Summary
As part of an investigation into criminal networks laundering money in Western Australia, AUSTRAC and WA Police identified two offenders who were depositing and receiving large amounts of cash into their bank accounts. Further investigation showed that the funds came from the proceeds of illegal cannabis-growing, and the offenders were arrested and charged.
What to look out for
- Frequent ATM deposits from other people into a customer’s bank accounts.
- The customer depositing significant amounts of cash.
- Structuring of multiple cash deposits below A$10,000 to avoid reporting obligations.
- Transactions that are inconsistent with a customer’s profile.
The crime
AUSTRAC and Western Australia Police were investigating the use of intelligent deposit machines by criminal networks to launder money from the sale of methamphetamine in Western Australia. Intelligent deposit machines are a type of ATM that accepts cash and cheque deposits and credits them to the recipient’s account. The funds are then available for immediate transfer to other accounts both domestically and internationally.
During the investigation, AUSTRAC identified two people who were making significant cash deposits and receiving large structured ATM deposits into their bank accounts in Perth. Financial investigators and police analysed the bank accounts and found that more than A$1.2 million had been deposited over nine months. The investigation linked the funds to cannabis production across Western Australia.
The bank accounts were frozen and police executed search warrants at the offenders’ homes, finding and seizing more than A$10,000 in cash. The two offenders were charged with dealing with property reasonably suspected of being the proceeds of crime valued at A$100,000 or more.
AUSTRAC’s role
AUSTRAC referred the two offenders to the police, who were able to link the transferred funds to criminal activities and resulted in their arrest on Commonwealth money laundering offences. Western Australia Police also restrained bank accounts held by the individuals containing over A$1 million.
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.