Australia’s financial intelligence agency has urged banks, remitters, digital currency exchanges and payment platforms to sharpen their vigilance against transactions linked to child sexual exploitation for profit, using National Child Protection Week to highlight the sector’s frontline role.
AUSTRAC says the suspicious matter reports it receives from financial services providers, along with international funds transfer instructions and crypto payments data, underpin intelligence that supports law enforcement to identify and disrupt offenders in Australia and overseas.
AUSTRAC CEO, Brendan Thomas, said AUSTRAC works tirelessly to stop these appalling crimes.
“We have a dedicated team that identify potential child exploitation transactions and we work with partners and taskforces to expose criminal activity and hold those responsible to account,” Mr Thomas said.
“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.”
“Suspicious matter reports, international funds transfer instructions and crypto payments feed into this intelligence, leading to arrests in Australia and overseas.”
AUSTRAC cited a recent case it helped to uncover following the analysis of financial activity.
“For example, in August a Shepparton man pled guilty and was convicted for two counts of importing child sexual abuse material.”
“AUSTRAC had identified payments consistent with the purchase of child sexual exploitation material while the individual was overseas.”
“Following our referral, the Australian Border Force (ABF) intercepted the offender at the border, where they found images and videos classified as AI-generated or anime child abuse material on his device.
“He was sentenced to a good behaviour bond and subject to registrable offender reporting obligations for eight years, which also prevents him from further overseas travel for a period of time.”
Authorities also warned of the rapidly growing threat of sextortion, which disproportionately targets under-18s and typically involves offenders posing as young people to coerce victims into sending sexualised images. Offenders often threaten to share the material unless paid — demands that can include cash, gift cards, gaming credits, further images or sexual favours — and may continue to extort even after a payment.
Since June 2022, Operation Huntsman, a joint initiative between the ACCCE and AUSTRAC, has led to the closure of more than 3,000 Australian bank accounts linked to sextortion payments.
Mr Thomas said AUSTRAC has issued a financial crime guide to help businesses recognise red flags and report promptly.
“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,” Mr 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.
“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.”
