Major Money Laundering Syndicate Used Foreign Student Identities For Transactions

Police have smashed one of Australia’s biggest money-laundering syndicates, that “bought” the identities of hundreds of foreign students off the dark web to wash cash and take tens of millions of dollars offshore. 

Police will allege the ring laundered at least $62 million of criminal cash using dormant bank accounts of 250 students who had returned to China after studying in Australia. 

Detectives code-named Taipan, Criminal Proceeds Squad, raided six homes, searched storage facilities, arrested four men and a woman after a year-long investigation. More than $2 million was seized at one house, illicit tobacco and four luxury cars. 

Thousands of deposits into Melbourne ATMs were found moving money around Australia and internationally, according to Victoria Police. They believe the student identities and their bank accounts were bought back by the syndicate and moved back into Australia via the dark web. 

When it came to moving money physically, the syndicate used “money mules”, a single account would be used to make multiple transactions before moving on to another. 

Police say it was the biggest specialist money laundering ring ever uncovered in Australia. They said specialist money laundering syndicated are known to be used by other gangs like bikies, Middle Eastern crime families and Asian-based cartels, to move money globally. 

On Thursday afternoon, Police raided homes in Burwood, Box Hill, Blackburn, Caulfield North and Endeavour Hills, arresting four men and one woman, all in their 30s. 

The Burwood, Box Hill and Blackburn men were charged with Commonwealth money laundering, structuring charges and state proceeds of criminal offences. They were remanded in custody and will face Melbourne Magistrates’ Court on Friday. The man from Endeavour Hills and Caulfield North woman was released and are expected to be charged on summons. 

The luxury vehicles included a BMW X5, a Toyota Landcruiser, a Mercedes C200 Coupe and a Porsche. 

“These were people living a quiet and unremarkable life in the Melbourne suburbs, all the while operating a sophisticated criminal enterprise. Money laundering is not a victimless crime – these funds are used to operate criminal networks involved in a variety of crime types including the trafficking of drugs and illicit firearms.”

- Assistant Commissioner of Crime, Bob Hill

The head of the Victoria Police economic crime division, Detective Superintendent Geri Porter said “suspicious third-party deposits” spanned over fifteen months and that it became less explainable as COVID restrictions halted the flow of students into Australia.

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