AFP charges Sydney man over network suspected of laundering $123 million
The Australian Federal Police charged a 40-year-old Sydney man who allegedly controlled shell company bank accounts used by a network suspected of laundering over $123 million for organised crime syndicates.
The Australian Federal Police (AFP) announced on 28 October 2026 that a 40-year-old Sydney man was charged with one count of recklessly dealing with proceeds of crime worth $10 million or more and one count of recklessly dealing with proceeds of crime worth $100,000 or more. The charges carry maximum penalties of 15 years' and 10 years' imprisonment.
According to the AFP, the man is allegedly part of a network suspected of laundering over $123 million for organised crime syndicates. The network allegedly converted cash into cryptocurrency or sent it overseas through shell companies acting as corporate money mules, and the man allegedly controlled shell company bank accounts used for these transfers.
The AFP-led Taskforce Avarus, which includes AUSTRAC, the Australian Criminal Intelligence Commission and the Australian Border Force, began the investigation in February 2026. Search warrants were executed on 27 October 2026 at homes in Strathfield and Burwood, with AUSTRAC assisting. Police seized about $750,000 in cash, luxury handbags and watches, a cash-counting machine and electronic devices.
The man was refused bail and was due to appear before the NSW Bail Division Court on 28 October 2026. The AFP says investigations remain ongoing.
Why it matters to AML professionals
Shell companies used as corporate money mules let launderers move large sums while looking like ordinary businesses. AML professionals should test whether a business account's activity matches its stated purpose, especially when cash comes in and leaves quickly to crypto platforms or overseas. Joint taskforces that include financial intelligence units draw on the reports that financial institutions file.
Red flags in this case
- Business accounts with little trading history that receive large cash deposits and quickly send funds overseas
- Cash deposits followed by rapid transfers to cryptocurrency exchanges
- Several companies controlled by the same person or address showing similar pass-through activity
- Account activity that does not match the company's stated business or size
If this landed in your queue
- Compare the account's turnover with the company's stated business, staff and premises
- Identify linked companies through shared directors, addresses, devices or counterparties
- Trace where cash is coming from and where the money goes, including crypto and international transfers
- Escalate and file a suspicious matter report where activity looks like pass-through layering
Key terms
- Corporate money mule
- A company, often a shell, whose bank accounts are used to move criminal money for others.
- Shell company
- A company with little or no real business activity, sometimes used to hide who controls the money.
- Suspicious matter report (SMR)
- The Australian report that regulated businesses send to AUSTRAC when they suspect criminal activity.
Interview angle
How would you spot a business account being used as a corporate money mule?
Mention activity that does not fit the business profile, fast in-and-out movement of funds, cash followed by crypto or overseas transfers, and links to other similar companies. Explain how you would investigate and report.
Sources
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