us

216.73.216.23

Australia’s Money Laundering Failures Increase Risk of Russia Sanctions

News Image Mar 14, 2022-02

Australia is facing embarrassment on the possibility of being placed on the FATF’s “grey list” for failing to meet international anti-money laundering standards.

Inadequate money laundering laws in Australia create a risk of the country becoming a safe haven for cash belonging to Russian oligarchs who are looking to steer clear of sanctions during the war in Ukraine.

Australis is one of only three countries in the world, aside from Madagascar and Haiti, where lawyers, accountants, and real estate businesses are still not under the umbrella of anti-money laundering and counter-terrorism finance laws (AML-CTF).

Failing to take action on a promise it made eight years ago to bring lawyers, accountants, and real estate businesses into the AML-CTF system, the Australian government is now facing an urgency to act before global authorities put Australia on a “grey list” of nations that don’t meet international standards. 

According to experts, the possibility of being placed on a “grey list” will embarrass Australia, stain the reputation of its banks, and make it tougher for businesses to raise money overseas.

“We have just in the last couple of weeks, through the processes we follow, managed to identify a few Russian entities with money in this space,” says Andrew Jackson, who is the Australian head of First AML, a company that provides customer screening and other anti-money laundering services.

“Now whether they are legitimate or not, I don’t know,” he says.

“It is an appealing area for someone from Russia right now. I think some of the sanctions that have been put in place are making it harder, but yes, if we don’t have wider legislation, we are always going to be running the risk that people who need to move illegal funds around look at Australia, because it’s just an easier target.”

Suggested read: AUSTRAC to Audit Three Bell Financial Group Entities to Evaluate AML/CFT Compliance

Related Posts

News

Malaysia to push mandatory ID checks on social media to curb online scams

Malaysia to push mandatory ID checks on social media to curb online scams

Explore More

News

Michigan Lawmakers propose that Age Verification be mandatory to access pornography

Michigan Lawmakers propose that Age Verification be mandatory to access pornography

Explore More

News

Brazil enacts new law to regulate children’s use of social media and digital platforms

Brazil enacts new law to regulate children’s use of social media and digital platforms

Explore More

News

ChatGPT to introduce age checks after the UK’s teen death sparks lawsuits

ChatGPT to introduce age checks after the UK’s teen death sparks lawsuits

Explore More

News

Australia’s Under-16 Social Media Ban allows a margin of error in age verification

Australia’s Under-16 Social Media Ban allows a margin of error in age verification

Explore More

News

New York outlines age checks and parental consent for minors under the SAFE for Kids Act

New York outlines age checks and parental consent for minors under the SAFE for Kids Act

Explore More

News

Wolfsberg Group Urges Financial Institutions to Adopt AI for Monitoring Suspicious Activities

Wolfsberg Group Urges Financial Institutions to Adopt AI for Monitoring Suspicious Activities

Explore More

News

Malaysia to push mandatory ID checks on social media to curb online scams

Malaysia to push mandatory ID checks on social media to curb online scams

Explore More

News

Michigan Lawmakers propose that Age Verification be mandatory to access pornography

Michigan Lawmakers propose that Age Verification be mandatory to access pornography

Explore More

News

Brazil enacts new law to regulate children’s use of social media and digital platforms

Brazil enacts new law to regulate children’s use of social media and digital platforms

Explore More

News

ChatGPT to introduce age checks after the UK’s teen death sparks lawsuits

ChatGPT to introduce age checks after the UK’s teen death sparks lawsuits

Explore More

News

Australia’s Under-16 Social Media Ban allows a margin of error in age verification

Australia’s Under-16 Social Media Ban allows a margin of error in age verification

Explore More

News

New York outlines age checks and parental consent for minors under the SAFE for Kids Act

New York outlines age checks and parental consent for minors under the SAFE for Kids Act

Explore More

News

Wolfsberg Group Urges Financial Institutions to Adopt AI for Monitoring Suspicious Activities

Wolfsberg Group Urges Financial Institutions to Adopt AI for Monitoring Suspicious Activities

Explore More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started