Bosses put on notice over organised crime
High-flying executives of banks, pubs and clubs are being put on notice they could face criminal charges if their organisations fail their obligations to report suspicious financial activity.
In what would be a first in Australia, Brendan Thomas – the new CEO of the financial crimes watchdog Austrac – has warned he will use all options available to ensure organised crime cannot take advantage of slack administration to run money laundering operations.
“You know, I’ve just come from the state’s criminal justice system, where people are in jail for stuff much less serious than this,” Mr Thomas said.
“We want to make sure that people in charge of organisations, board CEOs, risk officers understand what those requirements are and implement them.
“Because if they don’t, they’re leaving us exposed and vulnerable to serious crime … to nasty people … I mean, these are not Hansel and Gretel on a picnic. These are nasty people, these people are not just involved in sly criminal activities. I mean, we are talking about human traffickers, international drug cartels. People full of violence and nastiness.
“This is serious international organised crime that’s doing significant harm to individuals. And we need to shut it off.”
Mr Thomas, who was previously deputy secretary of the NSW Department of Communities and Justice, has also been a member of the board of the NSW Crime Commission.
His mission in the new job is to expand its enforcement and, since taking over, eight infringement notices have been issued – the largest number in the past 10 years.
The infringements carry more than $100,000 in fines issued to individual lenders, investment companies in Victoria and NSW, and clubs including the Katoomba RSL for failing to provide annual reports.
Separately, Austrac’s financial intelligence analysts have been “instrumental” in following a money trail which helped smashed an alleged criminal syndicate.
Authorities claim a complex Chinese crime gang’s money laundering operation was allegedly dealing with more than $39m in proceeds of crime.
The operation resulted in four men being charged.
It was allegedly laundering more than $39m in proceeds of crime in just one month.
Austrac has also started an investigation into the huge international gambling company Bet365, after it was audited, to determine whether it is compliant with anti-money laundering and counter-terrorism financing laws.
Mr Thomas, who took over the role just three months ago, said the requirements for financial reporting are pretty clear and Austrac has legal avenues it may explore for the first time.