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Taskforce Avarus will target criminals relying on elaborate schemes plus the expertise of “lawyers and accountants” to hide illicit cash.
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AFP unleashes taskforce to chase billions in money laundering
20 March 2023
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10 minute read
A special Australian Federal Police (AFP) taskforce has been set loose on criminals laundering cash “at an alarming scale” using techniques including fake bank accounts and relying on the expertise of “lawyers and accountants”, the force says.
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It believed money laundering schemes were funnelling billions through the financial system and property market using everything from cryptocurrency ATMs to baby formula.
Taskforce Avarus would attempt to halt the organised crime with much of it driven by drug trafficking, it said.
Recent investigations had revealed one Sydney gang laundered $1 million every hour for three to five hours last year.
The AFP said it had uncovered a web of complex arrangements including:
- Students, foreign nationals and others going from one ATM to the next making illicit cash deposits on behalf of organised crime.
- Money mules criss-crossing Australia by plane to collect cash for deposit.
- Millions stashed in safe houses around the nation.
- Parks and bushland used as “dead drop zones”.
- Criminal syndicates opening bank accounts in the names of law-abiding citizens to move money offshore.
AFP assistant commissioner eastern command Stephen Dametto said money laundering undermined national security, the economy and social security system.
“These money laundering syndicates being targeted by the taskforce are sophisticated, international groups with one purpose: to provide a shadow economy enabling crime,’’ he said.
"They exist only to launder money on behalf of organised crime and rely on the expertise of professionals, such as lawyers and accountants, to help them evade law enforcement.
“This dirty money that is laundered through our economy is not only bankrolling lavish lifestyles but also funding future crime, such as more illicit drug importations and weapons trafficking.”
Taskforce Avarus combined the firepower of the AFP, AUSTRAC, the Australian Criminal Intelligence Commission and Australian Border Force and would seek help from financial institutions and private industry.
It would also work closely with overseas law enforcement agencies, such as the Five Eyes Law Enforcement Group’s Money Laundering Community of Practice.
The AFP’s investigative resources now dedicated to the Taskforce had already executed 164 search warrants and made 42 arrests, with 66 charges laid involving more than a $250 million in cash and assets.
In February, the AFP raided 13 premises across Sydney and seized cash and luxury goods to the value of $200 million, including $30 million in cryptocurrency.
It said cryptocurrency allowed criminals to move money because it took only seconds to create a free, anonymous crypto account (or address) with a service provider. Crypto ATMs, prepaid debit cards loaded with cryptocurrency or online gaming sites could then be used to hide illicit funds.
Assistant commissioner Dametto said the criminals were enjoying the high life on the strength of money-laundering activities.
AUSTRAC deputy CEO intelligence, Dr John Moss, said there was an inaccurate perception that money laundering was a victimless crime.
“It’s important to understand that money laundering is not something that just happens in movies. It is a real-world crime with real-world consequences,’’ Dr Moss said.
“Criminals engage in the activities which are the most lucrative, like trafficking in drugs or humans. So when criminals are cleaning the money made from these crimes, people shouldn’t lose sight of the child that was exploited, or the violence and deaths caused by the trafficking of illicit drugs.”
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