AUSTRAC releases updated risk snapshot of Australia’s financial crime landscape

Australia’s money laundering, terrorism and proliferation financing risks are becoming more complex and interconnected, driven by technology, globalisation and the growing overlap between legitimate and illicit activity, AUSTRAC says.

AUSTRAC CEO Brendan Thomas said three new national updates released today provide an up‑to‑date snapshot of how serious financial crime threats are evolving across the country.

“These updates show that Australia’s money laundering, terrorism financing and proliferation financing environments continue to rely on enduring channels – but they are being reshaped by technology, globalisation and increasingly sophisticated criminal behaviour,” Mr Thomas said.

“As these risks converge and become more complex, detecting illicit activity is harder.”

“That’s why it’s critical industry and government have a clear, current picture of where the risks are emerging and how they are changing.”

The three products are designed to be used alongside AUSTRAC’s national Money Laundering, Terrorism Financing and Proliferation Financing risk assessments released in 2024, giving businesses a dynamic, year‑on‑year view of Australia’s risk landscape.

Across all three risk areas, the updates highlight a growing reliance on lawful financial services, trade flows, professional facilitators and corporate structures to disguise illicit funds, often hidden within low‑value or routine transactions.

While the scale and nature of the risks differ, AUSTRAC says digitisation and emerging technologies – particularly artificial intelligence and virtual assets – are increasingly acting as enabling capabilities for serious financial crime.

“Criminals are increasingly using AI as a part of their money laundering toolkit— fabricating identities, forging documents and rapidly disguising the proceeds of scams. In some cases, technology is automating what used to be manual laundering techniques, raising the sophistication and scale of financial crime,” Mr Thomas said.

“Australia’s open, trade‑integrated economy and reliance on cross‑border financial and commercial systems heighten exposure to these risks.

“The annual updates support an ongoing risk assessment cycle and identify material changes, emerging vulnerabilities and new areas of concern as they arise, ensuring our collective understanding of risk remains current and proportionate.”

Mr Thomas said the updates are a critical foundation for the Government’s AML/CTF reforms.

“This is about building a system that’s fit for today’s risks and tomorrow’s threats – one that supports risk management, delivers better intelligence and keeps Australia aligned with global best practice.” 

Read the annual updates on AUSTRAC’s website.