Money laundering crackdown looms in federal overhaul

Wednesday at 06:40 AM

Money launderers will soon have a harder time funnelling dirty cash through Australia as part of a federal government crack down.

A Senate inquiry has recommended parliament pass laws that would impose further regulations on professions such as lawyers and accountants to prevent the businesses being used as a front for money laundering or financing terrorism.

A report into the laws, which was handed down on Wednesday, said the changes would help bring Australia more into line with international standards.

The measures would be a significant reform and protect industries from serious crimes, Labor Senator Nita Green said.

“It will reduce complexity and close regulatory gaps in the current regime to ensure that Australia has an effective system to deter, detect and disrupt illegal flows of money internationally and protect Australian businesses from exploitation by criminals,” she said.

The global financial watchdog in 2015 found Australia had failed to comply with a number of standards.

The watchdog had singled out that Australia had failed to extend anti-money laundering laws to at-risk industries.

The coalition said it had significant concerns with the money laundering law overhaul because to the cost.

The laws would mean a regulatory cost burden of almost $14 billion over the coming decade, Senator Paul Scarr said.

“The coalition does not believe that this bill can be passed in its current form due to the $13.9 billion cost for small and family businesses, which will ultimately be passed onto consumers,” he said in the Senate report.

“During the Albanese government’s cost-of-living crisis, this is something Australians can ill-afford.”

The opposition had urged the government lower the financial burden for businesses to comply with the updated regulations.

Greens senator David Shoebridge also called for exemptions for barristers who are briefed through solicitors.

“This would avoid unnecessary and costly duplication, provide clarity and reduce confusion,” he said.

The Senate report made eight recommendations for the money laundering laws, which included bringing forward the date for when enforcement of some of the offences can begin.

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