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Australia world's worst money laundering property market

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Created by FlySurfer > 9 months ago, 3 Apr 2017
FlySurfer
NSW, 4412 posts
3 Apr 2017 11:05AM
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www.macrobusiness.com.au/2017/03/report-australia-worlds-worst-money-laundering-property-market/


Transparency International has released a new report, entitled Doors Wide Open: Corruption and Real Estate in Four Key Markets, which has identified Australia, Canada, the UK and the USA as the top four spots targeted by corrupt officials or criminals for real estate crime. Australia is the worst, failing to address 10-out-of-10 loopholes.

Australia has severe deficiencies under all 10 areas identified in the research and is therefore not in line with any of the commitments to tackle corruption and money laundering in real estate made in international forums.

In Australia, real estate agents are not subject to the provisions of the Anti-Money Laundering and CounterTerrorism Financing Act 2006. Other professionals such as lawyers and accountants who may also play a role in the sector are not covered either. This means that properties can be bought and sold without any due diligence on the parties. Currently there are no requirements for real estate agents or any professional involved in real estate deals to submit STRs, even if they suspect illegal activity is taking place, and there are no requirements or rules for verifying whether customers are PEPs or their close associates.

In Australia, 70 per cent of Chinese buyers pay in cash and they represent the largest proportion of foreign purchases in the country.

Recently an extradition treaty with China was cancelled because of the possible detriment to Chinese money laundering activity and Australian property.

NorthernKitesAUS
QLD, 1061 posts
3 Apr 2017 12:21PM
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So you want to be part of the action there Fly?

FlySurfer
NSW, 4412 posts
3 Apr 2017 4:18PM
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Select to expand quote
NorthernKitesAUS said..
So you want to be part of the action there Fly?


I use Bitcoin to launder ;)

Chris6791
WA, 3271 posts
3 Apr 2017 2:48PM
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The extradition treaty was derailed for lots of reasons. Not just because of alleged money laundering through property.

FormulaNova
WA, 14044 posts
4 Apr 2017 7:25AM
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I don't think its just foreigners either.

I suspect that there are people out there that are buying houses, spending a lot of illegitimate cash on renovating them and then either selling them or revaluing them to get at the equity.

I read a story on one of the news sites where they talked about a person that was able to acquire a massive number of properties, yet on a small income. Being ever cynical, to me the numbers didn't add up, and I suspect that maybe it would be a good way to clean a lot of unclean money. Buy a house, possibly pay some in cash, renovate it with cash, and then you have an asset that has just appreciated and no one cares how it was renovated. If its worth twice as much, that's just good luck, and possibly tax free, or at a reduced tax rate.

I mean, it does seem really easy...

AUS1111
WA, 3617 posts
4 Apr 2017 8:56AM
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Agree with all of the above. It is a huge free kick for criminals and action should be taken.

There is massive attention paid to anti money laundering and counter terrorism financing in the finance and investment sector, and yet nothing for real estate. It seems crazy.

Sectorsteve
QLD, 2195 posts
4 Apr 2017 1:50PM
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government loves it. they get stamp duty every sale. real estate agents get commission every sale. As prices rise so does their income.
Sad that the Canadian Family in Manly who are residents and brought their kids up here are being forced to sell their property because of some loophole. Meanwhile the chinese pay 5 mill to the gov for a visa and can do what they want. Im bloody sick of driving behind chinese 20 year olds in 100k cars. Aussie and NZ are just being incorporated into Asia. Thats whats happening.

Mark _australia
WA, 22089 posts
4 Apr 2017 5:43PM
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AUS1111 said..
Agree with all of the above. It is a huge free kick for criminals and action should be taken.

There is massive attention paid to anti money laundering and counter terrorism financing in the finance and investment sector, and yet nothing for real estate. It seems crazy.


But the free kicks in taxation law, for the "uber-rich on paper" upper middle class who keep buying investment properties, to the detriment of normal folks who just need a bloody house, is OK?

AUS1111
WA, 3617 posts
4 Apr 2017 7:44PM
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That is a separate issue. Feel free to start a thread.

FlySurfer
NSW, 4412 posts
5 Apr 2017 4:08PM
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Sectorsteve said..
Im bloody sick of driving behind chinese 20 year olds in 100k cars. Aussie and NZ are just being incorporated into Asia. Thats whats happening.


Go to a university, or just drive by one to see what's coming. 9/10 students are asian, of those probably +90% will stay.

Ni hoa biaches.

My local Fitness First used to be pretty mixed, Iranians, Iraqis, Lebos, Greeks, Italians, 1st & 2nd Gen European Aus... now it's rare I hear anything but Mandarin (picking some up from my mate How Hun, aus name Elton) and the swimming pool is 95% Korean... some kind of korean swimming school... I would show you a photo, but I'm scared of getting labelled a pedo or something.

While officially only 25% of new properties are sold to foreigners, the reality on the street is way different.

Well easy come, easy go.
English stole the land with guns/cannons, the Chinese with invented money.

Adriano
11206 posts
6 Apr 2017 9:46AM
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AUS1111 said..
Agree with all of the above. It is a huge free kick for criminals and action should be taken.

There is massive attention paid to anti money laundering and counter terrorism financing in the finance and investment sector, and yet nothing for real estate. It seems crazy.


It is crazy. Governments of all persuasions have done almost nothing because politics and property are closely linked.

sofiamullen
5 posts
24 May 2017 6:01PM
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The real estate market has long provided a way for individuals to secretly launder or invest stolen money and other illicitly gained funds. In many cases, investors invests their funds to the company without even looking back about what past history the company had. According to me every investor should go through the professional renowned Forager Funds Management ( foragerfunds.com/ )staffs like Forager funds provides, Who personally look forward to all the doubts investors has, and eagerly takes efforts in getting high amounts benefits in return.

FormulaNova
WA, 14044 posts
24 May 2017 7:12PM
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Select to expand quote
sofiamullen said..
The real estate market has long provided a way for individuals to secretly launder or invest stolen money and other illicitly gained funds. In many cases, investors invests their funds to the company without even looking back about what past history the company had. According to me every investor should go through the professional renowned Forager Funds Management ( foragerfunds.com/ )staffs like Forager funds provides, Who personally look forward to all the doubts investors has, and eagerly takes efforts in getting high amounts benefits in return.


I hope foragerfunds.com put a bit more effort into their advertising? I am not sure I trust any company that needs to rely on dodgy ads on websites in order to become known. I mean, if they can't afford real ads....



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Forums > General Discussion   Shooting the breeze...


"Australia world's worst money laundering property market" started by FlySurfer