Summary
A law enforcement investigation found that a number of individuals and organised crime syndicates were importing drugs into Australia by post. Financial intelligence from AUSTRAC revealed that suspects based in Australia were using remittance dealers to transfer funds to companies in China to pay for the drugs. This information led to multiple arrests in Australia and South America.
What to look out for
- Multiple ordering customers sending international funds transfer instructions (IFTIs) to the same, or similar, beneficiary customer.
- Individuals sending IFTIs from specific Australian locations to a common destination region in China.
- Significant cash deposits followed by outgoing IFTIs of similar amounts.
- Variations of addresses and names used to conduct multiple IFTI transactions.
The crime
The investigation focused on drugs imported into Australia from mainland China. Many of the suspects were Chinese nationals based in Australia, some of whom worked for organised crime syndicates.
The suspects ordered drugs, or chemicals to manufacture drugs, from companies in China using mobile phones, chat rooms and email. They paid for the drugs via IFTIs after depositing similar cash amounts into their own accounts, often using the same remittance service for both transactions. The Chinese companies then mailed the drugs or chemicals to the suspects by sea or air.
AUSTRAC’s financial analysis found the outgoing IFTIs were usually for amounts below the reportable A$10,000 threshold and often matched the value of the imported drug.
Authorities seized more than 73kg of drugs, along with drug-making equipment, weapons, counterfeit licences and more than A$150,000 in cash. Three suspects were found to be members of a Colombian-based drug syndicate and were arrested in South America, while 24 suspects were arrested in Australia. A further 22 suspects, who were not Australian citizens, were referred to Australian immigration authorities.
AUSTRAC’s contribution
AUSTRAC provided law enforcement with vital financial intelligence that helped with investigations. Our analysis found that a number of Australia-based entities who were known to have received drug parcels, transferred funds to a group of common beneficiaries in China. We also identified other suspects in Australia who were sending IFTIs to the same beneficiaries in China.
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