Anti-Money Laundering and Counter-Terrorism Financing Regime in Australia: Perceptions of Regulated Businesses in Australia

• NCJ Number: 239555
• Author(s): Julie Walters; Russell G. Smith; Brent Davis; Kim-Kwang Raymond Choo; Hannah Chadwick
• Date Published: 2012
• Length: 99 pages
• Sale Source: Australian Institute of Criminology
• Publication Format: Document (Online); Book (Softbound)
• Publication Type: Survey
• Language: English
• Country: Australia
• Note: AIC Reports Research and Public Policy Series, 117

Annotation

A total of 4,346 Australian businesses that have anti-money laundering and counter-terrorism financing (AML/CTF) obligations under Australian law were surveyed about various issues related to these mandates.

Abstract

The survey addressed four issues: respondents' perceptions of their risks of encountering AML/CTF; procedures they use in complying with the relevant legislation; their estimated costs of compliance; and perceptions of the necessity and effectiveness of AML/CTF mandates. Although there have been estimates of up to $10 billion a year in crime proceeds available for laundering in and through Australia (ACC 2011: 46), approximately 97 percent of respondents perceived that they faced a low risk of crime-related money laundering in the 2008-09 financial year. Almost all respondents believed that they were at low risk of terrorism financing through their institutions in 2008-09. Ninety-five percent perceived that their risk for AML/CTF would remain low for the 2-year period to June 30, 2011. Regarding AML/CTF measures installed by the respondents, a number of related software applications were in place. Some of this software facilitates the identification of customers who are on international lists of proscribed persons and organizations; and other software enables transactions to be tracked and monitored for reporting purposes. The majority of respondents believed that procedures followed by staff and internal audit were effective in monitoring transactions; however, only a few business indicated that software has been effective in monitoring AML/CTF transactions. The median expenditure on AML/CTF compliance was $1,000; 57 percent reported an AML/CTF expenditure of $1,000 or less for the year. Managed funds and superannuation business had the highest median compliance costs of $6,000 in the 2008-09 financial year. Overall, two-thirds of respondents considered their AML/CTF measures to be effective in deterring and/or identifying violators. The survey methodology is described. 30 tables, 26 figures, 43 references, and appended relevant legislative provisions