The Costs of Money Laundering

27 Nov

Have you ever asked yourself how much a money launderer makes?

The Australian Institute of Criminology (AIC) has recently provided some valuable insight.

The Costs of Crime

The latest AIC report estimates that the total cost of serious and organised crime in Australia for 2023–24 is up to $82.3 billion. This is the highest figure the AIC has ever published. Importantly, the increase reflects improved methodology and more accurate, recent data, rather than a sudden surge in criminal activity.

The report breaks down the various costs associated with serious and organised crime. These include:

Direct costs such as medical expenses, loss of productivity, and direct financial losses (e.g., fraud).
Consequential organised crime costs, meaning the costs of conventional crimes committed as a direct or indirect consequence of serious criminal activity (e.g., violent offences linked to drug use).
Indirect costs, including policing, investigations, victim support services, insurance, and investment in security measures.

These are costs borne by both the public and private sectors. Resources that could otherwise be directed toward health care, education, infrastructure and other essential community services.

Money Laundering

Money laundering is listed as a direct cost to Australian society. The AIC estimates that professional money launderers earned up to $586.2 million in 2023–24. This is considered a conservative figure, as it only accounts for proceeds of crime generated within Australia. Proceeds generated overseas and brought into Australia were excluded due to limited data.

The reliance on professional launderers stems from the scale and sophistication of many criminal operations. According to the AIC:

Around 25% of funds requiring laundering are processed by professional launderers.
Organised crime groups typically pay an average commission of 6.5% for these services.

Why This Matters

Money laundering is a profitable industry that imposes significant economic and social costs on everyday Australians. Anti-money laundering regulated sectors have a unique opportunity to be part of the solution, by lifting standards, strengthening controls, and reducing the channels criminals rely on to move illicit funds.

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