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Conclusion

The superannuation sector in Australia is faced with a serious and multifaceted criminal threat environment. The volume and value of money moving through the sector, and the number of member accounts at the national level, make it an attractive and lucrative target for both opportunistic criminals and well-resourced organised crime groups. The threat is exacerbated by increasingly sophisticated cybercrime capabilities. Terrorism financing activity presents a challenge for the industry and government given the significant consequences that can occur with small amounts of funds. AUSTRAC assesses that criminal entities will continue to exploit vulnerabilities specific to the superannuation sector and target funds with weaker detection and control mechanisms.

AUSTRAC believes that significant opportunity exists for superannuation funds to leverage this assessment and to expand their suspicious matter reporting and strengthen internal controls against financial crime. AUSTRAC will continue to support the sector by providing advice and guidance on ML/TF risks. In addition, AUSTRAC will monitor SMR trends after the publication of this assessment to determine if reporting levels have increased across the sector, and this information will inform future intelligence-led compliance activities.

Feedback

AUSTRAC is committed to continual improvement and values your feedback on our products. We would appreciate notification of any outcomes associated with this report by contacting us via riskassessments@austrac.gov.au

Last modified: 31/10/2016 07:57