CHANGES TO MONEY LAUNDERING LAWS SHOULD CONSIDER HOME BUYERS, TENANTS AND IMPACTS ON SMALL BUSINESS

November 11th,2021

The Real Estate Institute of Australia (REIA) has urged the Inquiry into Australia’s anti-money laundering and counter-terrorism financing regime to deliver recommendations that target sophisticated money launderers without creating a financial burden on home buyers, tenants and real estate agencies.

Mr Kelly said that from a market’s point of view, what is driving up high property prices is well documented.

“Low supply, high demand, high taxes, a greater demand for houses over units and uncertainty of vendors to list new properties created by the ongoing COVID-19 pandemic are all major factors in the current market.

“The overwhelming majority of demand is being experienced domestically and by repatriating Australians.”

Mr Kelly said that he was pleased AUSTRAC and AFP have confirmed in their testimony to the Senate Committee that there is no agreed evidence to correlate criminal activity to a strong property market.

When asked about their assessment on real estate risk, AUSTRAC noted only the potential for unequal market in individual circumstances.

“I just want to make the notation that it is important to recognise that the consequences sections of our risk assessment that are being done describe the potential impacts of activity, not necessarily the actual impact or what is occurring.”

“We note that widespread, concentrated real estate purchases with proceeds could drive prices up. And the word is could.”

• Bradley Brown, AUSTRAC