Money laundering could be costing Australia $11.5 billion

Money laundering activities in Australia could be costing as much as $11.5 billion a year, according to information provided to the InstituteofChartered Accountants this week.

A business forum held by the institute this week was told by the director of Aub Chapman Consulting, Aub Chapman, that it was estimated that money laundering amounted to between 2 and 5 per cent of global gross domestic product, and that professionals in the financial services sectors needed to be vigilant to avoid becoming involved.

Pointing to the Federal Government’s new anti-money laundering and counter terrorism financing legislation, Chapman said accountants needed to ensure they had the training and resources to comply with their obligations.

He said under the provisions of the new legislation, organisations could not start to provide designated services unless they had developed and implemented an appropriate AML/CTF program that included identifying and managing risks, providing employee risk awareness training and appointing a compliance officer at management level.

“The bottom line is that your business, your customers and your products equal your responsibility,” Chapman said.