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.
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US prosecutors named three Westpac accounts held in the name of Technocash Ltd containing US$36.9 million as linked to Liberty Reserve, which they allege was at the centre of a US$6 billion money laundering operation spanning 17 countries. The indictment lists those Westpac accounts as forfeitable property and demands they be forfeited to the US government.
Liberty Reserve was a Costa Rican company that US prosecutors say was at the centre of a US$6 billion (about $6.3 billion) money laundering operation. The indictment alleges 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 Sydney-based Technocash Ltd containing US$36.9 million. US prosecutors included those accounts on a list of 'forfeitable property' and are demanding the funds be forfeited to the US government.
Westpac would not say if the funds had been frozen. The bank said it has been working with authorities and has 'rigorous processes in place to combat money laundering,' and that it has been cooperating with regulators and law enforcement agencies.
No. The article notes that no other Australian banks are named in the indictment besides the Westpac accounts.
US authorities made a formal request for Australian involvement. The matter has been investigated by agencies including Austrac and the Australian Federal Police, and Austrac said Australian authorities are liaising with US counterparts on the case.
According to the indictment, after authorities tried to seize Liberty Reserve accounts in Costa Rica, 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.
Austrac's annual report, cited in the article, shows there has been a 230% increase in the number of suspicious matters and transactions over the past five years, indicating rising reporting activity and concern about suspicious transactions in Australia.
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