Criminology Research Council grant ; (33/03-04)
This research project was commenced to review and revise John Walker's 1995 report, Estimates of the extent of money laundering in and through Australia. The 2004-05 study was also intended to consider money laundering and terrorist financing linkages within the Asia-Pacific region.
Since the 1995 report was published by AUSTRAC, there has been little work done to quantify money laundering at national levels. The 1995 report considered a variety of sources and suggested that between AUD $1.0 and $4.5 billion per annum were generated by crime in Australia and laundered either in Australia or elsewhere, with a most likely figure of around AUD $3.5 billion, with the bulk of this quantum generated by fraud and then drugs.
The 2004-05 study built on the 1995 Walker report, again involving surveys of Australian law enforcement officials, overseas financial intelligence units, and researchers in Australia and overseas; a literature review; and analysis of official statistics, including data held by AUSTRAC. These data provided a range of estimates, which enabled the derivation of a likely range of the quantum of money laundering in or through Australia. The results suggest that crime in Australia generates between AUD $2.8 and $6.3 billion, with a likely figure of AUD $4.5 billion. Fraud and drugs are still believed to be the major generators of proceeds of crime. This is well below the range of $14.7 to $36.7 billion that would equate to the IMF's often quoted range of two to five percent of global GDP. Also, hard to quantify shadow economy activities and transfer pricing techniques that may involve underpayment of tax, cannot be readily estimated and could increase this figure.
The study found some areas for further study, particularly noting the need for further research at national levels, the need for more comprehensive and reliable data, and observed that there may be value in conducting this type of research more frequently than once every 10 years.