8 August, 2015
On 27 July 2015, AUSTRAC released a strategic analysis report entitled "Use of business express deposit boxes to avoid reporting requirements". This report revealed that serious organised crime groups (SOCG) were using business express deposit boxes and internet banking to avoid banks' Anti-Money Laundering and Counter- Terrorism Financing (AML/CTF) compliance programs.
AUSTRAC has found that SOCGs have been using third parties with little or no criminal history, such as foreign students, to incorporate companies and open bank accounts with internet banking facilities. The SOCGs then bulk deposit their illicit cash into the bank accounts through business express deposit boxes, meaning that the individuals depositing the funds are not identified. The SOCG then sends the funds offshore using internet banking.
AUSTRAC listed suspicious behavior indicators that should prompt reporting entities to submit suspicious matter reports to AUSTRAC.
View AUSTRAC's Use of business express deposit boxes to avoid reporting requirements report here
For further information, please contact:
Gordon Hughes, Ashurst
gordon.hughes@ashurst.com
