AUSTRAC risk assessment of the securities and derivatives sector

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July 12 2017

Australia’s first risk assessment of the securities and derivatives sector has revealed how serious and organised criminals can, and have, exploited our financial system to engage in criminal activity.Overall, the report revealed that:

1.The risk of criminal exploitation for the securities and derivatives sector is at the high end of ‘medium’.
2.Fraud, including cyber-enabled fraud, was by far the highest reported threat to the sector (51%), with a significant number of customer email accounts and trading accounts being hacked and, in some cases, money stolen.
3.Money laundering and insider trading and market manipulation were equally the second highest areas of suspected criminal activity in the sector (21%); and
4.Tax evasion (2%) and terrorism financing (1%) were the least reported threats to the sector.