International students, as well as non-permanent residents in Australia, have been identified as high-risk groups vulnerable to being recruited as “money mules” – someone who transfers or moves illegally-acquired money on behalf of someone else.
Students already studying Australia are being recruited in order to earn money while studying, while other money mules are sent to Australia by criminal networks to exploit student visas, with no genuine intention of studying.
“The money being transferred is often the proceeds of a crime which can then be used by organised crime syndicates to fund other criminal ventures like drug importations, cybercrime, terrorism and human trafficking,” said Tim Stainton, detective superintendent of the Australian Federal Police, who said that international students are increasingly being targeted.
“In Australia, participating in money muling is a serious criminal offence. If convicted, you can face anywhere from 12 months to life in prison.”
Students participating in the crime also risk breaching the terms of their bank or financial institution and could lose access to bank accounts.
To combat the issue, the AUSTRAC-led public-private partnership – Fintel Alliance – has developed a guide in partnership with the Australian Federal Police and the Australian Border Force to assist government agencies and financial service providers in understanding and identifying signs of criminal networks exploiting such people.
According to the newly published guide, international students are being targeted by criminals through face-to-face contact or via online platforms such as social media and chat forums.
It goes on to highlight various methods of such illegal activity, including criminal networks purchasing bank accounts and identification details from international students who are either finalising their studies and imminently leaving Australia, or during their studies as a means for them to earn money while in the country.
Criminal networks then use these accounts and identities to launder funds. Students from East Asia are at high risk of being targeted of this particular method, according to the guide.
It highlighted other methods including students’ identification details being used to register companies, becoming directors for the purpose of establishing a front to launder illicit funds.
Other students are used as cash couriers to physically move money or launder funds through casinos, taking up to 10% commission for their involvement in the latter crime.
According to Jon Brewer, national manager of law enforcement and industry at AUSTRAC, the government body responsible for preventing, detecting and responding to criminal abuse of the financial system, criminal networks are “constantly looking” for ways to clean dirty money.
“Through profiling and transaction monitoring, financial service providers can target, detect and report financial transactions associated with money laundering via money mules,” he added.
“This new guide provides the latest advice on what financial institutions should be looking for to help protect vulnerable people from criminal exploitation.”
We want to make sure Australia continues to be a safe and welcoming country for international students
Luke Sheehy, Universities Australia
“Preventative measures to protect students and preserve the integrity of our world-class international education system are important and very welcome,” Luke Sheehy, chief executive officer at Universities Australia told The PIE News.
“Any illegal activity which targets international students is unacceptable and will have consequences,” Sheehy continued.
“We want to make sure Australia continues to be a safe and welcoming country for international students.”
