The Law Council of Australia recently commissioned an independent analysis of the risks facing the Australian legal profession in relation to money laundering and terrorism financing. This analysis reveals that while there are positive attitudes and behaviours regarding integrity and risk awareness, certain vulnerabilities still persist. These vulnerabilities vary across jurisdictions and practice types, with no overarching high-risk assessment for the entire profession.
The independent risk review identified these vulnerabilities through extensive research, including interviews and consultations with more than 200 individuals across various legal roles. Their findings suggest that while the legal sector is proactive in addressing potential risks related to money laundering, some gaps still exist. For example, the report highlights the non-uniformity in electronic conveyancing across states and the lack of verification processes for identifying the true beneficiaries of legal arrangements.
The report supports maintaining and enhancing current anti-money laundering and counter-terrorism financing measures, recommending that existing controls be augmented to further mitigate risks. This approach aligns with the Financial Action Task Force’s (FATF) risk-based standards, emphasizing the need for continuous improvement in regulatory practices to prevent exploitation by criminal elements. The Law Council of Australia, in response to these findings, is actively collaborating with the government to address these vulnerabilities, aiming to strengthen the legal profession’s defenses against these illicit activities.