solutions that will transform the fight against terrorism financing and organised crime.

Image credit: ©stock.adobe.com/au/Comugnero Silvana

Follow us on Twitter and Facebook