A number of agencies around the world believe that the Australian housing market is the main target market for money launderers. (photo by Daily Mail)
According to the Daily Mail, experts warn that money launderers will raise house prices in Australia, causing Australians to pay more than real estate value when buying their homes.
It is reported that a number of agencies around the world believe that the lack of awareness and regulatory measures, the Australian housing market as the main target market for money-laundering. The money-rich lawbreakers are willing to pay high prices for real estate, using up their money in this way, making house prices more expensive in some regions.
Oliver (Shane Oliver), chief economist at AMP, a financial services firm, said lawbreakers used illegal money by paying more to buy homes, which had an impact on the high-end housing market. He pointed out that even one such transaction would lead to a rise in house prices as a whole.
Real estate brokers also say that when the price of a property is higher than the regional average, it will prompt more local sellers to raise the asking price for the sale.
Last year, a total of A $5 billion of illicit money flowed into financial markets, according to the IMF`s (IMF) forecast.
Only 2 per cent of illegal money-laundering transactions were found or frozen, according to a United Nations report.
Therefore, it is impossible to accurately calculate the total amount of money laundering through the Australian housing market.
In 2016, Australia`s government extended anti-money-laundering and counter-terrorism financing regulations to real estate agents, lawyers, accountants and jewellers. But last week, a report from the Australian newspaper noted that AUSTRAC, the financial intelligence agency, believes that Australia`s existing anti-money-laundering and counter-terrorism financing laws are becoming increasingly unsuited to its original purpose as emerging technologies emerge.
