The Australian Transaction Reports and Analysis Centre (AUSTRAC) monitors financial transactions to identify money laundering, organised crime, tax evasion, fraud and terrorism financing.
In an interview, AUSTRAC chief executive Brendan Thomas said that criminals are increasingly turning to high-end watches and jewellery to launder money.
“It’s a big problem,” he told The Australian Financial Review.
“Luxury watches are a big source of people moving value around. You can wear them, so you don’t have to worry about declaring carrying $10,000 worth of cash if you’re wearing $20,000 worth of diamonds on your wrist.”
Authorities have given luxury goods, cash, and real estate the highest risk rating because they are highly effective for laundering money.
In a highlighted example, a police raid in Sydney uncovered an extensive range of designer watches, including a diamond-studded timepiece valued at more than $1 million.
Jeweller recently published a five-part series detailing proposed changes to Australia’s anti-money laundering and counter-terrorism financing regime, and the impact this reform would have on the jewellery industry.
The Financial Action Task Force (FATF) recently slammed Australia with a scathing review, citing extensive non-compliance with international standards.
Rachel Waldren, a financial crime partner at KordaMentha, said that with the following review expected in 2026, there would be little time to implement changes.
“FATF will consider what has been implemented at the time they come and do their evaluation, which may give us a technical compliance but not effective compliance,” she said.
“I think that exposes us to the grey listing.”
A grey listing would place Australia in the same category as Haiti, Syria, South Sudan, and Yemen, among others.
More reading
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