Summary
A joint investigation between Australian and Indonesian authorities identified two Australians – a father and son – who were suspected of people smuggling. AUSTRAC’s analysis of data from banks and remittance agents helped link the pair’s suspicious financial transactions to the people smuggling operation and money laundering.
What to look out for
- Conflicting or incomplete identification details provided for different transactions.
- A customer getting angry when questioned about financial transactions.
- A customer making transactions that seem inconsistent with their profile and transaction history.
- International funds transfers from an individual account to several offshore third-party accounts.
- International funds transfers to high-risk jurisdictions.
- Large cash withdrawals from multiple bank branches on the same day.
- Structured international funds transfers within a short period of time.
- Use of overseas bank accounts.
The crime
While in Indonesia, Suspect A (the father) was approached by a group of around 70 Afghan nationals who each paid him up to A$10,000 in cash to transport them illegally to Australia.
Suspect B (the son) helped Suspect A transfer the funds to accounts in Australia and Indonesia via numerous international funds transfer instructions (IFTIs) deliberately structured into amounts below A$10,000 to try and avoid detection by financial authorities.
Suspect B also received large amounts of cash into his personal bank account in Australia from various third parties in different Australian states. He also made several significant cash withdrawals at three different bank branches on the same day.
Banks and remittance agents alerted AUSTRAC to the suspicious movement of funds by both suspects, and further analysis led to law enforcement arresting them before the illegal voyage could go ahead.
Both suspects were charged with people smuggling and money laundering offences. About A$60,000 held in suspect A’s daughter’s bank account were held by authorities as the proceeds of crime.
Penalties
Suspect A did not face trial. Suspect B pleaded guilty to receiving and dealing with money from the proceeds of crime and was given a suspended nine-month jail sentence.
How business reporting helped
Banks and remittance agents reported suspicious transactions by both suspects. These included multiple IFTIs sent between Indonesia and Australia for amounts less than the A$10,000 reporting threshold, and several high-value cash withdrawals and deposits.
AUSTRAC’s role
Using the information from banks and remittance agents, AUSTRAC was able to provide Indonesian and Australian authorities with evidence that linked both suspects to the people smuggling operation, and subsequently charge them with people smuggling and money laundering offences.
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