AUSTRAC has published a new analysis report “Use of business express deposit boxes to avoid reporting requirements” about serious organised crime groups using business express deposit boxes and internet banking to avoid ‘know your customer’ requirements.

AUSTRAC’s strategic analysis brief provides information about money laundering methods and indicators that a person is laundering the proceeds of crime.

The practice involves using third parties, such as foreign students, to open bank accounts with internet banking facilities. The third party then hands over the account details and password to the crime group.

Illicit cash is then deposited into the accounts through express deposit boxes, so the identification details of the person making the deposit is not reported to AUSTRAC.

The illicit funds are then transferred offshore using the internet banking facility.