Summary
AUSTRAC intelligence was used in an investigation into a drug trafficking syndicate suspected of supplying and distributing narcotics in Australia. Our analysis helped to locate three offenders, who were then arrested during a car park drug deal, and later convicted and sentenced.
What to look out for
- Australia-based customers transferring small, regular amounts of less than A$7000 overseas to the same recipient or recipients with variations of the same name.
- Structuring of cash deposits under the A$10,000 threshold transaction limit.
- Deposits followed by multiple withdrawals or domestic funds transfers to different people’s accounts.
- Customer with multiple accounts with one bank receiving multiple deposits in a short time.
- Customer's deposit activity not in line with their profile.
The crime
Law enforcement launched an investigation into a syndicate suspected of supplying and distributing narcotics in Australia for many years. The syndicate, made up of family members and associates, tried to import cocaine from the United Kingdom. When the cocaine importation failed, the syndicate arranged to import methamphetamine from Indonesia instead.
By monitoring the syndicate’s movements and the flow of funds, investigators were able to find and arrest three offenders during an attempted drug deal in a carpark. A search at the scene uncovered two kilograms of methamphetamine and A$320,000 in cash.
Penalties
The offenders were charged with drug possession and trafficking offences and dealing in the proceeds of crime. The primary suspect was sentenced to 11 years in prison.
How business reporting helped
Financial institutions submitted four suspicious matter reports (SMRs)and six threshold transaction reports (TTRs) about syndicate members and their associates. The reports revealed large cash withdrawals and deposits, and suggested that syndicate members were structuring cash deposits into their bank accounts to avoid reporting requirements.
AUSTRAC’s role
AUSTRAC analysed transaction reports to create a snapshot of the syndicate’s financial activities. We uncovered suspicious cash deposits and withdrawals consistent with the structuring or layering of funds. AUSTRAC’s analysis also identified other people linked to the syndicate.
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.