Westpac named in $6b money laundering plan
According to prosecutors, a Costa Rican company called Liberty Reserve was at the centre of a $US6 billion ($6.3 billion) money laundering operation that spanned 17 countries, including Australia.
It is alleged tens of millions in proceeds of cybercrime including pornography, credit card fraud and identity theft were funnelled through shelf companies and banks around the world.
The indictment names three Westpac accounts held in the name of Technocash Ltd containing $US36.9 million in assets linked to the offences. It is demanding it be forfeited to the US government.
After authorities tried to seize Liberty's accounts in Costa Rica, the document says funds were shifted into "more than two-dozen shell company accounts held in locations around the world, including Cyprus, Hong Kong, China, Morocco, Australia and Spain". No other Australian banks are named.
It is understood US authorities made a formal request for Australian involvement, and the issue has been investigated by agencies including Austrac and the Federal Police. "Australian authorities are liaising with US counterparts in relation to this matter," an Austrac spokesman said.
The indictment document included the Westpac accounts in a list of "forfeitable property" that was linked to the offences.
Westpac would not say if the funds had been frozen, but said it had been working with authorities.
"We have rigorous processes in place to combat money laundering and have been working closely with regulators and law enforcement agencies," a spokeswoman said.
Sydney-based Technocash, which describes itself as a global leader in moving money, did not respond when contacted by BusinessDay. According to Austrac's annual report, there has been a 230 per cent increase in the number of suspicious matters and transactions over the past five years.
Frequently Asked Questions about this Article…
US prosecutors named three Westpac accounts held in the name of Technocash Ltd as containing US$36.9 million in assets linked to an alleged money‑laundering scheme tied to Liberty Reserve, and they are seeking forfeiture of those funds to the US government.
Liberty Reserve was a Costa Rican company that US prosecutors allege was at the centre of a US$6 billion (about A$6.3 billion) money‑laundering operation spanning 17 countries, with tens of millions from cybercrime funnelled through shell companies and banks worldwide.
The indictment specifically names three Westpac accounts held in the name of Sydney‑based Technocash Ltd, containing a total of US$36.9 million linked to the alleged offences.
The article says Westpac would not confirm whether the funds have been frozen. US prosecutors are demanding the funds be forfeited, and Westpac says it is working with regulators and law‑enforcement agencies.
Australian authorities including Austrac and the Federal Police have investigated the matter. Austrac stated it is liaising with US counterparts, and it is understood the US made a formal request for Australian involvement.
No. The indictment lists the Westpac accounts among forfeitable property linked to the offences, and the article notes that no other Australian banks were named.
Prosecutors allege proceeds from cybercrime — including pornography, credit‑card fraud and identity theft — were funnelled through shelf companies and banks as part of the Liberty Reserve operation.
The article does not describe a direct financial impact on investors. It notes the US indictment names Westpac accounts and seeks forfeiture, Westpac says it has rigorous anti‑money‑laundering processes and is cooperating with authorities, and Austrac reports a large rise in suspicious matter reports. Everyday investors should monitor official updates from Westpac and regulators for any material developments.
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