Money laundering and terrorism financing are serious crimes with devastating consequences. The Australian Criminal Intelligence Commission reports that serious and organised crime groups are increasingly turning to the professions to exploit specialist knowledge and skills to launder profits within complex and globalised financial systems.

Anti-money laundering and counter terrorism financing (AML/CTF) regulation aspires to be risk based at all levels. This is the position taken by the leading global agency the Financial Action Task Force (FATF). The Law Council of Australia supports a risk based approach to regulation.

This report documents the positive attitudes and behaviours among the profession towards integrity, risk awareness and aversion, and to fulfilling statutory and professional obligations. While these traits emerge clearly, some vulnerabilities have been identified. The report demonstrates that these vulnerabilities vary to a degree across jurisdictions and practice types and activities. The report does not support an overall assessment of the Australian legal profession as high risk for money laundering or terrorism financing.

Importantly, the report shows that the legal profession is proactively working to mitigate the risk of being a party to money laundering and that, where vulnerabilities exist, those not already being addressed, can be addressed through augmentation of existing controls to which the Australian profession is already subjected.