Money laundering fears over foreign funds

A former head of the nation's anti-money laundering agency wants tough rules introduced to prevent Australia from becoming a safe haven for foreign corrupt funds.

Despite credible warnings that large volumes of illicit money leaving China are being laundered in Australia, a Four Corners investigation has found no domestic agency is charged with identifying the true source of foreign funds.

John Schmidt, who headed up AUSTRAC, has told the ABC program solicitors and real estate agents should be compelled to report suspicious transactions.