Australian banks unknowingly involved in A$500M money-laundering scheme – AFR

Australian banks were unknowingly involved in a money-laundering scheme that processed A$500 million for South American cocaine cartels, The Australian Financial Review reported Jan. 19, citing the Australian Border Force.

More than A$100 million in drug money was funneled through Australian banks each year between 2014 and 2017 before being routed to other destinations. The illegal profits were often used to buy high-end electronics that were shipped overseas in containers in order to move the funds undetected.

The Australian Border Force confirmed the existence of the scheme, saying that at least 16 domestic and international financial institutions unwittingly became conduits for drug cartels, but declined to identify the banks or drug cartels due to operational security reasons.

The Australian Border Force investigation revealed that nine Australian financial institutions and seven international financial institutions unknowingly facilitated various banking and loan accounts for the suspect entities involved in the case, a spokesperson said.

The criminal network was discovered when law enforcement bodies noticed the valuations on the invoices being used by exporters and importers did not match, a technique used by criminals to transfer funds, the publication reported.