The regulator has reminded the financial services sector that they must be equipped to spot and report transactions tied to child exploitation.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has urged the financial services industry to look out for child exploitation transactions, after revealing that more than 3,000 bank accounts linked to sextortion payments had been closed since June 2022.
The financial crime and intelligence agency pressed financial services providers to remember the role they play in detecting child sexual exploitation for financial gain, highlighting that its financial crime guide helps businesses spot the red flags for child sexual exploitation transactions and understand when to report.
Brendan Thomas, AUSTRAC CEO, said those in financial services needed to report suspicious activity.
“Financial services providers need to know what to look for so they can submit a suspicious matter report that enables us to act quickly and prevent harm,” Thomas said.
“For example certain patterns of behaviour, when combined, can point to suspicious activity.
“This might be a series of low value transactions under $500 that are categorised to appear innocuous such as ‘uniforms’ or ‘medical bills’, combined with purchases of spyware apps, virtual private networks, video capture software, or travel tickets to high-risk jurisdictions.
“Every report is an opportunity to stop a potential offender, stop the flow of dirty money and protect vulnerable children from abuse.”
AUSTRAC has a dedicated team that identifies potential child exploitation transactions. The agency also works with partners and task forces to expose criminal activity.
“Through close collaboration with law enforcement and partner agencies like the Australian Centre to Counter Child Sexual Exploitation (ACCCE), and the private sector via Fintel Alliance, AUSTRAC identifies perpetrators and makes it more difficult to profit from child abuse,” Thomas said.
“Suspicious matter reports, international funds transfer instructions and crypto payments feed into this intelligence, leading to arrests in Australia and overseas.
“No single agency can solve this alone but with the vigilance of the financial sector, together we can help protect children and safeguard our community.”
AUSTRAC collects and analyses suspicious matter reports shared by financial service providers, like banks, remitters, digital currency exchanges, and payment platforms, and these form the basis of financial intelligence used to detect transactions linked to for-profit child abuse.
It recently warned of sextortion as a growing child sexual abuse threat.
The type of crime disproportionately affects under-18s and involves victims being coerced by online offenders into sending sexualised images, often with the offender pretending to be another young person. The offender then threatens to share the content with others unless their demands are met.
Despite paying an offender, the victim may continue to be threatened or extorted for additional money.
[Related: Banks and trade bodies push scam awareness to fight fraudsters]
