Australia could end up on FATF grey list, AUSTRAC warns

AUSTRAC’s chief executive officer Nicole Rose said the country needs to do more to raise money laundering standards.

Australia.- During a conference organised by the Association of Certified Anti-Money Laundering Specialists (ACAMS), Nicole Rose, AUSTRAC’s chief executive officer, has warned that Australia could be put on the FATF grey list of untrustworthy jurisdictions by 2025.

The Financial Action Task Force (FATF) is the Paris-based inter-governmental agency that monitors controls on anti-money laundering and terrorist financing. Countries on the grey list are required to submit progress reports to FATF three times a year.

The issue is relevant for the gaming industry. Crown Resorts, one of the main casino operators in Australia, was declared unsuitable to hold a licence for its Melbourne casino due to multiple failings on money laundering.

Another casino giant, The Star Entertainment Group, is facing an inquiry to determine if it is suitable to continue holding a casino licence in Sydney. Shannon Fentiman, Queensland’s attorney general, has also ordered a review into its suitability to hold a licence in Queensland.

The FATF keeps the Philippines on grey list

The FATF has recently updated its grey list, and the Philippines remains listed. The FATF acknowledged that the Philippines had “taken steps to improve its AML/CFT regime” since last June. However, it listed seven areas where more work is needed to address the country’s “strategic deficiencies” related to AML and CFT.

Among the recommendations, it said the Philippines needs to demonstrate that it uses AML and CFT controls “to mitigate risks associated with casino junkets.”