Real estate agents, lawyers and accountants used to launder the money of drug dealers and terrorist-funders will be the target of new laws to stop the flow of dirty money in Australia.
Attorney-General Mark Dreyfus has announced strict reporting obligations for about 100,000 new entities. The move, which will include $165 million in new funding, has been resisted for years by real estate associations and other professional services lobby groups, who argue it would be costly and risk client confidentiality.
Attorney-General Mark Dreyfus during question time last month.Credit: The Sydney Morning Herald
Only casinos, bullion dealers and some solicitors are now required to report suspicious transactions of more than $10,000, making Australia one of only five countries whose rules do not extend to lower-level risks such as real estate agents.
“Let me be very clear: opposing these reforms means aiding and abetting the criminal abuse of our financial system by drug traffickers, people smugglers, terrorists and those who exploit and abuse children,” Dreyfus will say in a National Press Club speech, according to speaking notes.
“These criminals are constantly looking for new ways to exploit our systems and launder the proceeds of their crime through Australian real estate and our economy more generally.
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“Opposing these reforms enables criminals to continue to engage in drug trafficking, terrorism and child exploitation and to profit from those serious crimes. No legitimate business wants to assist the laundering of money from these crimes.”
Taking on property agents and lawyers over this issue has proved difficult before. The former Coalition government took no action after a 2016 report urging tougher laws and warning of Chinese nationals using the proceeds of crime to buy Australian property.
Last year, this masthead reported on an alleged Chinese-Australian money laundering organisation that moved an estimated $10 billion offshore while amassing a blue-chip Sydney mansion property portfolio.