Staff at major Australian banks investigated for links to $229m money laundering syndicate

Employees at major Australian banks are under investigation over a currency exchange money laundering syndicate that allegedly washed $229 million of criminals’ cash.

Employees at major banks are under investigation over possible links to a money laundering syndicate accused of washing $229 million of criminals’ cash.

The Australian Federal Police arrested seven people on Wednesday accused of running the Changjiang Currency Exchange.

The company – which had 12 shopfronts across the country – was allegedly a front for a complex scheme that taught criminals how to set up fake companies and produce false invoices to hide their money trail.

Police allege illegal cash was moved in $10 million bundles, while the exchange also dealt with up to $10 billion of legitimate transaction over three years.

The AFP has smashed a money laundering syndicate in raids across Australia. Picture: Supplied

The Australian Federal Police said it was continuing to investigate the extent of any bank employees’ involvement.

“The investigation is ongoing and I’m not going to rule out any future arrests,” AFP Assistant Commissioner Stephen Dametto said.

He said banks working with the AFP had “played a significant part to disrupt” the group, which was known in underworld circles as the Long River syndicate.

The AFP has smashed a money laundering syndicate in raids on October 25, 2023.

Financial watchdog Austrac has suspended the currency exchange’s licence and its shops were closed on Thursday, with confused customers trying to find out what happened.

Police allege illegal cash was moved in $10 million bundles, while the exchange also dealt with up to $10 billion of legitimate transaction. Picture: Supplied

The National Australian Bank said on Thursday it “has zero tolerance for any criminal activity, particularly if it relates to our customers or colleagues.”

“We have been working closely with the Australian Federal Police on this investigation since December 2022 partnering with them to share intelligence and CCTV footage, as well as the secondment of a NAB employee to work directly with the AFP, to help catch the alleged suspects,” it said.

Westpac said its staff were not involved, while ANZ and CBA did not respond before deadline.

Australia’s major banks have been working with Austrac since 2017 to share information under an arrangement known as the Fintel alliance

The seven accused were charged with money laundering offences that carry a maximum penalty of life imprisonment.

They appeared in the Melbourne Magistrates Court on Thursday.

The AFP said bank staff have been charged with allegedly laundering almost $229 million. Picture: NCA NewsWire / David Crosling

Ji Lu, 28, was expected to apply for bail next week after the court heard her 21-month old child was being cared for by her mother while she was behind bars.

Married Kew couple Jin Zhu and Ye Qu, both aged 35, appeared in the dock together where the court heard they had two young children.

Australia’s major banks have been working with Austrac since 2017. Picture: Supplied

Glen Iris man Ding Wang, 40, had about 15 people sitting in the body of the court to see him brought into the dock.

The court also heard Balwyn North man Fei Duan, 37, had “very limited English – predominantly Mandarin” during his brief appearance, where an older woman sitting in the front row of the public gallery could be seen covering her face and sobbing.

Mr Duan was assisted by a Mandarin interpreter, who later also translated information to his co-accused, Vermont woman Jin Wang, 33, when she was brought into the dock.

They were both expected to make bail applications before their next court appearances in March.

All six accused who faced court on Thursday were in custody for the first time, with the entire group ordered to return to Melbourne Magistrates’ Court for a committal mention on March 13 next year.

Another co-accused, Balwyn man Zhou Chen, 37, faced court on Wednesday night, where he also was remanded in custody.

Originally published as Staff at major Australian banks investigated for links to $229m money laundering syndicate