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

I rise as Chair of the Parliamentary Joint Committee on Law Enforcement to speak to the committee's report for the inquiry into the capabilities of law enforcement to respond to money laundering and financial crime. Money laundering is not a victimless crime. It is the engine that powers organised crime, recycling those profits into further criminal activities. Money laundering corrodes our financial institutions, undermines our financial system and ultimately harms every Australian. The Australian Criminal Intelligence Commission conservatively estimates that approximately $38 billion in proceeds of crime was available for laundering in Australia in 2023-24 alone. That figure does not capture overseas proceeds brought into Australia for laundering, which are assessed to be significant.

This inquiry was initiated by the 47th Parliament and reaffirmed in the 48th Parliament with a refreshed committee. The inquiry examined the scale of money laundering, Australia's legislative framework, law enforcement's capabilities and challenges, information issues and the role of the private sector. The committee heard from federal agencies, state and territory police forces, the private sector, academics and many other witnesses, and we appreciate their evidence. The breadth and quality of that evidence helped to shape a report the committee is proud to present, as we did two weeks ago.

The evidence before the committee painted a picture of a threat that is growing in scale, sophistication and complexity. Technology is at the heart of the evolution. Criminal networks are also exploiting international trade systems in ways that are difficult to detect and hard to prosecute. The committee was encouraged to hear that our federal agencies are embracing new tools. AUSTRAC is trialling AI to analyse half a million suspicious matter reports it receives each year. The AFP has made AI adoption a key priority under its new commissioner. The Australian Criminal Intelligence Commission is building AI literacy across its workforce, and, through partnerships like the Fintel Alliance and the Australian Financial Crimes Exchange, the public and private sectors are beginning to share intelligence in ways that would have been impossible a decade ago.

One of the most consistent themes in the evidence was the problem of information—who has it, who needs it, and what the law currently allows to be shared. Information sharing between agencies and the private sector is improving but also remains restrained.

During the inquiry period, the government reduced information gaps by expanding Australia's anti-money-laundering and counterterrorism financing regime to capture lawyers, accountants, real estate agents and others. This reform addresses a significant vulnerability, making sure that professional services are aware that they need to report and should be reporting suspicious activities.

The beneficial ownership register, which would make it far harder for criminals to hide behind complex corporate structures and shell companies, remains, unfortunately, years away. The committee understands these sequences but urges that this work be progressed as quickly as possible.

The committee received evidence that recruiting, training and retaining personnel with the specific financial, technological and analytical skills required to combat modern money laundering is one of the most pressing challenges facing the law enforcement agencies. This is not simply a human resource problem; it is a national security problem. Getting the workforce settings right is fundamental.

In total, the committee makes 10 recommendations, and they are designed to close the gaps in the legislative framework. I also want to acknowledge not only the witnesses who gave evidence but also the work that is done by Australia's law enforcement and intelligence officers and regulatory agencies, who are working to address these issues every single day. As I said from the outset, money laundering impacts every Australian. We need to do more. We must do more. I put on record my thanks to the secretariat for the work they did and to my colleagues on the Parliamentary Joint Committee on Law Enforcement for their work and their dedication to bringing this report to the parliament.