Senator TIERNEY (2:46 PM) —My question is addressed to the Minister for Justice and Customs, Senator Vanstone. Will the minister outline to the Senate the government's strategy to counter serious crimes against the Australian community, such as money laundering, drug trafficking and people smuggling?

Senator VANSTONE (Minister for Justice and Customs) —I thank Senator Tierney for the question. It is a very astute question. Senator Cooney or Senator Tierney rightly knows—and I am sure that Senator Cooney knows—that money laundering is a very serious offence and that, if you chase the money, you will get the criminals. There is an Indonesian saying: ada gula ada semut. That means: where there is sugar, there are ants. That is the principle on which all money tracking agencies work: if you follow the money, you get the big-time crooks.

The PRESIDENT —The level of noise in the chamber is unacceptably high. I remind senators of the standing orders and their obligation to abide by them.

Senator VANSTONE —So, in answer to Senator Tierney's question, it is critical that, if any government wishes to give its law enforcement agencies the capacity to fight serious crime, it must provide the law enforcement agencies with financial intelligence. AUSTRAC is the government's financial intelligence agency. It is headed by Elizabeth Montano, who I believe has bipartisan support. She was first appointed by Labor and was reappointed by this government, and she has this government's complete confidence. She knows how to spend money well and effectively and to achieve results. She is, in fact, the most senior woman in law enforcement in Australia.

AUSTRAC regulates the financial system to detect and deter misuse by criminals. It is excellent value for taxpayers' money. By the nature of its work, it is not known by many Australians—although some interested in law enforcement do know—just how good a job it does. AUSTRAC targets all suspicious transactions, all cash transactions over $10,000 and all international funds transfers, and it ensures that financial institutions comply with a 100-point ID check. Last year there were about seven million financial transaction reports received. AUSTRAC's work in tracking dirty money allows the Federal Police, the National Crime Authority, Customs and state law enforcement to break up organised criminals involved in fraud, illicit drugs and people smuggling. The annual report recently tabled outlines a number of investigations by the Federal Police, Customs, the National Crime Authority and the tax office, all of which have received invaluable assistance from AUSTRAC. AUSTRAC intelligence was used by partner agencies in 628 investigations, of which 430 were regarded as significant.

Just let me give two examples. The tax office indicates that, over the last five financial years, $160 million—or $44 million in 1999-2000—in additional tax and penalties was raised by the tax office. That can be attributed solely to financial transaction reporting by AUSTRAC. So, without AUSTRAC, there would be $160 million less in additional tax and penalties raised by the tax office. Similarly, the New South Wales Crime Commission's use of FTR information has led to a dramatic increase over the last year in the value of proceeds restrained to $38.4 million, up from a mere $12 million the year before.

AUSTRAC data can be used to reveal identities of unknown persons, to reveal associations between them, to target movements of expenditure, to determine the size of criminal syndicates, to locate proceeds and to reveal links between targets. The global nature of law enforcement means that AUSTRAC has obviously an increased international role. It does that through the financial transactions task force and the Asia Pacific Group on Money Laundering. AUSTRAC needed more money when we came to government—it was already there when we came. We have given it more money, targeted money, and it is being used appropriately and successfully.