Summary
As part of a law enforcement investigation, AUSTRAC traced and analysed the financial activities of a syndicate suspected of trafficking women from Thailand to Australia to work in brothels. The information helped identify syndicate members in both countries, and led to the conviction of an offender who was running the syndicate’s operations in Australia.
What to look out for
- International funds transfers (IFTIs) to a country of interest to authorities.
- Large cash withdrawals in a short time frame.
- Multiple customers linked by common addresses, conducting international funds transfers to the same overseas beneficiary.
- Multiple international funds transfers below A$10,000.
The crime
An investigation by law enforcement found an Australia-based syndicate member was getting women trafficked from Thailand to work in brothels in Australia. The women were forced to work in the brothels to pay off large debts they owed the syndicate member for bringing them to Australia.
AUSTRAC analysis revealed the women were transferring funds into the syndicate member’s bank account, as well as the account of a person in Thailand suspected of recruiting the women and organising their passage to Australia. The money trail AUSTRAC uncovered led to the arrest and conviction of the Australia-based syndicate member on charges relating to visa fraud and running a business involving sexual servitude.
Penalties
The offender was jailed for two years and three months after pleading guilty to all charges.
AUSTRAC’s role
AUSTRAC analysed cash transaction reports and international funds transfer instructions (IFTIs) to piece together the syndicate’s financial activities in Australia and Thailand. We revealed suspicious cash deposits and withdrawals consistent with the structuring or layering of funds, and 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.