NCJ Number
230507
Date Published
April 2010
Length
6 pages
Annotation
This report provides an overview of the alternative remittance systems in Australia and looks at why and how it they used.
Abstract
Since the September 11, 2001, terrorist attacks, governments around the world have not only increased regulation of the formal banking system, but have extended the increased regulations to include providers of alternative remittance systems (ARS). This report from the Australian Institute of Criminology (AIC) examines the way in which ARS operates within Australia, the extent to which these systems are used and why, the factors that may affect compliance with regulatory requirements for ARS, whether ARS is used to facilitate money laundering or terrorism financing, and finally, how the risks of abuse of ARS can be minimized. Findings indicate that most people use an ARS because they consider it cheaper, faster, and more reliable than banks or corporate remitters, and while few users reported any difficulties with using an ARS, some reported concerns about the legitimacy and safety of the processes used by the ARS providers. One important finding from the report was that the majority of the reported misuse of ARS was related to criminal activity and not to financing of terrorist activities. However, the evidence of this misuse is fragmentary and therefore difficult to quantify. The findings also indicate that the majority of ARS users and providers in Australia's ethnic communities support increased regulation of ARS and believe that the most effective way to increase compliance with regulation is to increase interaction with the communities that use these services. References