In recent times, a troubling trend has emerged where international students and temporary residents in Australia are being exploited as “money mules” to transfer illicitly obtained funds. This growing issue has prompted the publication of a financial crime guide by a government body to address and mitigate these activities.
Online predators often target these students through social media and chat forums. Within Australia, criminals exploit students for illegal activities, either by offering monetary incentives or manipulating their student visas. Detective Superintendent Tim Stainton of the Australian Federal Police highlighted the risks, noting that these students facilitate the movement of criminal proceeds, which may fund organized crime, including drug importation, cybercrime, terrorism, and human trafficking.
Involvement in money muling is a severe offense in Australia, with penalties ranging from 12 months to life imprisonment. Additionally, participating students risk breaching their financial institutions’ terms and potentially losing their bank accounts.
To combat this issue, the Fintel Alliance, led by AUSTRAC, has created a guide to help government agencies and financial service providers prevent exploitation. The alliance is working closely with the Australian Federal Police and Australian Border Force. The guide aims to address the problem by explaining how criminal networks purchase bank accounts and IDs from international students. These criminals then use the students’ information to create companies for money laundering purposes.
Students from East Asia are particularly at risk, often being involved in fraudulent activities such as running fake companies or transporting money for a fee. These students face high risks of engaging in such activities due to various vulnerabilities.
Jon Brewer from AUSTRAC emphasized the need for financial service providers to watch for and report suspicious transactions to protect vulnerable individuals. It is crucial for these providers to be vigilant and report any suspicious activity they encounter to prevent financial crimes and protect those at risk. The newly published guide offers updated advice to help institutions safeguard against criminal exploitation.
Luke Sheehy, CEO of Universities Australia, affirmed the importance of preventive measures to protect students and maintain the integrity of Australia’s international education system. He stated, “Any illegal activity targeting international students is unacceptable and will have consequences. We want to ensure Australia remains a safe and welcoming place for international students.”
By implementing these measures, Australia aims to curb the rise of money mule activities and protect the integrity of its financial system and international education sector.