Australian financial services have had a history of exemplary control over the regulation of currency inside the country as well as beyond the borders. In recent years, however, that claim has been challenged by experts because of the rise of one of the most fundamental problems concerning money regulatory authorities — money laundering.
This problem has started surfacing to the extent that profits in the sector have started reducing relative to previous years, which is why the CEOs of major players in the market have decided to enforce stronger laws regarding the issue. The main problems and proposed solutions to them have been identified below.
Considering the fact that most of the cryptocurrencies, including bitcoins, are not centrally regulated by countries, it is not really hard to move money around using that channel. Cross-border transfers and beyond are not exactly difficult to make in the online world, which is why the committers of the crime have started using it rather frequently with the help of brokers who have access to such online channels.
The immediate step taken by the state is to find ways to regulate major currencies like bitcoins, the same way Japan is doing. The state hopes that through tapping into channels and establishing a regulatory authority, they can proceed to stopping threats of money laundering brought about by cryptocurrencies and cater to the need of the seemingly rising interest of the public in such currencies.
This is perhaps the direst problems of them all considering how developed countries are being targeted a lot these days. This not only questions the legitimacy of institutions like the CBA, but also raises a concern about the accountants, lawyers, and managers who allow money to be laundered for the sake of terrorism. Strong links have been established between this leakage of money and the involvement of CBA.
The state has moved to making measures such as encouraging public-private partnerships for the sake of intelligence sharing, so that any transactions which exceed a certain amount and do not belong to a known account can be checked for vital security. Although challenging the CBA is the equivalent of challenging the legitimacy of the state itself, these measures are indeed needed for Australia to meet one of its most prioritized goals.
Small and Medium Enterprise Slowing Down
SMEs hold a lot of importance for any country because, cumulatively, they contribute a lot to the economy of a country and attract a lot of investors. In recent years, the promotion of policies aimed at achieving a trade-friendly world has resulted in the rise of competitive industries from countries which were previously shunned from competing in international trades.
The Australian sector has taken a hit because many additions to these industries have not been able to show promise in their ability to give back loans, which is why executive authorities in these firms have resorted to investing more in newer industries, for which they send out a lot of money; sometimes legally and sometimes not so much.