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In the previous decades, significant initiatives have been taken around the globe to combat terrorism financing and money laundering ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"IrBCuSf1","properties":{"formattedCitation":"(Unger & Busuioc, 2007)","plainCitation":"(Unger & Busuioc, 2007)","noteIndex":0},"citationItems":[{"id":705,"uris":["http://zotero.org/users/local/vDOrLj7p/items/IL254UPT"],"uri":["http://zotero.org/users/local/vDOrLj7p/items/IL254UPT"],"itemData":{"id":705,"type":"book","abstract":""Money laundering is a problem of some magnitude internationally and has long term negative economic impacts. Brigitte Unger argues that today, money laundering is largely linked to fraud and that it is not only small islands and tax heavens that lau","ISBN":"978-1-78100-762-4","language":"en","number-of-pages":"245","publisher":"Edward Elgar Publishing","source":"Google Books","title":"The Scale and Impacts of Money Laundering","author":[{"family":"Unger","given":"Brigitte"},{"family":"Busuioc","given":"Elena Madalina"}],"issued":{"date-parts":[["2007",3,27]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Unger &Busuioc, 2007). For this purpose, the European Union along with US government developed the widespread program AML/CTF ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"LpBUGUiL","properties":{"formattedCitation":"(\\uc0\\u8220{}Risk-Based Approaches to Combating Financial Crime by David A. Chaikin: SSRN,\\uc0\\u8221{} n.d.)","plainCitation":"(“Risk-Based Approaches to Combating Financial Crime by David A. Chaikin: SSRN,” n.d.)","noteIndex":0},"citationItems":[{"id":713,"uris":["http://zotero.org/users/local/vDOrLj7p/items/XZVEAYZW"],"uri":["http://zotero.org/users/local/vDOrLj7p/items/XZVEAYZW"],"itemData":{"id":713,"type":"webpage","title":"Risk-Based Approaches to Combating Financial Crime by David A. Chaikin :: SSRN","URL":"https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1560228","accessed":{"date-parts":[["2019",12,11]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Risk-Based Approaches to Combating Financial Crime by David A. Chaikin: SSRN,” n.d.). The other programs are also developed through the transnational agencies which include FATF the objective of this is to establish interconnected and coordinated transnational agencies ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"8CQ6cz1t","properties":{"formattedCitation":"(Samantha, Raymond, & Liu, 2012)","plainCitation":"(Samantha, Raymond, & Liu, 2012)","noteIndex":0},"citationItems":[{"id":707,"uris":["http://zotero.org/users/local/vDOrLj7p/items/SM2V3I2R"],"uri":["http://zotero.org/users/local/vDOrLj7p/items/SM2V3I2R"],"itemData":{"id":707,"type":"article-journal","abstract":"Purpose – The purpose of this paper is to measure the size of the money laundering and terrorism financing problem, identify threats and trends, the techniques employed and the amount of funds involved to determine whether the information obtained about money laundering and terrorism financing in real‐world environments can be transferred to virtual environments such as Second Life and World of Warcraft. Design/methodology/approach – Analysis of 184 Typologies obtained from a number of anti‐money laundering and counter‐terrorism financing (AML/CTF) bodies to: determine whether trends and/or patterns can be identified in the different phases of money laundering or terrorism financing, namely, the placement, layering and integration phases; and to establish whether trends and/or behaviours are ubiquitous to a particular money laundering or terrorism financing Type. Findings – Money launderers and terrorism financers appeared to have slightly different preferences for the placement, layering and integration techniques. The more techniques that are used, the more cash can be successfully laundered or concealed. Although terrorism financers use similar channels to money launderers, they do not utilise as many of the placement, layering and integration techniques. Rather, they prefer to use a few techniques which maintain high levels of anonymity and appear innocuous. The sums of monies involved in money laundering and terrorism financing vary significantly. For example, the average maximum sum involved in money laundering cases was AUD 68.5M, as compared to AUD 4.8 for terrorism financing cases. Originality/value – This paper provides some insight into the relationship between predicate offence, the predominant techniques utilised in carrying out that offence and the sums of money involved.","container-title":"Journal of Money Laundering Control","DOI":"10.1108/13685201211194745","ISSN":"1368-5201","issue":"1","page":"85-111","source":"Emerald Insight","title":"An analysis of money laundering and terrorism financing typologies","volume":"15","author":[{"family":"Samantha","given":"Maitland Irwin Angela"},{"family":"Raymond","given":"Choo Kim‐Kwang"},{"family":"Liu","given":"Lin"}],"issued":{"date-parts":[["2012",1,1]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Samantha, Raymond, & Liu, 2012). In 2005, when FATF did its third review on Australia terrorist financing and money laundering it was found that it does not comply with all forty recommendation with nine special recommendation ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"RA7ekxIY","properties":{"formattedCitation":"(Rosdol, 2007)","plainCitation":"(Rosdol, 2007)","noteIndex":0},"citationItems":[{"id":711,"uris":["http://zotero.org/users/local/vDOrLj7p/items/YBXFWVI5"],"uri":["http://zotero.org/users/local/vDOrLj7p/items/YBXFWVI5"],"itemData":{"id":711,"type":"article-journal","abstract":"Purpose – To examine if recent changes to the law and practice of certain offshore financial centres (OFCs) means that some OFCs now have more stringent anti-money laundering measures in place compared to their “onshore” counterparts. To further explore the allegation by some that there is a dual standard in terms of the pressure applied to OFCs on the one hand and “onshore” jurisdictions on the other. Design/methodology/approach – The analysis will focus on the Crown Dependencies and the British Overseas Territories of Bermuda and the Cayman Islands. The “onshore” jurisdictions include the UK, the USA and Australia. Comparison of the implementation of the FATF 40 Recommendations (using the most recent IMF Assessments), trust and company services legislation, and the “Know Your Customer” requirements. Findings – The results show that the Crown Dependencies and the selected Overseas Territories are not only keeping up with the USA, the UK and Australia but in many cases “outdoing” the AML/CFT regimes of these onshore jurisdictions. Research limitations/implications – Comparison limited to only certain OFCs and “onshore” jurisdictions. There is a two year difference between the IMF assessments for the OFCs and for the onshore jurisdictions. Future research would include the results of the second phase of the OFC Assessment Program and IMF assessments due in the next few years. Originality/value – This paper examines a very topical area of financial crime based on the most recent data available.","container-title":"Journal of Money Laundering Control","DOI":"10.1108/13685200710763498","journalAbbreviation":"Journal of Money Laundering Control","page":"337-351","source":"ResearchGate","title":"Are OFCs leading the fight against money laundering?","volume":"10","author":[{"family":"Rosdol","given":"Alexa"}],"issued":{"date-parts":[["2007",8,14]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Rosdol, 2007). For that reason, Australia is introduced with new legislation as well as amendments were made based on concerns raised by FATF ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"lVDYeb0Y","properties":{"formattedCitation":"(\\uc0\\u8220{}Money laundering in Australia 2011 | AUSTRAC,\\uc0\\u8221{} n.d.)","plainCitation":"(“Money laundering in Australia 2011 | AUSTRAC,” n.d.)","noteIndex":0},"citationItems":[{"id":709,"uris":["http://zotero.org/users/local/vDOrLj7p/items/8DXS8D34"],"uri":["http://zotero.org/users/local/vDOrLj7p/items/8DXS8D34"],"itemData":{"id":709,"type":"webpage","title":"Money laundering in Australia 2011 | AUSTRAC","URL":"https://www.austrac.gov.au/business/how-comply-guidance-and-resources/guidance-resources/money-laundering-australia-2011","accessed":{"date-parts":[["2019",12,11]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Money laundering in Australia 2011 | AUSTRAC,” n.d.).There was the perception within the review of FATF that the previous policies were cumbersome.
The financial institution of Australia implemented the risk-based approach for money laundering through devising the financial programs related to money laundering. The risk management strategies are applied to the reduction of money laundering. But the challenge is that this approach can only minimize money laundering potential risks. However, the challenge is that it does not provide any guarantee that money launders would not use the financial institution services or products. The risks related to money laundering remain even in those situations where the financial institutions are based on the regulatory requirements as well as applied the risk management best practices. Though the most efficient method for allocating resources and setting priorities are used for combating money laundering.
Since 1989, the money laundering international standards have been developed which is the powerful intergovernmental body established under G8 auspices. The FATF is based on 35 member countries which include Australia as well. They have the authority to blacklist any country and can even implement financial sanctions. FATF also implement these standards to Australia by several legislations which include the Anti-money laundering Act. The AML has several elements which include the monitoring procedures for the detection of suspicious and unusual transactions. Customer identification is necessary for this act to avoid terrorists and criminals to become customers. All the suspicious transaction must be reported such as the report of fund transfer as well as the other important cash reports. The conduct of money laundering is regarded as criminalization. It is the fact that the number of suspicious activities and the matter of transaction are increased not only in Australia but globally as well. The main idea of AML act is that all the private sector must evaluate the crime vulnerabilities that are referred as illegal. It is the responsibility of the government to develop reporting schemes which are regarded as suspicious activities. In Australian law, all the organization that provides services to people will become legal only if they must implement the appropriate CTF or AML program. For enhancing the Australian standards with international AML or CTF standards it is required to implement other administrative and legislative policies.
References
ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Money laundering in Australia 2011 | AUSTRAC. (n.d.). Retrieved December 11, 2019, from https://www.austrac.gov.au/business/how-comply-guidance-and-resources/guidance-resources/money-laundering-australia-2011
Risk-Based Approaches to Combating Financial Crime by David A. Chaikin: SSRN. (n.d.). Retrieved December 11, 2019, from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1560228
Rosdol, A. (2007). Are OFCs leading the fight against money laundering? Journal of Money Laundering Control, 10, 337–351. https://doi.org/10.1108/13685200710763498
Samantha, M. I. A., Raymond, C. K., & Liu, L. (2012). An analysis of money laundering and terrorism financing typologies. Journal of Money Laundering Control, 15(1), 85–111. https://doi.org/10.1108/13685201211194745
Unger, B., &Busuioc, E. M. (2007). The Scale and Impacts of Money Laundering. Edward Elgar Publishing.
