Helen Polley (Tasmania, Australian Labor Party) Share this | Hansard source

I rise to speak on the Crimes Legislation Amendment (Economic Disruption) Bill 2020. This bill introduces amendments to adapt and update money-laundering offences in an attempt to combat modern money-laundering networks, which have become increasingly sophisticated, and to enhance asset confiscation laws and strengthen undercover operations.

Together, these proposed amendments would increase the pressure on the growing strengths of transnational, serious and organised crime groups by targeting the financial benefits they gain from their illegal activities. As a result of a lack of action by the coalition government over the past seven years, Australia has slipped in its defence against criminal practices and allowed criminal enterprises to flood illegal assets and money into Australia. That's happened under this government's watch. The Australian Institute of Criminology estimated that transnational, serious and organised crime groups—TSOC—cost Australia up to $47.4 billion per year. Money laundering remains a fundamental enabler of almost all TSOC activities, and it's grown in scope and complexity as once-localised activity now has a global reach and there is a wide range of products and channels available to them for transferring money around the world.

We must acknowledge that Australia is home to stolen assets that have been shifted across borders. The Australian Federal Police have reported they restrained more than $250 million in criminal assets in courts across Australia and overseas last financial year—and I acknowledge the work that the AFP does in this country and beyond. Criminal organisations operate as sophisticated and compartmentalised businesses, generating huge profits from their criminal pursuits. In order to clean their proceeds of crime and realise profits, the TSOC business model relies on money laundering. This allows profits to be concealed and reinvested in further criminal activities or used to fund extravagant lifestyles.

These criminal organisations always aim to be one step ahead of the law. That's why it is so important for the government to be extremely agile in responding to constantly evolving threats and challenges. Our world is highly globalised and we face threats that aren't and are never going to be constrained by borders. In order to keep in step, the bill has seven schedules and will propose to amend the Crimes Act 1914, the Criminal Code Act 1995, the COAG Reform Act 2008 and the Proceeds of Crime Act 2002 to do the following: it will update Commonwealth money-laundering offences to address the behaviour of modern money-laundering networks, it will remove unnecessary obstacles to securing convictions and it will introduce new sentencing thresholds.

It clarifies that the obligations imposed on investigating officials under part 9 of the criminal act do not apply to undercover operations. It will ensure that buyback orders under the Proceeds of Crime Act cannot be used by criminal suspects and their associates to buy back property forfeited to the Commonwealth or to delay Proceeds of Crime Act proceedings. It will also clarify that the POC Act permits courts to make orders confiscating the value of a debt, loss or liability that has been avoided, deferred or reduced through criminal offences.

It clarifies the operation of the Proceeds of Crime Act in relation to restraint and confiscation of property located overseas. It will strengthen information-gathering powers under the POC Act by increasing penalties for noncompliance and clarifying the circumstances in which information gathered under these powers can be disclosed and used. Finally, it will expand the Official Trustee in Bankruptcy's powers to deal with property, to gather information and to recover costs under the Proceeds of Crime Act to allow the official trustee to discharge its functions in a more cost-effective manner.

Labor welcomes efforts by the government to improve our anti-money-laundering and counterterrorism financial framework, and we support this legislation. But we must note that this bill comes almost five years after the then Minister for Justice tabled the report on the Report on the statutory review of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and associated rules and regulations, which first called for these changes to be made back in March 2016. Five years later, this legislation fails to implement many of those recommendations.

The world's watchdog, the Financial Action Task Force, has expressed serious concerns about Australia's regulatory framework and this government's failure to implement reforms according to its own timetable. So, while government senators come in here and pat themselves on the back, this should have happened at the very least in 2016. While other countries have strengthened their defences against the proceeds of crime and corruption business practices, this government has sat back and allowed illegal capital to stream into this country. It was again recommended in 2017 when an ongoing New South Wales Independent Liquor & Gaming Authority inquiry into Crown casino revealed shocking noncompliance with money-laundering laws by Australian casinos and junket operators. Despite these findings, AUSTRAC—this government's own regulator—gave these risky casino junket operations its tick of approval only three years ago. Since then, tens of billions of dollars have poured into Australia through these channels.

To get even this information, Labor had to fight to get AUSTRAC to release in full its 2017 report. Only after Labor senators moved an order for the production of documents, which forced the government to release the document, did we find out that AUSTRAC warned the government, back in 2017, that there were major gaps in the regulation of junkets in 2017. AUSTRAC then conceded that casinos were using technicalities to pardon themselves of conducting robust due diligence in relation to sources of funds presented to them. AUSTRAC was concerned that casinos appeared to underestimate the risks of money laundering involved in the provision of junket services. Did the government proactively release this information in 2017? No. Did the government work to close these regulatory gaps in 2017? No. What was the result? Only because of the work of Nick McKenzie from the Nine papers and later the New South Wales casino inquiry was widespread money laundering and terrorism financing exposed. Right under the noses of this government, right under the nose of Mr Morrison, money laundering and terrorism financing has been occurring. The government had this information in 2017, and they did nothing. It's concerning that we've needed a New South Wales casino inquiry to bring systemic breaches of money-laundering laws to light. Getting Australia's anti-money-laundering and counterterrorism financing laws right is too important to get wrong.

Labor will not oppose this much-needed delayed legislation, but we do call on the Morrison government to take anti-money-laundering and counterterrorism financing laws seriously. A report undertaken by The Australian Financial Review last week found that Australian banks washed $500 million for violent South American drug cartels in a sophisticated money-laundering scheme. Between 2014 and 2017, more than $100 million in drug money was funnelled through Australian banks each year before it was routed to other destinations throughout South-East Asia and the Middle East. Once the money was in Australia, illegal profits were used to buy high-end electronics that were shipped overseas in order to move the funds, avoiding detection. What really shows here is that, in this area, as in so many other parts of this government's agenda, there is a vast gap between the rhetoric and the follow-through that undermines it. It's not good enough in any respect but particularly when we consider the risk of money laundering and terrorism financing. Money laundering is a real and pervasive threat to Australia, and it's about time that the Morrison government enacted some legislation that attempts to keep in line with the strength and the stealth of international criminal organisations. If the law does not continue to evolve in Australia, it will be more desirable to the international criminal organisations. That's not the sort of reputation Australia wants.

We must remember that it is about money laundering as an integral aspect of fraud, terrorism, human trafficking and transporting the illegal assets of violent criminal enterprises. The last thing Australians want is to become easy pickings for the money-laundering and terrorism financiers. Our framework must continue to evolve. We must continue to strengthen our laws and the Morrison government must do more to stay ahead of the curve and maintain our domestic security and integrity.

We know that our men and women who work in this area do a fantastic job, but they need to be supported by good, strong legislation, which this government was elected to provide. We on this side of the chamber will continue to hold this government to account and to do all that we can to disrupt the workings of serious organised criminal enterprises. The way to do that is to have strong legislation to ensure the AFP has agility and powers, and that the government stays ahead of the curve when it comes to these criminal organisations.