Use of regulatory regimes in preventing the infiltration of organised crime into lawful occupations and industries

Business ethics Organised crime Regulatory compliance Regulator strategy Governance Corruption Industrial relations Australia Victoria

The Commission's report covers a wide range of schemes such as licensing, audits, inspections, and various restrictions. The Commission was not asked to focus on specific industries, but to provide general guidance for application to any industry. The terms of reference were preventative. They were not directed at the investigation, prosecution or punishment of current or past criminal activity.

The Commission was not asked to recommend changes to the law. Instead the Commission has identified four main strategies to prevent infiltration by organised crime:

1.Assessing the existing regime. Does this industry already have a regulatory regime, and if so, is it working and being enforced?

2.Restricting entry through a licensing scheme. An effective scheme will allow the right people into an industry, while keeping the wrong people out. Licensing is not always an appropriate response, and may be resource-intensive. 

3.Regulating post-entry behaviour. This includes audits, inspections, and surveillance techniques, ‘know your customer’ schemes, and restrictions on cash-based transactions.  

4.Addressing the use of professional facilitators: Assistance for organised crime can be provided wittingly or unwittingly by professionals such as lawyers, accountants and real estate agents. The Commission suggests customer due diligence measures, professional education and liability measures to address this risk.

The report was tabled in Parliament on 25 May 2016.

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