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Money laundering – using business express deposit boxes and internet banking

AUSTRAC has released a new analysis report about serious organised crime groups (SOCG) using business express deposit boxes and internet banking to avoid ‘know your customer’ requirements.

AUSTRAC’s strategic analysis brief Use of business express deposit boxes to avoid reporting requirements provides information about money laundering methods and indicators that a person is laundering the proceeds of crime.

The practice involves using third parties, such as foreign students, to open bank accounts with internet banking facilities. The third party then hands over the account details and password to the crime group.

SOCG members then deposit illicit cash into the accounts through express deposit boxes, so the identification details of the person making the deposit is not reported to AUSTRAC.

The illicit funds are then transferred offshore using the internet banking facility.

SOCG members made 200 cash deposits totalling more than AUD11 million in 10 months.  

Banks have submitted suspicious matter reports to AUSTRAC about this activity.

AUSTRAC is Australia’s primary source of financial intelligence, providing expertise and global leadership on financial intelligence matters.

AUSTRAC publishes analysis reports and typologies to help Australian businesses identify money laundering methodologies being used.  

Sharing knowledge of money laundering methods and associated indicators may help businesses to detect and mitigate attempts to launder the proceeds of corruption.  

Australian businesses including banks, casinos, remitters and foreign exchange providers have submitted Suspicious Matter Reports (SMRs) and threshold transaction reports (TTRs) to AUSTRAC which have helped detect, disrupt and deter crime.  

Businesses concerned that a person might be undertaking a suspicious transaction can lodge an SMR with AUSTRAC or call the AUSTRAC Contact Centre on 1300 021 037.  

Attribution:  AUSTRAC CEO Mr Paul Jevtovic APM 

Available for interview: AUSTRAC CEO Paul Jevtovic.

Issued by AUSTRAC Corporate Communications:

Read AUSTRAC’s Use of business express deposit boxes to avoid reporting requirements strategic analysis brief online.

Last modified: 27/07/2015 10:29