COMMITTEES
Law Enforcement Joint Committee
Report
Mr BATT (Hinkler—Deputy Nationals Whip) (16:15)
Tabling Speech—Deputy Chair—Report tabling
Capability of law enforcement to respond to money laundering and financial crime
I rise as Deputy Chair of the Parliamentary Joint Committee on Law Enforcement to present the committee’s report for the inquiry into the capability of law enforcement to respond to money laundering and financial crime.
Money laundering is a serious and pervasive threat to Australia’s national security, economy, and community wellbeing. It enables criminals to reinvest illicit profits into further criminal activity while undermining the integrity of Australia’s financial system. The ACIC conservatively estimated that approximately $38 billion in proceeds of crime was available for laundering in Australia in 2023-24.
This inquiry was initiated in the 47th Parliament and re-referred in the 48th Parliament. The inquiry examined the scale and forms of money laundering, Australia’s legislative framework, law enforcement capabilities and challenges, information and intelligence issues, and the role of the private sector. The inquiry heard from federal law enforcement, intelligence, regulatory, and prosecutorial agencies; state and territory police, the private sector, academics, and others.
Based on the evidence received, the committee makes ten recommendations which collectively aim to strengthen Australia’s anti-money laundering framework, close identified gaps, and position law enforcement to keep pace with an evolving threat environment.
Several challenges face law enforcement in combating money laundering. Technology is increasing the scale of the problem. Digital payment platforms are being exploited by criminal networks to move and conceal illicit funds at speed.
Information sharing between federal agencies and the private sector, while improving through existing platforms, remains constrained. The availability of timely, accurate, and shareable information is central to effective anti-money laundering efforts. The committee recommends significant government investment into implementing a secure, real-time, public–private information sharing capability that allows banks, regulators, and law enforcement to share financial crime intelligence instantly and respond to suspicious activity faster.
A public beneficial ownership register — which would make it harder for criminals by eliminating corporate anonymity — is underway but will not be operational until 2028-29. The committee supports expediting this work.
AUSTRAC receives approximately half a million suspicious matter reports annually but lacks ready access to criminal intelligence databases that would allow it to contextualise and prioritise referrals to law enforcement. The committee recommends improving AUSTRAC’s access to criminal intelligence databases to enhance the quality of actionable intelligence flowing to enforcement agencies.
Workforce capability requires sustained investment. Agencies across the law enforcement and intelligence community face challenges in recruiting and retaining personnel with the specialist financial, technological, and analytical skills required to combat modern money laundering. The committee recommends establishing a dedicated national centre of excellence to uplift workforce training across law enforcement, regulatory, and intelligence agencies, to ensure that investigators are equipped to analyse complex transactions across rapidly evolving digital platforms.
Criminal networks operate across borders, exploit jurisdictions with weaker controls, and use the international trade system for money laundering. The committee notes the AFP’s success in working with Five Eyes and European partners to target offshore money laundering networks, and supports continued investment in these relationships.
The committee heard that our federal agencies including AUSTRAC, the AFP, and the ACIC are accelerating their adoption of AI and advanced analytics to keep pace, and the committee encourages this trajectory. Industry partnerships are proving valuable and should be deepened.
The committee commends the significant achievements of Australia’s law enforcement, intelligence, and regulatory agencies for continuing to perform in an exceptionally challenging environment. The committee will continue to monitor developments in the financial crime and money laundering space.
I wish to thank all those who gave evidence to the committee, and my fellow committee members for their contributions.
I commend the committee’s report to the House.