Summary
AUSTRAC’s analysis linking drug importations to international funds transfers helped convict an international drug trafficker for possession and attempted possession of 2kg of cocaine and heroin with a street value of up to A$493,240.
What to look out for
- International Funds Transfer Instructions (IFTIs) all paid in cash and below the reporting threshold of A$10,000.
- Transfers in multiple locations on the same day.
- Aliases and false identification.
The crime
Investigations by the Australian Federal Police and Australian Border Force identified an offender who was receiving drugs imported into Australia through the postal system.
AUSTRAC analysis revealed links between drug importations and international funds transfers to Brazil, Laos and Nigeria. The offender adopted a number of aliases and used false identification and personal information to transfer money.
The offender was charged with attempting to possess, or possessing, a border controlled drug and recklessly dealing in the proceeds of crime.
Penalties
The offender was sentenced to 10 and a half years in prison.
How industry reporting helped
Suspicious matter reports (SMRs) submitted by remittance service providers were important to the investigation, especially in helping to track the offender’s aliases.
Remittance service providers submitted SMRs that, along with international funds transfer instructions (IFTIs), showed the steps the offender took to avoid detection. These included making sure that IFTIs, all paid in cash, were kept below the reporting threshold of A$10,000. He also carried out transfers in multiple locations on the same day.
AUSTRAC’s analysis linked one alias to a driver’s licence number, which was then linked to another six aliases. Over an eight-month period, AUSTRAC received 11 SMRs mentioning this driver’s licence number.
AUSTRAC’s role
AUSTRAC’s data and analysis of the offender’s financial activities helped to convict him.
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