Perhaps Mr Dastyari might propose a bill in the Senate!
Push to make lawyers, accountants report suspicions transactions
by Aaron Patrick
Lawyers, real estate agents, accountants and tax planners can be used to launder money into property and should be forced to report suspicious transactions, according to Transparency International.
The global corruption watchdog wants the federal government to require professionals involved in property transactions to be subjected to the strict anti-money laundering rules that apply to banks and to file reports to the Australian Transaction Reports and Analysis Centre.
One of the risks it identified is the flood of cash from Chinese buyers into apartments and houses in Sydney, Melbourne and elsewhere.
"There is clear evidence that such investment in Australian property is also an easy and convenient way to hide hundreds of millions of dollars from criminal investigators, tax authorities or others tracking criminal behaviour and the proceeds of crime," the group said in a 40-page report on real estate corruption in Australia, Canada, the US and UK.
"In Australia, 70 per cent of Chinese buyers pay in cash and they represent the largest proportion of foreign purchases in the country."
Australia not complying
Transparency International, which is known for ranking all countries by how corrupt they are perceived to be, said Australia had not complied with its international commitments to apply anti-money laundering rules to lawyers, real estate agents, accountants and tax planners involved in the property industry.
The change would force experts to identify who owned properties being bought or sold, which would increase regulatory costs but make it harder for criminals to hide their wealth.
Australia relies on checks by financial institutions to stop money being laundered into property, the report says, and needs to extend the scrutiny.
Foreigners wanting to buy homes are checked by the Foreign Investment Review Board. For acquisitions made by companies. the application form requests information on all shareholders with more than 5 per cent interest in the purchase. There is no requirement to disclose the real people who own or control the shares.
Research by Transparency International found that 75 per cent of UK properties under investigation for corruption between 2004 and 2015 were registered with offshore companies incorporated in countries such as the British Virgin Islands where details about company ownership are not available.
Anti-corruption summit
The Australian government promised at an anti-corruption summit in London last year to tighten the rules but is moving too slowly, the group said.
AUSTRAC, the money laundering watchdog, investigated more than $3 billion in suspicious transfers by Chinese investors last year, including $1 billion in property transactions.
Between 2004 and 2013 an estimated $US1.4 trillion was spirited illegally out of China, which has been leaning on governments to do more, particularly in countries like Australia, Canada and the US, which are popular destinations for fleeing officials.
Last year China set up a Department of Overseas Fugitives Affairs to target corrupt officials and their assets hiding offshore. But its legal system lacks independence and transparency, corruption crimes attract the death penalty and authorities are often accused of using torture.
http://www.afr.com/business/legal/push- ... 402-gvbwb2
