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
- International funds transfers to high-risk jurisdictions.
- Large cash deposits used to pay for international funds transfer instructions
- Third-party cash deposits.
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.
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