AUSTRAC released Australia's first risk assessment of the securities and derivatives sector yesterday. This is the fourth risk assessment of the financial sector undertaken by the Government's financial intelligence agency, developed in partnership with key industry experts, including stockbroking firms, online traders, banks, and partner agencies. The Minister for Justice Michael Keenan said that so far this year, AUSTRAC and its partner agencies "have detected and disrupted an international criminal syndicate that laundered more than $29 million in proceeds of crime in Australia." "The AFP and ASIC, working together through the AFP-led Fraud and Anti-Corruption Centre, also disrupted Australia's largest insider trading scheme totalling $7 million." "But we know criminal gangs will seek to exploit any weaknesses in our financial systems, putting our economy, national security, and international reputation at risk," Keenan said.  Overall, the report revealed that: the risk of criminal exploitation for the securities and derivatives sector is at the "high end of 'medium'";  fraud, including cyber-enabled fraud, was by far the highest reported threat to the sector (51 per cent), with a significant number of customer email accounts and trading accounts being hacked and, in some cases, money stolen;  money laundering and insider trading and market manipulation were equally the second highest areas of suspected criminal activity in the sector (21%); and tax evasion (two per cent) and terrorism financing (one per cent) were the least reported threats to the sector. AUSTRAC's acting CEO Peter Clark said his agency was working closely with its domestic and international regulatory partners and law enforcement to improve the security and stability of Australia's financial markets, "including the Australian Securities and Investments Commission (ASIC), which has provided us with invaluable support to develop this report." The main categories for discovered and potential crimes were: Money laundering: Suspected money laundering accounted for 21 per cent of SMRs in the dataset. Many of these involved well-established methodologies, including structured cash deposits and unusually large cash deposits and withdrawals. A significant number of SMRs described the placement of cash into general transaction accounts, which was subsequently transferred into trading accounts. Terrorism financing: The level of reporting on terrorism financing was very low. However, as the three SMRs detailed in the assessment highlight, the sector should not be complacent about the potential terrorism financing risk. Awareness of this risk may result in increased detection and SMR reporting. Fraud: The most common offence reported in SMRs from this sector was fraud, representing 51 per cent of SMRs. Half of these fraud-related SMRs were enabled by cybercrime, with many reporting entities assessing the threat of cyber-enabled fraud to be increasing - in both the volume and level of sophistication. Insider trading and market manipulation: Reporting on suspected cases of insider trading and market manipulation was also prevalent, accounting for 21 per cent of SMRs. These included individuals and entities conducting trades based on unpublished price-sensitive information or employing a range of tactics to manipulate share prices. Intelligence from an AUSTRAC partner agency also indicates that online trading platforms are increasingly being