• Contact
  • Feedback
Banking Day
  • News
  • Topics
    • All Topics
    • Briefs
    • Major Banks
    • Authorised deposit-taking institutions
    • Insurance, funds and super
    • Payments, mobile & wallets
    • Consumer lending
    • Mortgages
    • Business lending
    • Finance regulation
    • Debt capital markets
    • Ratings agencies
    • Equity capital markets
    • Professional services
    • Work & career
    • Foreign news
    • Other topics
  • Free Trial
  • Subscribe
  • Resources
    • Industry events
  • About us
    • About Banking Day
    • Advertise
    • Feedback
    • Contact Banking Day
  • Search
  • Login
  • My account
    • Account settings
    • User Admin
    • Logout

Login or request a free trial

Money laundering and the China bounty

18 February 2019 5:03PM
Chinese law enforcement agencies have resorted to the use of private sector "bounty hunters" to track down assets in Australia that are linked to Mainland corruption, as diplomatic tensions flare over money laundering and capital flight. Australia is growing increasingly concerned about the use of civil asset recovery agents, or private "bounty hunters", to bypass official channels for mutual legal assistance in these matters.Beijing, meanwhile, perceives Australia as offering a safe haven for kleptocrats and other financial criminals, including those who have absconded with the proceeds of Mainland investment fraud. Chinese officials are frustrated with Australia's failure to crack down on the laundering of funds through real estate, lawyers and accountants, according to Bill Majcher, a civil asset recovery expert who works closely with the Chinese Ministry of Public Security.A documentary on ABC's Four Corners will show the "thin line" these asset recovery agents walk under Australian law. It will also demonstrate the vulnerability of Australian real estate for money laundering, with suspected proceeds of crime being moved via companies with nominee directors to be parked in property investments. The documentary explores cases involving Queensland real estate agents, accountants and law firms, which have been arranging complex deals on behalf of high-profile Chinese nationals. On the other side of the ledger, it also explores the activities of contractors who are tracking down these assets on behalf of Mainland authorities.Chinese organised criminals, money launderers and legitimate investors view Australia, New Zealand and Canada as property "safe havens". This perception is fuelled by the countries' stable economies, lax anti-money laundering oversight for real estate purchases, strong rule of law and tough extradition requirements. It is difficult for gatekeeper professions, which do not have AML/CTF obligations, to differentiate between legitimate and illicit funds that flow through their business accounts.Majcher, who has spent his career working as a police and private sector anti-money laundering operative, said interest in commercial recovery services had surged under operations Sky Net and Fox Hunt. Chinese government agencies had grown impatient with the glacial pace of Western criminal law enforcement, Majcher said. They were trying to accelerate that process by using lawful civil recoveries to obtain criminal assets, as well as targeting legitimate assets that have been moved out of the country in breach of capital controls."The Ministry of Public Security (MPS) definitely appears frustrated. From my perspective, the legal system in the West is rooted in the principle that an accused is innocent until proven broke. I have shared that viewpoint with some individuals in the MPS and received no disagreement," he said. Some of the people China is pursuing in Australia were employees of state-owned enterprises with annual incomes of around A$30,000 who have amassed fortunes of up to A$500 million during their careers, Majcher said."I've advocated to the Chinese that in many cases, civil asset recovery litigation is the most efficient way to proceed as the criminal justice system is heavily slanted in favor of lawyers and criminals regardless of their origin."Civil asset recovery operations have

I'm a returning subscriber

*
Password reset *
Login

Request a free trial

  • Emailing you the news at 7am.
  • Covering core lending and funding issues, strategy, payments, regulation, risk management, IT, marketing and more.
  • Original news and summaries of major stories from other media – ditch your newspaper subscriptions.
  • Focused on banking and finance, saving you the time spent wading through newspapers and other services.
  • With reporting from former editors and senior writers from the AFR and The Australian.
  • Configured for your phone, laptop and PC.
Free trial Banking Day

Copyright © WorkDay Media 2003-2025.

Banking Day is a WorkDay Media publication

WorkDay Media Unit Trust

  • Privacy policy
  • Terms of access and use