Introduction
It is a pleasure to be here this evening and to welcome, on behalf of the Australian Government, the many international guests participating in the 11th Annual Meetings of the Egmont Group.
The Minister for Justice and Customs, Senator Chris Ellison, has asked me to convey his apologies for not being able to attend as he needed to deal with an urgent matter abroad.
For those who may not be aware, as the Minister for Revenue and Assistant Treasurer, my portfolio responsibilities do not directly cover the operations and activities conducted by AUSTRAC, but as a Treasury Minister, I obviously have a keen interest in work in this area. My responsibilities primarily relate to taxation policy, and superannuation and insurance policies.
However these areas clearly interact to varying degrees with the operation of Australia’s financial markets, and indeed the flow of funds across national borders.
The size of cross-border flows, and the speed and ease with which they occur, clearly requires close monitoring. This is important not only for domestic policy formulation purposes, but also in relation to the prevention and detection of crime and criminal proceeds.
As Michael has already stated, there is no one solution that will beat financial crime.
In today’s world we deal with extremely sophisticated and well organised crime syndicates and in some cases, terrorist organisations.
For these groups, the manipulation and exploitation of financial markets and systems is a profession and a business. They are expert at what they do and they will go to extraordinary lengths to avoid detection.
Fighting Financial Crime
Having said this, there is nothing to be gained by lamenting on the enormity and the complexity of the challenge before us.
We therefore need:
- policies and strategies that are sensible, innovative and effective in meeting the challenges posed by criminal networks now and in the future; and
- robust international agreements reinforced by effective domestic laws and by a strong compliance culture.
The Australian Government’s resolve to combat money laundering and the financing of terrorism is stronger than ever. As part of this resolve, it is critical that government and industry work together in a cooperative and positive way.
We must share information, expertise and intelligence and we must build an international network that strengthens government and financial sector programs to leave no gaps for criminals and terrorists to exploit.
Cooperation by the Financial Sector
The Australian Government is certainly impressed by the enthusiasm that exists within the Australian financial sector to contribute to anti-money laundering and counter-terrorist financing efforts.
It is also clear that the sector recognises that strong anti-money laundering programs are not only in their own best interests but also in the national interest. AUSTRAC’s various industry consultative groups are an excellent example of the way government and business can work together.
For example, I understand that tonight’s host, Westpac, was a founding member of AUSTRAC’s Provider Advisory Group which has proved to be a very successful way of bringing the financial sector together to advise government on emerging financial sector issues.
Anti-Money Laundering and Counter-Terrorist Financing Initiatives
Internationally, we have already heard mention of the introduction of the US Patriot Act and the revised FATF recommendations.
When these are combined with such initiatives as the Australian Suppression of the Financing of Terrorism Act and the ongoing standards being developed by the Egmont Group, it is clear that we operate in a constantly changing environment. New pressures are continually being brought to bear on the financial sector.
Thus, the consultative groups and other relationships we have in place stand us in good stead to deal with these changes and necessary reforms.
Contribution by Westpac
I understand that Westpac has been a keen participant in the industry forums designed to enhance engagement with the regulatory authorities, and I commend them for adopting a major sponsorship role in this week’s meeting.
This cooperation and support is greatly appreciated.
Conclusion
In conclusion, it is clear to the Government and no doubt to all of you present here tonight that crime and terrorism cannot be beaten by Australia - or any other country – acting alone.
Our advantage and our strength lies in a coordinated and concerted effort.
The task before us is not easy but by working together, through such forums as the Egmont Group, and with the assistance of the financial sector, we will succeed.
I trust that your meetings will be successful and I thank you for being here tonight.