Australia Country Summary

FATF Status

Australia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Australia was undertaken in 2024. According to that Evaluation, Australia was deemed Compliant for 18 and Largely Compliant for 12 of the FATF 40 Recommendations. It remains Highly Effective for 1 and Substantially Effective for 4 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Australia has a robust legal framework to combat corruption, characterized by transparent government procurement and active participation in international anti-corruption efforts. The country enforces strict laws against bribery of foreign officials, with significant penalties for violations, and various agencies work to ensure integrity in public systems. Despite challenges such as human trafficking and organized crime, Australia maintains a strong governance structure and law enforcement response to address these issues.

Australia's economy is characterized by a strong openness to foreign direct investment (FDI), with the United States being the largest source of such investment, totaling USD 174 billion in 2022. Despite implementing a national interest test for foreign investments, the rejection rate remains low, and the economy is projected to grow by 1.5 percent in 2023, supported by a tight labor market and a declining inflation rate.

Australia maintains a generally welcoming investment climate for foreign direct investment (FDI), which is seen as vital for economic growth. The country applies a national interest test through the Foreign Investment Review Board, but the rejection rate for investments remains low, particularly for U.S. investors. Recent initiatives, including increased funding for clean technology projects and upcoming changes to streamline investment from trusted partners, further enhance Australia's attractiveness for foreign investment.