$12bn of Chinese property in Australia linked to money laundering scheme
A programme by ABC's Four Corners has been investigating the huge, $12bn influx of Chinese investment in luxury Australian real estate. This sector has grown over 400% in five years, and the programme is suggesting there are links to money laundering. The programme, which aired last night, exposed potential links to money laundering rings, with experts describing China as "by far the biggest exporter of illicit capital". The former head of Australia's anti-money laundering agency, John Schmidt, has called for new rules to force solicitors and real estate agents to report suspicious transactions, and prevent Australia from becoming a safe haven for foreign corrupt funds.

A new investigation has revealed how much money is flooding into the Australian real estate market from Chinese investors - and the potentially corrupt avenues it might be taking to get into the country.

ABC's Four Corners investigated the influx of Chinese investment on the Australian property market, which has grown by more than 400 per cent in just five years. Last year alone, Chinese nationals spent more than $12 billion on waterfront trophy homes and luxurious apartments.

The program - which airs Monday night - details how much money is coming into Australia, and what investors are looking for when they fork out millions.

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A new investigation has revealed how much money is flooding into the Australian real estate market from Chinese investors

The program goes inside a lavish investment meeting, where properties boasting impressive views are advertised to potential buyers.

'The priority is view… so waterfront with a view, with a nice house on it and preferably with a boat marina. You know, it's something money cannot buy in China,' a real estate agent interview by the ABC said.

Buyers - some who purchase their properties without ever seeing them - told the program their investment is pushing the local market to new heights.

'I think this is the best period of time in Australia's history. The vast capital from China, including entrepreneurs like us, have been looking for investment opportunities worldwide,' one multi-million dollar investor said.

According to ABC Four Corners, Chinese investment in Australia has grown by more than 400 per cent in just five years

The program claims up to $12 billion was spent last year alone, with much of the money going towards trophy homes with spectacular views

However, the program also explores the underbelly of these exorbitant investments, exposing potential links to money laundering rings, with experts interviewed describing China as 'by the far the biggest exporter of illicit capital'.

Australian Transaction Reports and Analysis Centre former boss John Schmidt said concerns surrounding the legitimacy of foreign investment are strong enough to justify Australia introducing strict new laws to protect itself from corruption.

'Real estate is recognised internationally as one of the means by which people will launder money, yet we ourselves have not covered the field as yet,' Mr Schmidt said.

He also said Australian authorities have not been given the required tools to tackle the alleged problem, and often relied on international authorities to tip them off.

'The priority is view… so waterfront with a view, with a nice house on it and preferably with a boat marina. You know, it's something money cannot buy in China,' a real estate agent interview by the ABC said

'To some degree if there has been criminality going on in the country which has generated the funds, the onus is on the country in which that has been happening to alert Australian authorities,' Mr Schmidt said.

However, the program also interviewed a former director of the Foreign Investment Review Board who said there is 'no concern of corruption'.

The former FIRB director, who spoke to Four Corners under the condition of anonymity, also said the different ways Chinese investors operate and their ties to the government need to be taken into account.

According to the program, Federal Justice Minister Michael Keenan said improvements are being considered as part of a review into Australia's Anti-Money Laundering and Counter-Terrorism Financing Act.

The Four Corners report The Great Wall of Money airs tonight at 8:30pm on ABC.

Australian Transaction Reports and Analysis Centre former boss John Schmidt said purchasing real estate, like this home in Sydney, is one of the common ways international investors launder money