FATF Status

Australia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Australia was undertaken in 2024. According to that Evaluation, Australia was deemed Compliant for 18 and Largely Compliant for 12 of the FATF 40 Recommendations. It remains Highly Effective for 1 and Substantially Effective for 4 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Australia has a robust legal framework aimed at combating corruption, characterized by a transparent government procurement system and active participation in international anti-corruption initiatives. The Criminal Code Act 1995 criminalizes bribery of foreign officials, imposing severe penalties for violations, while various national and state-level agencies work to ensure integrity in public service. Despite some corruption risks, particularly in foreign bribery and the mining sector, Australia is perceived as having low corruption levels, which does not deter U.S. businesses from investing or exporting to the country.

Australia's economy is characterized by a strong focus on foreign investment, particularly from the United States, which accounted for USD 174 billion in foreign direct investment in 2022. The country is recovering from a COVID-driven recession, with a low unemployment rate of 3.5% and a projected economic growth of 1.5% in 2023, despite facing challenges such as inflation and a skills shortage.

Australia maintains a generally welcoming investment climate for foreign direct investment (FDI), viewing it as crucial for economic growth. The U.S. is the largest source of FDI, with a stock totaling USD 174 billion in 2022, and while foreign investments are subject to a national interest test, the rejection rate remains low. Recent reforms have focused on enhancing national security, and the government is actively promoting investment in priority sectors, including clean technologies and critical supply chains.