Dissenting report from Labor Senators

1.1Labor Senators note that the Senate Select Committee on Perth Mint and Commonwealth regulatory compliance was originally due to report on 13December 2023.

1.2The purpose of the Select Committee was to inquire into and report on the corporate and regulatory compliance of Gold Corporation and its trading entity, The Perth Mint, with Commonwealth legislation.

1.3In reality, the Committee was used as a platform by some Committee members and members of the Western Australian Opposition to ventilate state-related issues and to attempt to duplicate the work of an independent regulator.

1.4Labor members of this Committee recognise that allegations of money laundering are extremely serious. Money laundering causes significant harm to the Australian economy and community.It is estimated that serious and organised crime, which includes and relies heavily on money laundering activity, costs Australia up to $60 billion each year.

1.5Labor members of this Committee also recognise that Australia’s law enforcement agencies and the Australian Transaction Reports and Analysis Centre (AUSTRAC), as the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regulator, are well equipped to identify and investigate this activity. Senate Committees should not attempt to duplicate or interfere with the important investigations or compliance activities of these agencies.

1.6Labor Senators support the important work that AUSTRAC undertakes as Australia’s AML/CTF regulator.AUSTRAC’s work includes ensuring regulated businesses, like Gold Corporation, comply with their AML/CTF obligations to manage their risks and protect them and the community from criminal abuse. Supporting and maintaining AUSTRAC’s independence is essential to our continued commitment to the fight against organised crime and money laundering.Any move that seeks to politicise the work of the regulator will put that essential work at risk and create a dangerous precedent.

1.7For this reason, Labor Senators do not support any recommendation that seeks to direct or interfere in the important work of the regulator.AUSTRAC publishes information about its enforcement actions to remain transparent and accountable. If there are genuine proposals to improve or change existing oversight mechanisms for AUSTRAC, a highly political and single-issue inquiry like this one is not the place to make them.

1.8Labor Senators note the enforceable undertaking given to AUSTRAC by GoldCorporation in November 2023 is ongoing. We support AUSTRAC continuing to work with the Board and Management of The Perth Mint in relation to this enforcement action.Enforceable undertakings are used by a number of Commonwealth regulators to ensure compliance with various legislation and regulations.Any attempt by a parliamentarian or any individual parliamentary committee to insert itself into these processes must be avoided.Labor Senators are concerned by any steps which would interfere with, harm, or politicise the work of any regulator.Labor Senators note that other parliamentary committees do not seek to insert themselves into the implementation of enforceable undertakings put in place by the Australian Securities & Investments Commission (ASIC), Australian Prudential Regulation Authority (APRA) or Fair Work Australia.

1.9We are concerned by comments and recommendations that imply AUSTRAC’s oversight of AML/CTF compliance has been insufficient.This is not borne out by any evidence provided in the course of the Select Committee’s inquiry.

1.10We remain concerned that the repeated requests for officials from AUSTRAC to appear before the Committee (up to six times in the course of this inquiry) risked interfering with the sensitive work of the regulator.

1.11Any recommendation that the members of this committee continue to be briefed by AUSTRAC following the conclusion of this inquiry is inappropriate. AUSTRAC reports to the Attorney-General under its governing legislation and already has a number of oversight mechanisms in place.

1.12The Labor members of the Committee do not believe it is the role of a Senate Committee to make recommendations on reporting by a state entity to a state parliament.We are aware of the evidence provided by the former Western Australian minister, the Hon Bill Johnston MLA, about the regular meetings and briefings he had with the Chair and management of The Perth Mint.

1.13During the conduct of this inquiry, leading members of the WA Opposition appeared before the Committee and repeated concerns that had already been raised in the media.Despite the protections provided by the Committee process, the WA Opposition was not able to present the Committee with any detailed evidence of criminal behaviour.Members of the WA parliament have numerous opportunities and processes (Question Time, questions on notice, estimates hearings, etc.) available to them if they wish to pursue their concerns.It is not the role of a Senate Select Committee to facilitate any further ventilation of their concerns given the lack of evidence provided to date.

1.14Labor members of the Committee remain supportive of the recent key appointments made by the WA State Government to the Board of The Perth Mint, along with the other changes made by both the state government and management of The Perth Mint to improve the governance and compliance of the Mint.We also note that the Western Australian Government has provided significant additional funding to The Perth Mint to strengthen their systems and processes to address any historic issues and improve operations.

1.15Reflecting on the commentary from the Chair about the willingness of various witnesses to appear before the Committee, Labor Senators believe it is important to note there were repeated attempts by members of the Committee to have former employees of Gold Corporation appear before the Committee. This was despite many of these individuals not being employed by the Corporation during the period that the Committee was examining.

1.16It is unfortunate that the resources of the Senate were used to ventilate what is primarily a state issue.Having said that, Labor Senators wish to record our thanks to all of the present and former staff at the Secretariat for their diligent work on the protracted inquiry.

Senator Glenn Sterle

Member

Australian Labor Party Senator for Western Australia

Senator Fatima Payman

Member

Australian Labor Party Senator for Western Australia