AUSTRAC releases first national proliferation financing risk assessment

AUSTRAC has released Australia’s first national proliferation financing risk assessment, aimed at preventing financing that facilitates the proliferation of weapons of mass destruction.

Executive Summary

Australia is committed to ensuring the country and its financial system are resilient in preventing the proliferation of weapons of mass destruction (WMD) and the financing or support of these activities.

Australia combats proliferation financing through comprehensive sanctions regimes and a complementary anti-money laundering and counter-terrorism financing (AML/CTF) framework.

Australia also maintains robust legal and operational counter-proliferation and counter-proliferation financing frameworks. Australia’s National Intelligence Community (NIC) and other agencies work together to provide wide-ranging intelligence collection capabilities and a significant toolkit for disrupting threat actors and networks.

In October 2020, the Financial Action Task Force (FATF) – the international body that sets AML/CTF standards – revised Recommendation 1 (R.1) and Interpretive Note to R.1 of their global standards on countering financial crime. Under the amended recommendation countries should identify, assess, understand and mitigate risks associated with proliferation financing, specifically the potential breach, non-implementation or evasion of targeted financial sanctions (TFS) obligations relating to the DPRK and Iran.

This national risk assessment adopts a broad approach to proliferation financing risk. It goes beyond FATF R.1 requirements and assesses Australia’s exposure to a wide range of direct and indirect proliferation financing threats.

This assessment brings together expertise from across government and a wide range of private sector stakeholders, to provide a contemporary, consolidated picture of proliferation financing risk, how it is combatted and where efforts can be improved. Completion of this assessment is an important step in strengthening Australia’s efforts in combatting proliferation financing, as well as ensuring Australia meets its international obligations.

This assessment will also raise awareness among the private sector and encourage businesses to continue improving their investigations of proliferation financing activity.

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aml/ctfAUSTRACproliferationWeapons of Mass DestructionWMD