Rahman Ravelli
Rahman Ravelli Solicitors Logo
Rapid Response Team: 0800 559 3500
Switchboard: +44 (0)203 947 1539

About Us Expertise PEOPLE International Legal Articles News Events Contact Us toggle button for phone toggle button for search
Rapid Response Team: 0800 559 3500
Switchboard: +44 (0)203 947 1539
search
Rapid Response Team: 0800 559 3500
Switchboard: +44 (0)203 947 1539
search

Niall Hearty of financial crime specialists Rahman Ravelli assesses the money laundering issues that Australia has to address

Author: Niall Hearty  30 March 2022

Posted in: Anti-Money Laundering.

Australia has been criticised for having lax money laundering laws that could lead to it becoming a haven for Russian oligarchs looking to avoid sanctions.

Australia is one of only three countries that has not yet committed itself to bringing lawyers, accountants and real estate agents under the scope of anti-money laundering and counter-terrorism finance laws (AML-CTF). Many commentators believe this makes the country attractive to the many individuals and entities with links to Russian leader Vladimir Putin who have been sanctioned following Russia’s invasion of Ukraine.

Eight years ago, Australia said it would ensure its AML-CTF system covered these professions, following a recommendation by the international money laundering watchdog, the Financial Action Task Force (FATF). But as this has not happened, Australia could be put on the FATF “grey list” of countries that need increased monitoring as they do not meet international standards. This would damage its reputation but also hamper its financial system.

Recent submissions from accountants and real estate agents to an Australian Senate committee inquiry into its AML-CTF laws show that they are prepared to do some form of reporting to combat money laundering. But lawyers are opposed to such obligations, with the Law Council of Australia saying it would lead to professional privilege and confidentiality being undermined and add to costs.

While there were some changes to the AML-CTF rules last year that aimed to strengthen Australia’s anti-money laundering and terrorist framework, a considerable amount still needs to be done to meet international standards. 

At present, Australia risks the embarrassment of being placed on the  “grey list”. While condemning the Russian government’s action in Ukraine and endorsing the sanctions regime is worthwhile, it is insufficient when a void exists when it comes to the ability to tackle money laundering effectively.

Niall Hearty C 07998

Niall Hearty

Partner

niall.hearty@rahmanravelli.co.uk
+44 (0)203 947 1539 vCard

Download Profile PDF

View Profile

Niall has a wealth of corporate crime expertise and an ability to coordinate global bribery and corruption cases. His achievements in such investigations have made him a logical choice for corporate clients.

Share this article on