Key points
- To conceal the proceeds of corruption and foreign bribery, public officials use similar money laundering methods as those used by organised crime groups. These include the use of corporate vehicles, third parties, professional facilitators, international funds transfers and international trade in services payments.
- Reporting suspicious matter reports (SMRs) to AUSTRAC provides both an indication of the activity of PEPs in Australia and the extent to which reporting entities have identified suspicious activity. SMRs are submitted by banks, casinos, remitters, foreign exchange providers and others.
Background
Corruption has significant effects on economic development, political stability and transnational crime(1). Similarly, the bribery of foreign officials (a form of corruption) is considered a widespread phenomenon in international business transactions, including trade and investment (2). Consequently, the Financial Action Task Force (FATF) has included corruption and bribery in the designated categories of offences for money laundering (3). To conceal the proceeds of corruption and foreign bribery, public officials use similar money laundering methods to those used by organised crime groups.
