AUSTRAC Intelligence Helps Crack Gold Laundering Case Linked to Gambling

AUSTRAC intelligence sparked an investigation that helped the Law Enforcement Conduct Commission (LECC) to uncover a NSW police officer who sold more than $1.3 million in family gold bars to fund a gambling addiction.

The officer was found by the LECC to have engaged in serious misconduct after taking 12 gold bars, weighing 50 ounces each that belonged to his uncle and was stored underneath his mother’s house.

He falsified know your customer forms to sell the bullion to 2 dealers, claiming the gold was a birthday gift or inheritance and then he used the proceeds on sports betting apps and later admitted to the false information stating he “needed the money”.

AUSTRAC first raised the alarm by flagging transactions, including significant gold sales to a bullion dealer with reported money laundering links.

Operation Dartmoor was launched and uncovered the full extent of misconduct.

The officer resigned from the NSW Police Force and has been referred to the Department of Public Prosecutions.

AUSTRAC CEO Brendan Thomas said the case highlights the risks facing the bullion sector.

“Gambling harm doesn’t just drain bank accounts, it can drive desperate people into crime,” Mr Thomas said.

“When gambling turns to addiction, people often look for fast money and that can mean stealing, fraud or money laundering.

“Bullion is portable, valuable and attractive to people wanting to use it illegitimately.

“If you trade in bullion, you are part of the front line in stopping its exploitation.

“Your AML/CTF controls are the difference between being a trusted dealer or a weak link for crime.

“Every transaction is a potential red flag – it’s your responsibility to look twice, and if needed, report it.”