Money laundering crackdown

[Fred Flintstone]

Big write up in The Australian today about the AFP cracking down on money laundering of drug profits. Every time I see a black G63 G Wagen go past, I know the owner is up to no good.

Asian students are being recruited to drop large deposits into ATMs - called money mules.

I wonder if any of our friendly shop owners will get caught

[woodland]

how do WLs, who get paid mostly in cash, buy property? What do they say to their mortgage brokers? I have always wondered.

[AHLUNGOR]

how do WLs, who get paid mostly in cash, buy property? What do they say to their mortgage brokers? I have always wondered.

They all have wealthy family back home ?

[tpol]

how do WLs, who get paid mostly in cash, buy property? What do they say to their mortgage brokers? I have always wondered.

The mortgage broker are probably Asian and have something good going slicing out a percentage. Ask no questions and the money roles in

[Climax598]

how do WLs, who get paid mostly in cash, buy property? What do they say to their mortgage brokers? I have always wondered.
Smart one have ABN for GST, pay some income tax and put money in super with a accountant advised. Tips advised from punters. So don't wondered. Some have millions dollars house/Apartments. Some of the girls have a mission to retire at 40s and own a massage parlour.

[Fred Flintstone]

how do WLs, who get paid mostly in cash, buy property? What do they say to their mortgage brokers? I have always wondered.
After the banking Royal Commission five years ago, it became very difficult to obtain a loan without proof of legitimate income, recent pay slips, proper ID, and previous 2-years’ of tax returns. Low doc loans refers to incomplete business records, not incomplete personal tax returns. No lender in Australia will take the risk of non-compliance as ASIC will fine them. Besides, the lenders don’t want crap business from scum bag clients as the risk of default is too high.

So if a WL is buying a house, these are the only ways she can do this:

1. Pays cash. A full time girl at Ginza can make $300k+ tax free. After 4 years of work, she could buy an apartment
2. Overseas money from family
3. Laundered money from crime associates
4. A mug punter is going guarantor for her

[GoldfishMan]

After the banking Royal Commission five years ago, it became very difficult to obtain a loan without proof of legitimate income, recent pay slips, proper ID, and previous 2-years’ of tax returns. Low doc loans refers to incomplete business records, not incomplete personal tax returns. No lender in Australia will take the risk of non-compliance as ASIC will fine them. Besides, the lenders don’t want crap business from scum bag clients as the risk of default is too high.

So if a WL is buying a house, these are the only ways she can do this:

1. Pays cash. A full time girl at Ginza can make $300k+ tax free. After 4 years of work, she could buy an apartment
2. Overseas money from family
3. Laundered money from crime associates
4. A mug punter is going guarantor for her
She can easily buy property as long as she doesn't need to get a mortgage, ie. No scrutiny needed from a financial institution.

The lenders are bound by AML/KYC requirements, but all other actors in the property transaction are not. Realtors, conveyancers, solicitors, even the seller's bank, no need to for AML/KYC. As long as the buyer has enough money to pay for it, they don't ask questions.

This is why there is a push to legally require another party in the property transaction to take part in AML/KYC, eg. The conveyancer. Hah, good luck with that!

One of the things a bank looks for to classify a person as "high-risk" is whether they've "purchased a property without use of finance". So let's say you managed to get your house by paying cash. If you then try to get another with a mortgage, or try to refinance after the purchase to unlock liquidity, the banks may not lend to you because you paid cash.

This is in all their training docs for AML/KYC risk. They know what's going on, lol!