Every country needs a Financial Intelligence Unit (FIU) that plays an essential role in combating the criminal activities of money laundering and terrorist financing. FIU takes special care and efforts to receive, evaluate and share financial information. Any kinds of suspicious activities seen in international money transfers must be reported to the Financial Intelligence Unit of the respective country.
In Australia, the Australian Transaction Reports and Analysis Center (AUSTRAC), established in 1989 serves as the Financial Intelligence Unit of the country. What AUSTRAC does is “follow the money”! Keeping an eye on money to know its source and where it goes.
AUSTRAC collects information from legal entities and institutions, such as banks, government, money transfer agencies, insurance companies, real estate properties, and casinos. Once the financial data is collected it is analyzed to see whether it is related to money laundering, human trafficking, organized crime, or terrorist financing.
AUSTRAC shares its collected information, locally and internationally with the law enforcement agencies whenever required. It also provides expert financial intelligence to national security.
All the financial institutions in Australia have to follow certain guidelines of AUSTRAC when creating an account for a new client. They must comply with KYC (Know Your Customer) protocols and the CDD process thoroughly. Upon noticing any fraudulent financial activities, they must immediately report them to AUSTRAC. Those Suspicious Activity Reports (SAR), and suspicious customer accounts are tracked.
Those institutions and organisations that avoid reporting suspicious transactions will have to face various criminal sanctions or exceptionally high fines or legal penalties. Online money transfers, bank transfers, in-store money transfer etc. go through the surveillance eye of the Australian Financial Intelligence Unit (FIC), AUSTRAC. It is very crucial to protect the community from serious and organised crime.
