Drug traffickers and terrorists are exploiting real estate, banks, casinos and other legal channels to launder money and profit from their crimes, the attorney-general warns.
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If Australia wants to keep pace it must update its laws to close the gaps leveraged by criminal organisations, Attorney-General Mark Dreyfus says.
In a joint National Press Club address with Brendan Thomas, chief executive of the anti-money laundering regulator AUSTRAC, Mr Dreyfus will launch two national risks assessments on money laundering and terrorism financing.
"Money laundering enables crime by allowing criminals to profit from their offending, this is profit that can then be reinvested to finance future crime," he will say on Tuesday.
"These criminals are constantly looking for new ways to exploit our systems.
"No legitimate business wants to assist the laundering of money from these crimes."
Risk assessments reveal bad actors use established, legal channels including cash, luxury goods, domestic banks, real estate and casinos to launder their funds in Australia, Mr Dreyfus will say.
There are a variety of vulnerabilities that detract from the effectiveness of Australia's existing laws to prevent these financial crimes.
Mr Dreyfus and Mr Thomas will outline a proposal to tackle the "criminal enterprise cycle", with details to be revealed during their address.
"These crimes are occurring across Australia," Mr Dreyfus will say.
"Opposing these reforms means aiding and abetting the criminal abuse of our financial system by drug traffickers, people smugglers, terrorists and those who exploit and abuse children.
"We have to act, we cannot afford any further delay."
Australian Associated Press
