Reacting to a warning over potential illegal cash entering the country, Australia is considering broadening the scope of its anti-money laundering policies by including precious stone dealers and real estate agents, according to a Reuters report.
Though the tightening regulation would not target any particular country, Australian authorities have noticed “a surge of cash from wealthy Chinese buyers looking for a safe haven away from the market turmoil of their home market”. The report said: “Property has long been on Chinese buyers’ radar, but in recent months they have been snapping up Australia’s rare pink diamonds, parts of an unprecedented capital flow from China that is rattling Beijing.”
The Financial Action Task Force (FATF) of Australia told Reuters a lack of scrutiny by Australian authorities in the precious stones and property sectors was an increasing high risk in the global fight against money laundering and financing of extremists.
Under the existing Australian regulations, foreigners do not have to identify themselves nor their source of funds when buying precious stones or properties.
Australia produces 90 percent of the world’s pink diamonds. The price of the stone has nearly doubled in the last five years, according to the report.
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