Australia: The Continuing Fight against Money Laundering — Financial Institutions and FATF's Recommendation 19

Over the past decade concern has been raised by much of the international community about the integrity and stability of the financial system, given the amount of money being laundered to convert the profits of illegal activities into financial assets which appear to have a legitimate origin. This money includes not only the gains from the sale of illegal drugs but also the profits from organised crime and tax evasion. Annual estimates of laundered funds range from US$300bn to as much as US$1.000bn, which the International Monetary Fund estimates is 2—5 per cent of global gross domestic product. The bulk of these funds are derived from the nearly US$400bn a year generated from the illegal drugs trade. The magnitude and seriousness of money laundering motivated the General Assembly of the United Nations in 1988 to adopt a universal pledge to put a halt to this activity.