NCJ Number
230506
Date Published
May 2010
Length
118 pages
Annotation
This report provides information and analysis on the money laundering and terrorism financing risks that could result from the alternative remittance systems operating in Australia.
Abstract
This report examined the alternative remittance industry in Australia and found that those who use or provide alternative remittance systems (ARS) are concerned that they are being unfairly targeted by regulators and law enforcement agencies. The study also found that ARS users and providers would like to see more regulation of the industry with regards to consumer protection and industry compliance with the government regulatory regime. The report is divided into five sections that cover 1) the nature and use of alternative remittance systems; 2) the Australian experience of alternative remittance services; 3) Illegal use of alternative remittance systems; 4) The regulatory response; and 5) Strategies to enhance compliance. The aims of the research were to determine: "which remittance systems are used by people in Australia, why and to what extent; whether, and to what extent, such systems are used for money laundering and the financing of terrorism and how the risk of illicit use can be minimized; and how compliance with the current regulatory regime can be enhanced." Data were collected through interviews and focus groups with users and providers of ARS, consultations with government officials, and a comprehensive review of published prior research on ARS. Potential directions for future research are discussed. Figures, tables, references, and appendixes