Australia raids ‘sophisticated’ Chinese money laundering ring operating in ‘plain sight’

Australian Federal Police have dismantled a “sophisticated” Chinese crime syndicate accused of using a money transfer chain as a means to launder almost A$229 million (US$144 million) over the past three years.

The alleged boss of the gang was among those arrested, Assistant Commissioner Stephen Dametto said.

Dametto described the Long River network as a “highly-complex, sophisticated money laundering organisation that had entrenched itself into the very fabric of Australia’s financial services industry”.

Dametto added it sent alarm bells ringing among money-laundering investigators.

“It was just a gut feeling – it didn’t feel right,” he said in a statement. “Many international students and tourists had returned home, and there was no apparent business case for Changjiang Currency Exchange to expand.”

Assets worth US$106 million seized in Chinese-Australian crime ring bust

Police said the company, one of the largest independently-owned remitters in Australia, transferred more than A$10 billion (US$6.3 billion) in the past three financial years.

While most of the money was legitimate, police alleged the firm “facilitated a system for organised criminals to secretly transfer unlawfully obtained funds in and out of the country”.

The force said some of the laundered money was proceeds of crime, including from cyber-enabled scams and the trafficking of illicit goods.

Dametto also said the gang members used the ill-gotten gains to fund their lavish lifestyles.

“We allege they lived the high life by eating at Australia’s most extravagant restaurants, drinking wine and sake valued in the tens of thousands of dollars, travelling on private jets, driving vehicles bought for A$400,000 and living in expensive homes, with one valued at more than A$10 million,” he said.

The officer said the syndicate bought fake passports worth A$200,000 to flee the country if its activities were foiled.

The suspects – four men and three women – appeared in Melbourne court on Thursday.

The defendants were charged over allegations they conspired to conceal or disguise money or property believed to be proceeds of crime worth more than A$10 million between March 2021 and October 24 this year.