Inside Long River alleged money laundering scheme

An alleged criminal network has been busted, accused of moving millions through a money laundering syndicate. Here's how it worked.

They knew how to set up fake bank accounts, understood Australia’s anti-money laundering tactics and cultivated a network of criminals to move billions of dollars.

But investigators claim the Long River syndicate made one mistake – they set up one of their money changing branches on the same street as the Australian Federal Police headquarters.

Sydney’s central business district was almost empty when the harbour city went into lockdown in 2021.

As most shops shut their doors, the Changjiang Currency Exchange opened up a new outlet in Sydney’s business district. Then another outlet was upgraded nearby. Opening one new outlet was unusual, but police claim the renovations too were suspicious.

“It was just a gut feeling – it didn’t feel right,” AFP Assistant Commissioner Stephen Dametto said.

“During COVID-19, AFP members were still coming into work, and while most of Sydney was a ghost town, alarm bells went off among our money laundering investigators when they noticed Changjiang Currency Exchange operating two new shopfronts in the heart of Sydney,” Asst Comm Dametto said.

“Many international students and tourists had returned home, and there was no apparent business case for Changjiang Currency Exchange to expand.”

The Changjiang Currency exchange in Goulburn St, Sydney. Supplied

The syndicate had already been hiding in plain sight before opening the new shopfronts.

It’s alleged the business model relied on getting legitimate customers through the door.

Changjiang made a virtue of its “law abiding” practices, with signs prominently placed in its stores warning about Australia’s anti-money laundering laws.

The currency exchange’s website was still spruiking this week that it was above board.

“Changjiang is a legitimate operating company approved by the Commonwealth of Australia, and the financial registration number for the Financial Transactions Report and Analysis Center (AUSTRAC) in the Australian capital is 100-572684,” the website said.

“We are registered with AUSTRAC on the Remittance Sector Register and are subject to obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. You can check our registration status on the AUSTRAC website.”

But authorities claim the whole business was just a front for the Long River money laundering syndicate.

The Long River is the English translation of Chang Jiang – the local Chinese name given to the Yangtze River that runs 6300km from Tibet to Shanghai.

It’s China’s food bowl, most of the country’s rice is grown along the floodplains near its lower reaches.

The Australian Federal Police will allege the Long River syndicate performed a similar role for Australian organised crime.

The money the group allegedly laundered was the lifeblood of their operations that allowed them to reinvest millions of dollars of illegal profits into more criminal activity such as drug shipments.

AFP Commander Stephen Dametto. Picture: NCA NewsWire / James Gourley

It is claimed members would meet up with criminal groups, likely to be major drug dealers, illegal tobacco wholesalers or cyber fraudsters, offering a bespoke service.

The syndicate allegedly coached criminals on how to beat the system and they also had insiders at some of Australia’s biggest banks.

Major banks – the CBA, NAB, Westpac, ANZ – and Bendigo Bank all helped the AFP with its inquiries.

“It is a highly-complex, sophisticated money laundering organisation,’’ Asst Comm Dametto said.

“We expect our charges will significantly impact on the amount of illicit money being remitted in and out of Australia in the coming days alone.”

The group allegedly spent $200,000 each on false passports in case they were ever rumbled by police.

The AFP will allege the group laundered at least $229 million of crooked cash.

However, that might only be a fraction of what they moved.

The group was also suspected of offsetting – a way of moving money around without a physical transfer.

For example, police believe an Australian criminal may have imported $10 million worth of cocaine from a Chinese organised crime group.

Police claim the Australian criminal offsets the debt for the drugs by buying a Chinese national a house in Sydney to the same value.

The Chinese national who received the house could then used money they have in China of the same value to pay out the drug wholesaler there.

No money ever crosses an international border but the account for the drug shipment was settled.

The Long River is the English translation of Chang Jiang – the local Chinese name given to the Yangtze River that runs 6300km from Tibet to Shanghai

The AFP spent 14 months working on the Long River group, with five full time forensic accountants and undercover officers working on the group.

The Australian Criminal Intelligence Commission and the Australian Border Force also assisted.

It’s alleged it was one of the biggest money laundering syndicates in the country uncovered in the “most complex AFP-led money laundering investigation in the nation’s history.”

However, it’s not the only one.

Australians spent more than $10 billion on illegal drugs each year.

The cash paid for the bag of cocaine being sold in fancy restaurants for $350, the ecstasy being sold in nightclubs and the ice being bought on city streets all gets washed somewhere.

But the other operators were smart enough to avoid opening on the same street as the people who are trying to catch you breaking the law.

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Originally published as Inside Long River alleged money laundering scheme