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 to combat corruption, characterized by transparent government procurement and active participation in international anti-corruption efforts. The Criminal Code Act 1995 criminalizes bribery of foreign officials, imposing severe penalties for individuals and corporations. While corruption is generally not seen as a barrier to business, risks remain, particularly in foreign bribery and the mining sector, with various agencies at both national and state levels dedicated to ensuring integrity and transparency.

Australia's economy is characterized by a strong focus on foreign direct investment (FDI), with the United States being the largest source, totaling USD 174 billion in 2022. The country has implemented various measures to strengthen national security in foreign investments while maintaining a low rejection rate for proposed investments. Despite challenges such as a tight labor market and inflation, Australia's economy is projected to grow by 1.5 percent in 2023.

Australia maintains a generally welcoming investment climate for foreign direct investment (FDI), which is seen as vital for economic growth. The U.S. is the largest source of FDI, with a stock totaling USD 174 billion in 2022, and while Australia applies a national interest test for foreign investments, the rejection rate remains low. Recent legislative changes aim to streamline the investment process, particularly for trusted partners, while the government actively supports investments in clean technology and critical supply chains.