Money Laundering in and through Australia, 2004

By Stamp, John; Walker, John | Trends & Issues in Crime and Criminal Justice, August 2007 | Go to article overview

Money Laundering in and through Australia, 2004


Stamp, John, Walker, John, Trends & Issues in Crime and Criminal Justice


By its nature, money laundering is unlikely ever to be measured accurately, but estimates of its cost to the economy can be made using a range of data sources. This research updates estimates of the cost of money laundering undertaken in 1995 and identifies risk areas for money laundering in and through Australia. It confirms that fraud constitutes the greatest source of laundered funds, followed by the illegal drug trade. The sectors that survey respondents identified as most likely to be utilised to launder money were banking, casinos, real estate and accounting. The mechanisms identified as most commonly used to launder money were cash and wire transfers, credit cards and 'payable through' accounts. There was also occasional use of gold and precious metals, and cheques. The respondents identified real estate, further criminal activities, gambling, luxury goods and legitimate business as the most likely activities in which the laundered money was invested. Taking several different methods of estimating losses from money laundering into account, the total estimate for 2004 was $4.5b. While Australia's mature controls over national and international financial transactions place it at the lower end of the range of costs, the changing international financial environment and increasing sophistication of offenders mean that opportunities for new ways of money laundering continue to develop. Its potential to fund terrorist activities makes its identification and control even more pressing.

Toni Makkai

Director

The 1995 report, Estimates of the extent of money laundering in and through Australia (Walker 1 995) suggested that around $3. 5b per annum were believed to be generated by crime in Australia and laundered either in Australia or elsewhere, with the bulk generated by fraud and then drugs. This went against the prevailing international consensus, which was that the majority of laundered money was generated by drug offences. Since then, however, research around the world has increasingly identified fraud as the predominant international generator of criminal profits (compare, for example, the ACFE (2006) estimate of US$638b for fraud with the ONDCP (2003) estimate of US$64.8b on drugs).

A number of issues, such as the changing nature of crime, the factors that facilitate crime such as technology, the rise of terrorism, and the passage of time, presented the opportunity and need to revisit the earlier work, to assess whether Australia's response to money laundering more than a decade on continued to be effective and commensurate with the seriousness of the problem. It was also an opportunity to extend the analysis of the extent of money laundering to an assessment of the linkages of crime and money laundering in the Asia Pacific region, and to terrorism in the region.

Worldwide concerns over the extent of money laundering, coupled with evidence that major terrorist activities have been facilitated by money laundering techniques, have significantly increased the level of knowledge and interest in money laundering. Understanding money laundering demands analysis of the size of the problem and its impacts on society. However, few real advances have been made in the quantification of money laundering at the regional or global levels. There is much reliance on former International Monetary Fund Managing Director Michel Camdessus' frequently quoted estimate of two to five percent of global GDP (Camdessus 1988), but there is little evidence of the basis of this estimate.

Apportioned to Australia these top-down estimates, would equate to about $10.9 to $27. 3b in 1995 terms, far in excess of the Walker estimation of $3. 5b (using 2002-03 figures, the Camdessus estimate would suggest a range of $14.7-36.7b). This shortfall suggests that Australia's relatively robust financial sector, the investment made in law enforcement and financial intelligence, and the nature of Australia's borders and stability have contributed to a lower than global average extent of laundering. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Money Laundering in and through Australia, 2004
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.