Gangs Recruit Australian Money Mules for Up to AUS$500 and Commission, AUSTRAC Warns

Gangs are offering Australian money mules up to AUS$500 and a commission for the use of their bank accounts, according to the country’s financial intelligence agency, AUSTRAC.

AUSTRAC issued new guidance to businesses yesterday to help them identify international students and temporary residents being exploited as money mules. The agency noted that criminal networks are “known to target international students and other temporary residents” for this illegal activity, where individuals receive and move illicit funds.

“Some money mules are unaware this activity is illegal, often believing their facilitation of fund transfers constitutes legitimate employment,” AUSTRAC explained.

In its guidance, AUSTRAC provided examples of potential mule activity for businesses to monitor. “Money mules will often conduct regular ATM cash deposits before rapidly transferring the money to money remitters, digital currency exchanges and internationally, predominantly to South Asia,” the guidance stated. “These transfers are disproportionately higher than expected wages for a student and are often made to countries inconsistent with the account holder’s home country, or ethnic or cultural background.”

The agency highlighted that international transfers are frequently sent during periods of high account activity, with large sums “being consolidated and sent on the same day or during a short period of time.” Additionally, low-value ‘test’ transfers, typically under $10, have been identified.

“Mules are paid anywhere between $200 to $500 for the use of their own accounts, and may receive about 10 per cent commission on funds received into nominal accounts they operate,” AUSTRAC noted.

Tim Stainton, a Detective Superintendent at the Australian Federal Police, pointed out that criminals are increasingly targeting foreign students to act as money mules, offering them payment to receive money and transfer it to another account. “The money being transferred is often the proceeds of a crime which can then be used by organised crime syndicates to fund other criminal ventures like drug importations, cybercrime, terrorism and human trafficking,” he said. Stainton emphasized that in Australia, participating in money muling is a serious criminal offense with potential penalties ranging from 12 months to life in prison. He also warned that mules risk breaching their bank’s terms and losing access to their accounts.

AUSTRAC also cautioned that bank accounts are frequently purchased from students who are permanently leaving Australia. “Purchases for plane tickets and travel-related expenses may be seen before activity temporarily ceases, indicating the individual has departed Australia,” the agency reported. “Shortly after, online banking profiles are used by the network to open new accounts, indicating they are under the control of the criminal network.”

The financial crime guide on money mules was developed by Fintel Alliance, a public-private partnership led by AUSTRAC, with contributions from the Australian Federal Police (AFP) and the Australian Border Force (ABF). The guide is based on intelligence collected and analyzed by these bodies.

AUSTRAC urged businesses to use a combination of the indicators in the new guide and their own transaction monitoring to identify suspected money mule accounts, and to report any concerns to AUSTRAC by submitting a suspicious matter report.

By fLEXI tEAM