Tsunami of unexplained wealth and housing affordability

Australia, Canada, and New Zealand are among the favored
jurisdictions for criminals and corrupt politicians who want
to invest in property overseas. Majcher, a former organized
crime investigator for the Canadian government said there
were pockets in Australia where money laundering through
real estate had reached “systemic and epidemic proportions”.
“An elaborate ‘cottage industry’ for laundering has taken root
in Australia.

This has blinded many Australian gatekeepers to the point where they’ve lost sight of their professional responsibilities,” he said.

“Collateralised loans are made by Aussie lenders to Chinese
customers. They show up in Australia without any jobs
or declared income, but they can show blocked funds of
unknown ownership or origin sitting in a bank in China. The
Australian bank accepts the Chinese funds as collateral to
secure loans to buy property in Oz,” Majcher said.

These funds are pushing up prices unfairly and a nurse, policeman, fireman who is serving this country is competing against market forces of these illegal funds.

The Tranche 2 laws have been on the drawing board in
Australia for more than 12 years, despite having bipartisan
support. The federal government had committed to passing
laws to capture DNFBPs by 2018, following the critical report
from the FATF in 2015. Australia had fallen well behind in its
international obligations to protect the country’s economy
from criminal abuse, the report said.

“The government is considering options to extend AML/
CTF regulation to ‘tranche 2’ entities, such as lawyers,
accountants and real estate agents,” the spokesman said.

The bottom line is a law-abiding citizen of this country competing against criminals of foreign countries who are the owner of unexplained wealth and pushing housing prices up by laundering money in Australia.

 If Australia failed to deal with this problem it would undermine confidence in the economy and possibly even the legal system, this tsunami of unexplained wealth has had a corrosive effect on the average law-abiding Australian, who is playing by the rules and yet falling further behind,”

 

Sources :
Regulatory-Intelligence-Anti-Money-Laundering-Report-Project-Dragon

Leave a Reply

Close Menu