Summary
AUSTRAC’s financial intelligence helped law enforcement agencies dismantle a major drug syndicate operating in Australia and Vietnam. The syndicate had raised suspicion by using large cash amounts to pay for international funds transfers. The resulting investigation uncovered one of the most elaborate methamphetamine operations in Victoria's history.
What to look out for
- Financial activity that doesn’t match an established customer profile.
- Large international funds transfers to common beneficiaries.
- Large amounts of cash to pay for international funds transfers.
- Multiple customers conducting international funds transfers to the same overseas beneficiary.
- Multiple international funds transfers to a high-risk jurisdiction.
- Multiple international funds transfers to beneficiaries with the same address.
- Structuring of cash deposits and withdrawals over a period of time to avoid reporting requirements.
- Using false identification to conduct transactions.
The crime
Law enforcement targeted the drug syndicate after monitoring the financial activity and assets of members, most of whom were operating from Vietnam.
Over 12 months the syndicate sent A$24 million via international funds transfer instructions to Vietnam using remittance dealers. All IFTIs were paid for with cash. The syndicate also attracted suspicion by making transfers to common beneficiaries.
Eight syndicate members were arrested and charged with trafficking commercial quantities of methamphetamine.
How business reporting helped
The syndicate was the subject of 53 suspicious matter reports (SMRs), mostly from remittance providers facilitating the outgoing IFTIs to Vietnam.
Banks also submitted four SMRs covering suspicious cash-related activity by syndicate members, which included apparent structuring of account deposits and withdrawals.
AUSTRAC’s role
AUSTRAC’s financial intelligence detailed the syndicate’s international funds transfers over 12 months.
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