AUSTRAC releases non-bank lending and financing sector risk assessment

A money laundering and terrorism financing (ML/TF) risk assessment, released today, shows a medium level of ML/TF risk to Australia’s non-bank lending and financing sector.

The risk assessment finds that the non-bank lending and financing sector has a medium level of vulnerability to financial crime, with the overall money laundering and terrorism financing risk assessed as medium.

The main threat facing the sector is fraud, particularly loan application fraud, identity fraud and welfare fraud. Non-bank lenders and financiers are also a target for money laundering, relating predominantly to unexpected early loan payouts.

In producing this report, AUSTRAC analysed transactional and suspicious matter reporting by the sector between 1 February 2018 and 31 January 2019. We also engaged with a number of stakeholders, industry associations and experts, and partner agencies to collect information and insights about threats, vulnerabilities and consequences specific to the sector.

AUSTRAC expects the non-bank lending and financing sector to use this risk assessment to protect their businesses and the Australian community from criminal threats.

Upcoming risk assessments, focused on Australia’s banking sector, are due to be released in the coming months.

Download: Australia’s Non-Bank Lending and Financing Sector: Money Laundering and Terrorism Financing Risk Assessment (PDF, 665KB)