Illicit Financial Flows

Purpose

To strengthen Australia’s anti-money-laundering (AML) regime, and prevent the flow of funds derived from corruption into and out of Australia, including by:

  • extending, auditing and enforcing ‘customer due diligence’ or ‘know your customer’ (KYC) requirements on the part of banks, financial institutions and key professions and industries, including real estate; and
  • establishing a public register showing the beneficial (i.e. real) owners of companies;
  • ensuring accessible information on ‘politically exposed persons’ (PEPs) or government officials known or suspected of having benefited from corruption, to ensure transparency in their movements and prevent international transfer of any ill-gotten gains.

The Problem

International transfer, laundering and hiding of proceeds of corruption is basic to making that corruption possible, with devastating effects on political, social and economic development in the “victim” communities – including Australia and developing countries in Africa, and in our own region, Papua New Guinea (PNG) and Pacific countries.  Illicit financial flows can also have many negative effects in recipient countries like Australia, including funding organised crime, contributing to local corruption, and distorting real estate and luxury goods markets (see Louis de Koker, The Conversation, 13 October 2015).

International transfer, laundering and hiding of proceeds of corruption is basic to making that corruption possible, with devastating effects on political, social and economic development in the “victim” communities – including Australia and developing countries in Africa, and in our own region, Papua New Guinea (PNG) and Pacific countries.  Illicit financial flows can also have many negative effects in recipient countries like Australia, including funding organised crime, contributing to local corruption, and distorting real estate and luxury goods markets (see Louis de Koker, The Conversation, 13 October 2015).

For TI Australia’s full statement of the problem and what Australian governments, business and other stakeholders need to do about it, download our position paper. Download Position Paper – Illicit Financial Flows

Position Paper 2 – January 2016