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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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BFCSA SPOTTED THIS IN 2003: Property is AUSTRAC's money-laundering blindspot

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Property is AUSTRAC's money-laundering blindspot

Australian Financial Review Aug 11 2017 10:00 PM

Duncan Hughes

 

A loophole for laundering vast amounts of cash into the nation's property market has been exposed by the Commonwealth Bank of Australia's money laundering scandal, according to security experts.

Stolen identities and illicit bank accounts used in the CBA scam to transfer money out of Australia are also the hallmarks of a sophisticated global network used to launder huge amounts into residential and commercial real estate, they claim.

The CBA action is also revealing regulators deep reliance on banks for intelligence on transfers of large amounts of money between accounts, which can result in cash transactions going unnoticed, they claim.

George Brandis, federal attorney-general, is expected to make an "imminent" announcement about boosting powers and resources of Austrac, the government agency that combats money laundering, according to a department spokesman.

But it is expected to fall short of extending existing laws to cover real estate agents.

"I believe the case for reform is compelling," said Malcolm Shackell, a forensic crime specialist and partner with global consultancy PwC. "Australia is under pressure from international agencies to broaden the scope of its regulations to cover industries outside of financial services, including real estate agents, jewellers, accountants and, potentially, conveyancing lawyers."

The government has to balance tighter controls with rising costs for business, he added.

Malcolm Gunning, president of the Real Estate Institute of Australia, also supports tougher financial scrutiny of buyers but wants it done in conjunction with the Australian Taxation Office and Austrac when property deals are settled.

Proposals to check at the point of sale, such as an auction, would be impractical and difficult to police, he said.

Under existing law, real estate agents and other businesses involved in buying and selling real estate do not need to identify where the money comes from or who is paying.

The law does not require real estate agents, lawyers, accountants or any other person involved in the deal to identify the beneficial owner of the deal. A beneficial owner enjoys the benefits of ownership though title is in another name, such as a company.

The Black Economy Taskforce is warning identity fraud is "systemically undermining" the nation's financial system and is expected to call for a new approach in its pending final report.

The scale of the problem has been highlighted by an alleged perpetrator of the CBA scam using 11 false identities to transfer tens-of-millions of dollars out of Australia, according to court documents.

Security specialists claim large amounts of money can be transferred into fraudulent bank accounts created with stolen identities purchased on the 'DarkWeb', which is like an eBay for criminals.

"Lenders have abrogated their responsibility to know and identify their client," said Geoff Stockton, chief executive of PRM Group, a risk management specialist. "People are taking advantage of being able to open an account, borrow and transfer cash from behind a computer."

Real estate agents report unprecedented numbers of overseas' buyers of residential and commercial property in Melbourne and Sydney paying cash, typically transferring payments from a local account.

Asians were last year the biggest investors in Australia, spending about $47 billion largely on residential and commercial property, according to the Foreign Investment Review Board.

 

An estimated 70 per cent of Chinese buyers pay in cash, according to Transparency International, an international non-government organisation targeting corruption.

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