Weekly Update: 18th Aug 2023

“More needs to be done to ensure cryptocurrency is not used as the getaway vehicle for scam money stolen from Australians.” 

– ABA CEO Anna Bligh commenting on the release of new data from the AFCX

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Feature:

AFCX data shows half of all scam funds are flowing to cryptocurrency   

New data from the Australian Financial Crimes Exchange (AFCX) shows 47% of scam funds were directed to cryptocurrency exchanges in June this year.  

ABA CEO Anna Bligh said funds that reach these exchanges are virtually impossible to recover. 
“Australia needs all sectors to continue the fight against scams – this includes government, banks, telcos, social media, law enforcement, crypto platforms and individuals.  

This data from the AFCX shows that an alarming amount of scammed money is being laundered through cryptocurrency exchanges. 

As well as stopping scams from reaching our phones, emails and social media, more needs to be done to ensure cryptocurrency is not used as the getaway vehicle for scam money stolen from Australians.” 
To protect customers, several banks have responded by imposing limitations on transfers to these exchanges.  

Read more in the Australian Financial Review: Crypto platforms a ‘getaway’ for half of scam proceeds. See our LinkedIn post here.  

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Parliamentary Update:

• During the National Cabinet meeting in Brisbane, the Prime Minister announced a number of housing initiatives including a national target to build 1.2 million homes with a $3 billion commitment to incentivise states and territories to undertake necessary reforms to boost housing supply and increase housing affordability.  
• The Prime Minister addressed the 49th ALP National Conference in Brisbane, talking about the economic impacts felt by Australians as a result of global events, inflation and supply chain shortages. 
• The PM also discussed housing pressures and the imperative for businesses to access a skilled workforce. 
• The ABA appeared at the Senate, Economics Legislation Committee inquiry into the (Treasury Laws Amendment (Making Multinationals Pay Their Fair Share—Integrity and Transparency) Bill 2023) on 15 August 2023.   
• The Senate, Rural & Regional Affairs & Transport References Committee held public hearings into branch closures in the towns of Carnamah and Berverley in WA on 15-16 August 2023.  

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Regulatory Update:

• ASIC is consulting on an extension of the design and distribution obligations (DDO) instrument for a further five years. DDOs require firms to design financial products to meet the needs of consumers, and to distribute their products in a more targeted manner.
• APRA released updated policy priorities for ADIs. Key policy priorities include liquidity, interest rate risk, additional tier 1 capital and capital framework updates.
• The RBA released an update from its August Payments System Board meeting. The Board determined not to further explore prohibiting card schemes and issuers from setting a default routing network on dual-network debit cards.
• APRA granted Avenue Bank an extension of their restricted ADI licence.

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Economic Update:

• Growth in the Wage Price Index reduced in the June 2023 quarter, down to 3.6 per cent, from 3.7 per cent in the March 2023 quarter. 
• Unemployment increased to 3.7 per cent in July 2023, from 3.5 per cent in June 2023. There were an additional 35,600 unemployed people in July, up to 541,000. At the same time the participation rate fell to 66.7 per cent, from an all-time high of 66.9 per cent in June 2023. 
• A further 930,000 people who are currently employed are looking for more hours – referred to as ‘underemployed’. This accounts for around one in ten people in the labour force. The underutilisation rate is generally higher for women, and substantially higher for younger age groups, with nearly one in four 15-24 year olds reporting underemployment, Figure 1. 

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Communications and Media:

• ABA CEO Anna Bligh was interviewed by ABC Melbourne Mornings host Virginia Trioli on scams ‘There are literally hundreds of millions of scams that Australians never even see, because their banks are investing. Between our four major banks and the three regional banks, they invest more in financial fraud than the entire budget for the Australian Federal Police.”
• Anna was also interviewed on ABC Kimberley about the work banks are doing to resolve identification issues for First Nations people in remote communities.’

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Events:

ABA members are invited to a complimentary lunchtime event on 28 August to hear about opportunities for small businesses across Australia, and in the heartland of Western Sydney.

Hosted by ABA CEO Anna Bligh and Business NSW Executive Director, David Harding, you will also hear from EY Oceania’s Chief Economist Cherelle Murphy, NAB’s Executive General Manager, Small Business Bank, Ana Marinkovic, and Business Western Sydney’s Executive Director David Borger.

Register your interest in the event by sending an email to events@ausbanking.org.au by 12pm Wednesday 23 August.

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Upcoming Submissions:

Published submissions

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Selected Media:

• AFR – Crypto platforms a ‘getaway’ for half of scam proceeds
• AFR – Stripe, 10x probed in ‘banking’ crack down  
• AFR – RBA warns the jobs market may be about to sour
• Australian – China Evergrande seeks US court approval for 19 billion debt
• Australian – Warning issues after convincing fake $50 note found in NSW
• Australian – Cash’s comeback gathers pace as digital money worries more people
• The New Daily – Australia Post reforms seal the deal for public ownership