Remittance sector discussion paper released

Mr O'Connor made the announcement while standing in front of $9 million of cash seized by the AFP after a joint invesitgation with the Australian Crime Commission into links between organised crime and remittance agencies.

"A strong new regulatory regime is needed so that remittance dealers who help criminals, such as people smugglers and drug traffickers, to launder funds can be deregistered," Mr O'Connor said.

Remittance dealers have been recognised internationally as being vulnerable to misuse for money laundering and terrorism financing.

"Australian law enforcement authorities are aware that international cash transfer services provided by remittance dealers can also be used to pay the organisers of people-smuggling ventures," Mr O'Connor said.

"We must ensure that this valuable service - often used to send money to family and friends - can't be misused to support criminal activity.

"The Government wants to work with the sector to develop a fair and workable registration regime that ensures the community can access a cheap and effective remittance sector whilst minimising misues of the services to further people smuggling ventures and other criminal activities.

"I encourage everyone with an interest to be involved in the consultation process."

The Minister also released an Australian Institute of Criminology report on the money-laundering and terrorism-financing risk posed by alternate remittance dealers in Australia.

The discussion paper follows the Minister's announcement on 16 April 2010 that a new rule had been made giving the AUSTRAC CEO power to deregister remittance dealers who pose a significant money-laundering or terrorism-financing risk.

Written comments on the discussion paper can be emailed to aml.reform@ag.gov.au, faxed to +61 2 6141 2871, or posted to the Australian Government Attorney General's Department, 3-5 National Circuit, Barton, ACT 2600, Attention: Border Management and Crime Prevention Branch.

The discussion paper is available at www.ag.gov.au

The Minister for Home Affairs has also announced an extensive legal assistance program in the Asia-Pacific to combat money-laundering and financing of terrorism.

The Australian Attorney-General's Department will provide the comprehensive legal assistance program that will include:
- the provision of technical legal assistance and cooperation to strengthen and implement regional anti-money laundering and counter-financing of terrorism laws; and
- a prosecutor pairing scheme which will see prosecutors in the region strengthening their knowledge and building relationships to more effectively combat transnational organised crime.

This is an expansion of training and legislative assistance already provided across the Pacific to now include priority Asian countries such as Indonesia, Philippines, Malaysia and Sri Lanka.

It also includes additional assistance to Papua New Guinea focusing on police and prosecutors.

Work will include, in particular, the development of a Proceeds of Crime police training manual.