Empirical Study on Money Laundering
The Australian Institute of Criminology issued a Consultancy Report that examines the effects of money laundering on the harm associated with organised crime. The study links data on organised crime groups known to Australian law enforcement with suspicious matter reports submitted to the Australian Transaction Reports and Analysis Centre (AUSTRAC). Key takeaways are:
Organised crime groups involved in money laundering, and groups that laundered larger amounts of money, are responsible for more crime-related harm than other groups. Money laundering precedes crime-related harm, indicating that the harm is due to the reinvestment of illicit funds.
Larger amounts of money are laundered through the real estate and gambling sectors, relative to other sectors.
Groups with an international presence are likelier to launder money, indicating the important role that offshore connections and transactions play in money laundering.
31% of crime groups have at least one professional facilitator among their membership. This finding highlights the significant role that professional facilitators play in laundering the proceeds of crime made by organised crime groups. Overall, groups with professional facilitators are linked with much higher-value suspicious transactions.
Experts often emphasise the importance of anti-money laundering and counter-terrorism financing (AML/CTF) measures in disrupting the cycle of crime. This study from the Australian Institute of Criminology provides empirical evidence to demonstrate that reducing the amount of money laundered by organised crime groups would limit their capacity to reinvest illicit funds into future criminal enterprises. Furthermore, it underscores the importance of AML/CTF requirements for real estate transactions and the stricter obligations placed on the gambling sector, as proposed in the AML/CTF Amendment Bill.
What’s Next?
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