Aussie, Chinese regulators fight money laundering

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has teamed up with its Chinese counterpart the China Anti-Money Laundering Monitoring and Analysis Center to fight against money laundering and terrorism financing.

The two government agencies have been negotiating the agreement since early 2015 and have now signed a formal memorandum of understanding.

China is now Australia’s largest training partner, with around $77 billion flowing between the two countries in the most recent financial year — up from $42 billion in FY12.

“Given China’s global trade volumes, regional dynamics and strategic importance, access to Chinese financial intelligence data will significantly enhance AUSTRAC’s analytical capacity and directly assist Australian law enforcement, border and regulatory agencies,” AUSTRAC CEO Paul Jevtovic said.

“China also stands to substantially enhance the breadth and quality of financial intelligence in its own fight against illegal money flows.”

He said collaboration under the MoU will commence immediately, with the agencies initially focused on exchanging high value transaction reports when there is an identified connection between China and Australia.

Future areas of potential collaboration may also involve facilitating analyst exchanges between the two agencies, as well as taskforces and joint operational projects aimed at cracking down on money laundering.

AUSTRAC separately announced the launch of a dedicated online contact form for start-ups and FinTech businesses in the market to easily seek advice on Australia’s anti-money laundering and counterterrorism financing regulatory regime.

“We strive to be a regulator that is known for supporting and contributing to innovation and the benefits it can bring to the Australian community,” Jevtovic said.

“We recognise that industry is our first line of defence and we continue to work in partnership to address the global challenge of countering serious and organised crime. Importantly, we want to create an environment that is both conducive to innovation within industry, but also resilient enough to safeguard the integrity of Australia’s financial system and the economy.”

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