Austrac has issued a new financial crime guide to help financial service providers identify and report suspicious transactions indicative of criminals engaging in trade-based money laundering.

Trade-based money laundering is the process of disguising the proceeds of crime by moving funds through trade transactions, in an attempt to legitimise their illegal origin or finance illegal activities.

Indicators of trade-based money laundering include: customers suddenly being involved in the import/export of goods; customers who appear to conduct business exclusively with a single counterpart; an unexplained change in transaction volume and/or value; evidence of consistent and significant cash payments, including to previously unknown third-parties.

In Australia, goods at a high risk of being used for trade-based money laundering include recycled textiles, sugar, cement, precious gemstones, bullion, tobacco, liquor, scrap metals, solar panels, luxury cars, mobile phones and meat products.

Services that could be used for money laundering include software, virtual assets, trademarks, financial, gambling, consultancy and advisory services.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.