Summary
AUSTRAC used suspicious matter reports (SMRs) from reporting entities to identify an offender who had multiple Australian bank accounts under a false name and who was moving large, unexplained amounts of cash domestically and overseas. The offender was found to be an international fugitive, wanted for cybercrime and fraud-related offences in the US. He was charged and convicted.
What to look out for
- Account activity inconsistent with customer/business profile.
- High-value cash deposits at multiple bank branches over a short period of time.
- High-value or structured cash purchases of casino chips.
- High-value transfers to accounts held in the name of a casino and gaming venue.
- High-volume and high-value incoming international funds transfers to Australia for no apparent reason.
- High-volume and/or high-value cash withdrawals at multiple bank branches and ATMs.
- Incoming international funds transfers from a high-risk jurisdiction.
- Large amount of cash used to place bets at a casino over a short period of time.
- Multiple cash withdrawals below the A$10,000 reporting threshold
- Multiple cash withdrawals conducted at ATMs and the same bank branch.
- Outgoing international funds transfers to pay out a mortgage.
- Refusal to show identification when undertaking cash buy-ins of gaming chips.
- Significant cash withdrawals over a short period of time.
- Third-party transfers to and from accounts for no apparent reason.
- Use of debit cards to purchase high-value goods.
The crime
The offender, an international fugitive, was wanted in the US for cybercrime and fraud. US authorities suspected he was part of an organised crime syndicate and published information about him online to alert the public and international authorities.
Working with Australian authorities, AUSTRAC analysed three SMRs from reporting entities and found that the offender held several Australian bank accounts in a false name, a joint bank account with a third-party and a business account for a cafe he operated.
AUSTRAC’s analysis of the SMRs showed that over 12 months, international funds transfer instructions (IFTIs) of A$6.6 million were deposited into the offender’s personal and business bank accounts in Australia. The IFTIs were sent from Canada, Hong Kong, Indonesia, Nigeria and the United Arab Emirates. Shortly after receiving the funds, the offender accessed them using:
- cash withdrawals at different bank branches
- cash withdrawals from ATMs at gaming venues
- purchases of high-value goods using a debit card
- withdrawal of a bank cheque made payable to a real estate agent.
Over the same period, the offender sent IFTIs of around A$318,000 to beneficiaries in the US, Canada, Germany, Luxembourg and Malaysia. He also made high-volume electronic transfers between his own bank accounts, and to and from the bank accounts of unrelated third parties in a short space of time.
He used large amounts of cash to buy casino gaming chips, in some cases using multiple structured cash buy-ins worth A$9000 to avoid reporting requirements. He made high-value cash transfers to accounts held in the name of a casino and gaming venue, and he placed high-value bets at multiple gaming venues over two months.
AUSTRAC’s analysis of the offender’s financial activities led to law enforcement authorities being able to identify, arrest and charge him with conspiracy to commit bank fraud, conspiracy to commit money laundering, and computer fraud.
Penalties
The offender pleaded guilty and was sentenced to five years and 10 months’ jail.
How business reporting helped
Reporting entities submitted eight SMRs highlighting the offender’s use of multiple aliases, suspicious IFTIs into and out of the offender’s accounts, high-value cash withdrawals and deposits, and the unexplained movement of funds between the offender’s bank accounts.
AUSTRAC’s role
AUSTRAC provided law enforcement with detailed analysis of the offender’s financial activities, as well as data identifying phone numbers and address details used by the offender, which ultimately led to his arrest.
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