Senate inquiry hears how organised crime is moving cash around Australia
Aussie organised criminals have been caught red handed moving cash from their illegal activities. Here’s what they were doing.
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Cash-in-transit services are being used to collect dirty money on behalf of criminal groups and transfer it into bank accounts without detection, because they are exempt from anti-money laundering laws, a Senate inquiry has been told.
Criminals are also “renting bank accounts” via the dark web for short periods to help them launder their illicit funds.
A submission to the inquiry by the Australian Federal Police has revealed how its Operation Ironside sting exposed how criminal groups are moving cash from their illegal activities.
“The operation identified the use of licenced cash-in-transit companies … to both collect illicit funds on behalf of criminal groups, including MLOs (money laundering organisations) and then transfer those funds into Australian and overseas bank accounts,” the submission said.
It also explained the process created a “buffer” for the criminal origins of the funds before those funds are introduced into the banking system.
“Money drives organised crime but it is still its biggest vulnerability,” AFP Acting National Manager for the Criminal Assets Confiscation Taskforce Stefan Jerga said.
The inquiry into the adequacy and efficacy of Australia’s anti money laundering regime oversighted by the watchdog AUSTRAC, has already been told organised and transnational criminal gangs see Australia as a honey pot and are laundering up to $50 billion a year of their ill-gotten gains through unregulated and “gatekeeper professions” such as lawyers, accountants and real estate agents.
The inquiry has also been told Australia has fallen behind the rest of the world in updating and expanding its anti-money laundering laws known as Tranche Two to include gatekeeper professions, and is considered a “laggard” – one of only three countries including Haiti and Madagascar – not to have done so.
The Financial Action Taskforce, (FATF) the global authority on anti-money laundering policies, has warned Australia needs urgent action to bring its regime up to speed.
The inquiry heard evidence on Wednesday from the Law Council of Australia denying lawyers are a high-risk sector.
But Dr Jacoba Brasch QC, the President of the Law Council, said there is no actual evidence the legal profession is a high or medium risk sector for money laundering.
“Lawyers in Australia are not a high risk,” Dr Brasch said.
Senate committee chair ALP Senator Kim Carr said in response: “The idea there are no crooked lawyers is incredible.”
Dr Brasch said there have been no convictions of lawyers for dealing with money laundering.
Mr Jerga later told the inquiry currently there are “matters before the courts in which lawyers are facing criminal charges”.
Dr Brasch said the Tranche Two recommendations would have the effect of creating “a government sanctioned Lawyer X situation”.
She also said it would be incompatible with legal professional privilege and would turn lawyers and their privileged information into law enforcement agents and data collectors.
Bradley Brown, National Manager Intelligence Partnerships for AUSTRAC, confirmed they have intelligence which shows some lawyers are involved in money laundering and terrorism financing.
The Real Estate Institute of Australia President, Adrian Kelly, also told the inquiry he “doubted” the amount of money being attributed to money laundering in the property sector could be “substantiated”.
He said he was not aware of any money laundering in the industry.
Mr Kelly also said there had been no discussions (this year) with law enforcement about the issues.
Ciara Spencer from the Department of Home Affairs said they are still working on internal policies for the Tranche Two recommendations and have not yet reached out to stakeholders or industry.
Originally published as Senate inquiry hears how organised crime is moving cash around Australia
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