Money laundering is a big issue in Australia. The illegal activity has been thriving in the country because it has been catalyzed by the booming property market in the country. Another reason why the activity has found a place in Australia is because successive Australian banks have failed to pass strong anti money laundering laws in the country. The lack of political will by successive Australian governments to extend anti money laundering laws to cover accountants, real estate agents and lawyers (Conklin, 2013).
It is estimated that billions of dollars of dirty money has been laundered by means of building residential property. ANZ’s head of financial crime, Guy Boyd, points a finger at the government both current and past for not extending legislation and also because most of those politicians come from the sectors mentioned (Conklin, 2013).
Internationally, money laundering has become a major issue as the money is said to fund terrorism therefore destabilizing world peace. The main challenge with these at a global level is that there are no common laws adopted by the the world . each country adopts its own laws and enforces them individually, there is no collective approach by countries to this problem (Macdonald, 2013).
The crime known as money laundering originates from what the Federal Law against Organized Crime indicates as operations with resources of illicit origin, in relation to what the Federal Penal Code typifies as the crime of money laundering. Money laundering is known as conduct of conduct to conceal the existence of an illegal source or the use of income derived from an illegal activity,hiding its origin to make it appear legitimate.
The objective of the LAWS is to protect the financial system and the national economy, establishing measures and procedures to detect acts or operations that involve resources of illicit origin. The subjects required to comply with this Law are: Financial entities Individuals and legalpersons who carry out vulnerable activities
Regulatory scheme to control it
In addition to the guidelines of the Official Compliance Provisions, it is proposed: Adopt international instruments and cooperation In order to detect a problem at an early stage, consider offices sent by the Authorities (PGR, FIU, SHCP, etc.). Check black lists like: OFAC, INTERPOOL, FBI, etc. Be up-to-date with the information notes of radio, TV, newspapers and magazines. What is meant by a previous offense in money laundering? There is an illegal primary activity that generates income, which is sought to be reinserted in the legal field. A ruling by the Court of Justice of Australia set precedents and opened the way for the Attorney General's office to charge anyone with money laundering, without the need to detail the origin of the funds questioned (Doherty, 2005).
That is to say that they could accuse by washing without proving the underlying crime, as the vast majority of the legislations require. The resolution of the Supreme Court is directed to a wide conception of what is the autonomy of the crime of washing in that country. "In a process of money laundering we do not have to prove the nomen juris of the crime, when it was committed, who committed it, how it committed it, who is the subject of the crime." It is not that the illegal origin should not be verified of the funds but that this illicit origin must be inferred from the objective and particular circumstances of the case. That is, it is not enough that someone transfers large amounts of cash without a backup for a judge to consider washer, but it needs to be verified by an investigation that is being transported that money in order to conceal its illicit origin, or change its location or destination. Recommendations for financial institutions: The areas of Money Laundering Prevention and Terrorist Financing (PLD and FT) have become identification, monitoring and reporting structures aimed only at complying with applicable provisions and not going further on in its operations analysis. They should focus on seeking money laundering and not on the previous offense. The PLD and FT areas should be more effective, monitoring, extracting and prosecution (Beare & Schneider, 2007).
in order to detect a problem of money laundering according to the autonomous crime at an early stage. And, above all, to consider the reports immediately, offices of the FIU and Authorities (PGR, Local police etc.), as well as the lists of OFAC, INTERPOL, FBI, etc. It has always been a challenge for the financial industry to comply with the change to the regulatory framework because it takes some years to implement the changes in systems, a situation that is solved by having solid laws in the matter and to pursue the autonomy of the crime.
Harms associated with money laundering
The acts, offenses and consequences that are associated with it have been constituted as abhorrent and criminally prosecutable, and it is therefore increasingly pertinent to determine with greater skill the source, form and cunning in which those who commit their lives to commitcrimes,inordertomitigateitseffects.
As society is organized and specializes in the mechanisms of study, prevention and investigation of any criminal activity, as well as the form who are dedicated to cleaning money, criminals and organizations; they are obliged to make their activity an increasingly creative and diversified work. The passage of time has shown us that it is possible to observe broadly a high probability of acting in contexts through which money laundering is possible and the management of organized crime focuses on always locating new washing mechanisms.
The regulations have gone above the banking context, reaching other areas of the economies of nations, such as informal economies, independent professionals, pensions, securities, insurance, etc. However; this problem grows and mutates with more speed than the time with which the control mechanisms manage to perceive; sometimes some believing that the ways to detect it are already identified, close to explore other mechanisms that can facilitate money laundering, when licit and formal business are mixed with illicit and informal businesses (Grosse,2001).
The effort is large but not sufficient, the various entities subject to control must make efforts and analysis with open mind about the possible ways that an organization and / or criminal would use to do illegal business, with the products offered by the obligated subject.
The foregoing forces to evaluate and identify more precisely what in the context of money laundering has been called "typologies", or "warning signs" or said in the words of this server "indicators of fraud" that is more appropriate for some non-banking areas, such as insurance.
It is important to analyze this issue with a broad vision in view of the fact that the greatest efforts have been focused on controlling movements and bank transfers; which makes a lot of sense, since the ultimate goal of money launderers is to get the dirty cash into their accounts and mobilize it with freedom.
Notwithstanding the foregoing; is already, to a great extent a subject surpassed by the criminal organizations and, they have diversified their activities in such a way that does not generate doubts or suspicions when their money crosses the banking controls and for that reason, they need to disguise the forms of generate clean money in small and informal businesses, investing dirty money that by the level of negotiations do not go through controls, this we know is not a novelty today.
Thus, if we analyze and observe international and local standards a little, virtually all refer their controls to the banking context; which I repeat, it makes a lot of sense if the washers went directly to the banks to deposit their dirty money, but the reality makes it necessary to look further and verify that many alternative mechanisms are used to hide and eliminate suspicions.
Recommendations of the International Financial Action Task Force (FATF).As we know, the FATF is the highest international body that concentrates and directs efforts in the prevention of money laundering and terrorism financing, a group of which Australia is a member and it presides as of June 2010 for a period of one year .The FATF has issued 40 recommendations on money laundering prevention and 9 recommendations for financing terrorism (Cox, n.d.).
Scope of the crime of money laundering (Recommendations 1-2) as a crime. To classify offenses that are accessory to the crime of money laundering, including conspiracy, attempted, collusive, instigating, facilitating and advising their commission, unless the fundamental principles of domestic legislation do not allow it. The key to being able to determine if money laundering is actually committed in certain unusual situations and all alerts related to this crime is: There should be strong legislation enacted to curb against this crime. To know the characteristics of the crimes of money laundering, to prevent, to detect them, to detect them and to fight them, according to the penal laws for the Financial Institutions of the different countries and to the intervention of the compliance officer in the financial system (Graham,Bell&Elliott,2003).
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