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, with severe penalties for individuals and corporations. While corruption is generally not seen as a barrier to business in Australia, risks do exist, particularly in foreign bribery and the mining sector.

Australia's economy is characterized by a strong openness to foreign direct investment (FDI), with the United States being the largest source of such investments, totaling USD 174 billion in 2022. Despite recent changes aimed at enhancing national security through stricter investment screening, the rejection rate for proposed investments remains low, and the economy is projected to grow by 1.5 percent in 2023, supported by a tight labor market and a declining inflation rate.

Australia maintains a generally welcoming investment climate for foreign direct investment (FDI), which is seen as vital for economic growth. The country applies a national interest test through the Foreign Investment Review Board, but the rejection rate for proposed investments remains low, particularly for U.S. investments. Recent government initiatives, including increased funding for clean technology projects and the National Reconstruction Fund, further demonstrate Australia's commitment to attracting foreign investment.