Summary

AUSTRAC helped an investigation into a remitter suspected of laundering illicit funds for crime syndicates. Transaction reporting by banks had revealed a shortfall between the amount of money the remitting company claimed to have sent overseas and the amount it actually remitted.

What to look out for

The crime

Law enforcement investigated a remittance company and its directors who were suspected of laundering illicit funds for criminal syndicates and individuals.

The company operated as a legitimate remitter, sending funds mainly to individuals in Iran and Iraq, however transaction data submitted by banks where the remitter was a customer revealed a A$2.34 million shortfall between the amount of money the remitter claimed to have sent overseas and the amount it actually remitted.

The bank transaction data also showed the remitter made significant cash deposits of A$10,000 or more totalling A$3.14 million.

The company director pleaded guilty to dealing with money reasonably suspected to be the proceeds of crime.

Penalties

The company director was sentenced to three months’ jail with an 18-month good behaviour bond. He also forfeited A$225,000.

How business reporting helped

Transaction reporting by banks was crucial in revealing the shortfall between the amount of money the remitter claimed to have sent overseas and the amount it actually remitted. It also showed the company made A$3 million in cash deposits.

AUSTRAC’s role

Along with providing analysis about the movement of funds, AUSTRAC’s financial intelligence identified additional entities, bank accounts and telephone numbers associated with the remitter.

This guidance sets out how we interpret the Act, along with associated Rules and regulations. Australian courts are ultimately responsible for interpreting these laws and determining if any provisions of these laws are contravened. 

The examples and scenarios in this guidance are meant to help explain our interpretation of these laws. They’re not exhaustive or meant to cover every possible scenario.

This guidance provides general information and isn't a substitute for legal advice. This guidance avoids legal language wherever possible and it might include generalisations about the application of the law. Some provisions of the law referred to have exceptions or important qualifications. In most cases your particular circumstances must be taken into account when determining how the law applies to you.

Last updated: 5 Apr 2023
Page ID: 125

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