Australia reveals US$460 million property splurge tied to fugitives
The country is cracking down on money laundering and terrorism financing in the real estate sector
[SYDNEY] Australia’s financial crime watchdog has for the first time revealed a US$460 million property splurge linked to international fugitives, showing just how attractive local real estate has become for the criminal set.
Intelligence networks detected the vast acquisition spree – carried out in just one week – last year, said Brendan Thomas, chief executive officer of Australia’s financial crimes watchdog Austrac. It turned out family members of the buyers were on Interpol’s priority wanted list.
“Real estate is a really good way for international criminals to store big amounts of money,” Thomas said in an interview. “That’s the challenge we deal with.”
A crackdown on money laundering and terrorism financing in the property sector is at the centre of an enormous expansion of Thomas’ powers. After years spent finding and filling gaps in the defences of banks and casinos, Austrac from July next year will also oversee real estate agents, lawyers and accountants, in a bid to stem a wave of serious and organised crime that costs Australia as much as A$69 billion (S$56.7 billion) a year.
An Austrac representative said the organisation was unable to provide more details about the A$750 million run of property purchases, citing ongoing proceedings.
Decades of real estate price rises have made Australian property an even bigger draw for organised criminal gangs, said Thomas. And there is a cohort of real estate professionals facilitating those investments, he said.
A NEWSLETTER FOR YOU
Tuesday, 12 pm
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
At the same time, there are solicitors and other service providers helping to create shell companies through which organised crime groups can channel funds. Sometimes the lawyers or accountants know exactly who they are dealing with, while at others, they are unwitting participants in a criminal enterprise, he said.
“We need to shut down those avenues,” said Thomas. And he issued a warning to some of the entities that will fall under Austrac’s remit next year.
“I’ve got a small list in my drawer of people in those industries,” he said. “As soon as they’re subject to our regime, we will be knocking on a few of those doors.”
Thomas started his five-year term at the helm of Austrac in January last year. He is a former deputy secretary in the department of communities and justice for New South Wales state, and an ex-CEO of Legal Aid New South Wales.
In Australia, Austrac performs a dual role as a regulator and a financial intelligence unit. The reforms that passed parliament in late 2024, widening Austrac’s remit, represent the biggest changes at the organisation in two decades. All told, the number of entities Austrac oversees will jump from around 17,000 to more than 100,000. BLOOMBERG
Share with us your feedback on BT's products and services
